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A Florida man was sentenced today to nine years in federal prison for his

role in a scheme to defraud dozens of investors of a private company of more than $5

million, U.S. Attorney Christopher J. Christie announced.

Manors, Fla., to pay $4.163 million in restitution to his victims.

"Urciuoli betrayed the trust of his investors and caused devastating financial ruin for

many victims," said Christie. "The long prison sentence serves as a reminder that this

office, along with our law enforcement partners, is very serious about charging and

removing from society those that cheat and bilk others out of their life savings."

After a two-week trial in January, the jury convicted Urciouli on all counts of a six-count

Indictment, which charged five counts of wire fraud and one count of obstruction of

justice. The criminal convictions relate to Urciuoli’s solicitation of investors to purchase

shares of stock of InsPara Networking Technologies, Inc., a privately-owned business

information technologies firm based in Cranford, N.J., with seven affiliated offices

throughout the United States, as well as a location in London.

Urciuoli, the V.P. of Finance and member of the company’s board of directors, through

phone contact and written material, solicited more than 40 individuals who each invested

between $25,000 and $1 million. Urciuoli solicited investors to purchase shares of

InsPara stock, ranging between 75 cents to $2 per share, with the stated goal of making

the company attractive for a lucrative public offering or merger.

The victim-investors were located across the country, including New Jersey, New York,

Florida, Colorado, Tennessee, Illinois, California and Nevada, according to Assistant U.S.

Attorneys Robert Kirsch and Craig Carpenito, who tried the case for the government.

In total, Urciuoli solicited approximately $5.3 million from investors from which he

siphoned approximately $1.3 million through a series of five shell companies he

controlled.

Trial testimony proved that Urciuoli lied and misled investors about his sales

commissions, which totaled approximately 25 percent of the investors’ money, as well as

him being InsPara’s largest shareholder holding 3.5 million shares of company stock.

In addition, to bolster his credentials to investors, Urciuoli falsely claimed to be a licensed

securities broker, and to gain their confidence, falsely claimed that he invested up to $1

million of his own money in the Company. In convicting Urciuoli, the jury found that the

defendant did not pay anything for his shares, but rather received the shares as part of his

compensation package for recruiting investors.

In addition, the jury found that Urciuoli obstructed justice by duping some investorvictims

to sign false and misleading "disclosure statements" in an effort to conceal his

wrongdoing, which he then presented to the FBI pursuant to a grand jury subpoena.

In mid-November 2006, Kevin Holt, 54, of Cranford, N.J., InsPara’s former chief

executive officer and chairman of the board of directors, and Robert Henches, 61, of

Montville, N.J., the former chief operation officer and director, each pleaded guilty before

Judge Sheridan to separate one-count Informations that charged them with conspiracy to

commit mail and wire fraud. Neither were called to testify at Urciuoli’s trial, and their

sentencings are scheduled for June 2008.

In determining the sentence, Judge Sheridan consulted the advisory U.S. Sentencing

Guidelines, which provide appropriate sentencing ranges that take into account the

severity and characteristics of the offense, the defendant's criminal history, if any, and

other factors. The judge, however, was not bound by those guidelines in determining a

sentence.

Parole has been abolished in the federal system. Defendants who are given custodial

terms must serve nearly all that time.

Christie credited Special Agents of the FBI, under the direction of Special Agent in

Charge Weysan Dun, in Newark; and U.S. Postal Inspectors, under the direction of Postal

Inspector In Charge David L. Collins.