Man Behind Proposed Hartford Project Pleads Guilty To Fraud

HARTFORD, CT — A former New York City executive who proposed a $45-million Hartford medical technology hub to investors and state government has pleaded guilty to securities and wire fraud, The Hartford Business Journal reported. David Wagner's company Cliniflow raised $1.5 million in private investments and could have been awarded up to $4 million from the state for the project.

However, prosecutors claim that Wagner's project, which was never built, was part of a "Ponzi-like scheme" to defraud investors. Wagner is accused of using funds raised for personal expenses and to pay off other investors, according to The Hartford Business Journal.

The three fraud counts carry maximum prison sentences of 20 years each.