Michael E. Conner, a 56-year-old resident of Lake George, New York, has been found guilty by a jury for defrauding investors and failing to file tax returns. The verdict was announced by United States Attorney John A. Sarcone III and Harry Chavis, Acting Special Agent in Charge of the New York Field Office of Internal Revenue Service-Criminal Investigation (IRS-CI). After an eight-day trial, the jury convicted Conner of 22 counts of wire fraud and two counts of failing to file tax returns. The trial was overseen by United States District Judge Mae A. D’Agostino.
Through the trial, evidence demonstrated that Conner, an inventor of household products with several patents, convinced individuals to invest in his patents and loan him money. The funds were purportedly to be used for business initiatives, including marketing and selling his patents. However, between 2020 and 2021, Conner misused these loans for personal expenses instead of business purposes. His spending included outings at upscale restaurants, purchases of expensive French wine, and concert tickets.
Although since 2008, Conner has received approximately $6 million from investors, he never successfully sold a patent or generated revenue from his inventions. Victims of his fraudulent activities were identified as residents of Virginia, North Carolina, and Warren County.
In addition to fraudulent business operations, Conner was convicted of neglecting to file personal income tax returns for the years 2020 and 2021. During these years, Conner received over $393,000 in loans, which he treated as personal income, failing to report it to the IRS. The jury, however, acquitted him on one count of wire fraud and two counts of failing to file tax returns for the years 2018 and 2019.
Following the verdict, Conner was remanded to custody. He will face sentencing on August 14, 2025. For the wire fraud convictions, Conner could receive a sentence of up to 20 years in prison, a fine up to $250,000, and a post-imprisonment supervised release of up to three years. The misdemeanor tax violations could result in up to one year of jail time and a fine of up to $100,000. The sentence will be determined by a judge based on the specific statutes violated, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the IRS-CI, and the prosecution is being handled by Assistant U.S. Attorneys Michael Barnett and Mikayla Espinosa.
