FBI Special Agent in Charge, Eric S. Birnbaum and San Diego County District Attorney Bonnie M. Dumanis, announced today that two defendants have been charged with 61 felony crimes including grand theft, fraudulent sales of a security, elder abuse and tax violations in conjunction with their scheme to defraud investors of more than four million dollars.

Defendants Matthew Mazur, 50, and Carlos Manjarrez, 57, are accused of making misrepresentations, omissions and false statements regarding U.S. Medical Instruments, Inc., claiming the company was successfully selling ‘SafeSnap’ syringes in the United States and overseas. SafeSnap syringes are described as disposable syringes in which the needle folds up into the syringe into a safely contained container that can be disposed with regular waste. During the course of their scam, the defendants showed potential investors a prototype of the syringe but never manufactured it in a significant quantity as they purported. In addition, Mazur and Manjarrez provided false valuations of the company they were promoting to mislead investors. The majority of the investments they collected were used for personal benefit. “Bilking investors, some of whom are senior citizens, out of millions of dollars of their hardearned savings is reprehensible,” DA Dumanis said. “Our Economic Crimes Division is working with partner law enforcement agencies to hold these defendants accountable for their crimes.”

“The FBI will continue to aggressively investigate those individuals who engage in fraudulent investment schemes that victimize the American public and undermine our economy,” said FBI Special Agent in Charge, Eric S. Birnbaum. “The FBI is committed to working with our law enforcement partners to prevent future schemes and protecting the public from those who engage in this type of fraudulent activity.”

The case was part of a joint investigation with the FBI, San Diego County District Attorney’s Office, the Oceanside Police Department and the California Franchise Tax Board. They face up to 40 years in prison if convicted of all charges. Both defendants were arrested this morning and are expected to be arraigned at 1:30 p.m. in Department 12 on Friday, March 20, 2015.