A Linwood man is accused of orchestrating a long-running securities fraud while embezzling hundreds of thousands of dollars from his employer's bank account.
Joseph Geromini, 54, was chief operating officer, controlling the company’s bank and debit card accounts, and was responsible for soliciting investments in the company through debt and equity fundraising.
But instead of helping the company make money, he allegedly helped himself.
Geromini told investors that he would invest their funds to pursue the company’s business plan but instead diverted hundreds of thousands out of the company’s bank account.
He allegedly used much of the money to pay himself through unauthorized wire transfers, ATM cash withdrawals, and debit card transactions.
Geromini is charged with 10 counts of wire fraud and two counts of securities fraud.
While the indictment doesn't name the Philadelphia-based company, a civil suit identifies it as Group K Diagnostics.
The biotechnology company based in Center City sued former COO Geromini in 2019, in a filing that partially mimics the criminal allegations he now faces.
Geromini began working for Group K in July 2018, through his consulting business, Xanitos Marketing LLC, which shares his address on Arlington Avenue in Linwood.
On Aug. 3, 2018, he was hired as chief operating officers. That apparently lasted 10 months, according to the lawsuit came.
In that time, he allegedly sent himself more than $150,000 of the company's money via wire transfers, including one that was $50,000.
The then-chief operating officer also used the company's credit card, debit card and checks to pay for personal items, including a suite at the 76ers game and $5,750 to a Bryn Mawr plastic surgeon for a friend.
Geromini allegedly said the money was paid to the hospital so that the company could conduct clinical trials there.
This is not Geromini's first criminal charge.
He was sentenced to two years' probation for writing bad checks in 2007 in Warren County, court records show.
The next year, he was charged with theft by unlawful taking of more than $75,000. He was given three years' probation under a plea agreement in 2010.
Geromini currently is one of three partners listed with a consulting firm.
His biography on the company's website says he's "a seasoned executive with over 28 years of experience managing high level corporate operations."
"An articulate communicator, Joe has built lasting relationships with senior management of clients, partners, and vendors," it continues. "He has a history of success, leading initiatives for sales, marketing, advertising, operations, and product management."
One of the other partners listed is a woman Geromini lists as his fiancee on Facebook. She did not return an email seeking comment.
A woman who answered the phone at the business said no when asked if she could comment on Geromini. She then hung up.
