Day two of prosecution testimony in the federal trial of former MayorJasiel Correia saw more questions of investors of Correia’s SnoOwl app company.
Returning to the stand to begin the day was local orthodontist Dr. David Cabeceiras, who had invested $145,00 in SnoOwl.
Prosecutor David Tobin led Cabeceiras through the list of 19 checks he contributed to the company. Beginning with the fourth payment, all checks contained two names as payees, SnowOwl and Correia. Cabeceiras was led to believe by Correia that the addition of his name as payee was related to the creation of a second account for the company.
Soon after his final payment in 2014, Cabeceiras was presented with a promissory note that only indicated a $50,000 investment. Cabecerias said he was concerned that his remaining $95,000 was not included in the note.
When he became further concerned over his investment in the company, Cabeceiras learned from his bank that many of his checks were not deposited into another account but rather directly cashed. Cabceiras assumed Correia had cashed the checks but was unaware as to how the money had been spent.
In cross-examination, Correia defense attorney Kevin Reddington, questioned Cabceiras’s knowledge of SnoOwl and its success, noting the SnowOwl app had been approved to be distributed in the Apple App Store.
Up next on the stand was investor Steven Miller. Miller, who owns an energy company along with a real estate company in Rhode Island, testified he met Correia in 2013 where he learned about SnoOwl and Correia’s interest in seeking investors. Miller testified that Correia told him SnowOwl could be a one-million-dollar business and that he would not take draw a salary during development. Miller eventually invested $50,000 for a 5% equity state in the company. Miller invested an additional $20,000 in 2015.
When questioned by federal investigators in 2017 looking into the allegations of misuse of SnoOwl funds, Miller approached Correia seeking answers. Miller said Correia told him there were problems with the filing of SnoOwl tax returns and he would make amendments to rectify the situation. Miller said he never would have invested in SnowOwl if he knew Correia would be drawing a salary or use resources in a manner not associated with the company’s operation.
During testimony this afternoon, three additional investors took the stand.
Mark Eisenburg and Victor Martinez were approached to invest $25,000 each for a combined 7% stake in SnoOwl. Both Eisenberg and Martinez indicated how impressed they were with the perceived business acumen of Correia when they first met him.
When asked if he would have invested in SnoOwl if he knew Correia would use his money for personal gain Eisenberg responded, “a loud, strong no.”
The final witness of the day was Fall River businessman Carl Garcia, owner of Carl’s Collision. Garcia testified he invested over $33,000 in SnowOwl in 2013 and 2014 and contributed another $18,500 to pay rent for mill space that housed the 1ZERO4 business incubator and for an accountant to aid in the rectifying of SnoOwl finances with the goal of the company being sold, which never occurred.
The trial ended just before 4pm and will be back in session tomorrow beginning at 9:30am.
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