Tobin ordered to undergo mental health treatment

Baltimore Business Journal - by Larry Rulison Staff

Former Network Technologies Group Inc. CEO Michele Tobin is required to undergo mental health treatment and alcohol counseling as she awaits sentencing after pleading guilty last month in U.S. District Court in Baltimore to one count of wire fraud.

Tobin was CEO of the Fells Point telecommunications firm when senior executives, including Tobin, allegedly doctored financial records to attract more than $5 million in loans and venture capital financing. Tobin and three other executives were indicted Jan. 22 by a federal grand jury on ten counts of mail, wire and bank fraud.

Tobin pleaded guilty Feb. 20 to one count of wire fraud. Federal prosecutors dropped the remaining nine counts of fraud in exchange for her cooperation in prosecuting the case. She faces a maximum sentence of 30 years in prison and a $1 million fine on the charge, but her cooperation should lower that significantly.

Thomas Bray, the former chief financial officer, pleaded guilty to one count of wire fraud Feb. 27. But the two other company officers charged in the alleged scheme — Victor Giordani Jr., the former chief operating officer, and Beverly Baker, the former controller — have both pleaded not guilty and are awaiting trial in April.

Both Tobin and Bray have been released pending sentencing as long as they cooperate with prosecutors. Except for surrendering his passport, Bray did not have any special conditions placed on his release. Both will be sentenced in May after any trial.

However, Tobin, who now lives in Colorado near the resort town of Vail, has several special conditions she must meet until then, including refraining from using alcohol and participating in alcohol counseling, according to documents filed with U.S. District Court. She also must "participate in mental health treatment," according to the documents.

Those conditions were never mentioned in open court during Tobin's Feb. 20 hearing, although Tobin's lawyer, Joseph "Wick" Sollers and prosecutors did confer with U.S. District Judge J. Frederick Motz at his bench at one point during the hearing — but that discussion was inaudible to observers.

Tobin would not speak to reporters when she appeared in court Feb. 20. She told NTG employees she was suffering from cancer when she resigned June 28. When she appeared in court in Baltimore, Tobin looked bald and had a scarf wrapped around her head. She also looked weak and pale. Her cancer was never mentioned during the entire proceeding, although the judge told her she did not have to stand during the hearing.

A message left with Sollers was not immediately returned. Tobin could not be reached for comment. A call to the U.S. Attorney's office was not immediately returned.