Alan Derek Jernigan was sentenced May 22 to 10 years probation, a condition of which was full restitution of $340,960 to five investors in a fraudulent scheme involving the sale of medical kits overseas.
Jernigan lived in the Houston area when he sold investments in deals that would purportedly export medical test kits to the Philippines and Malaysia. Jernigan told investors he had secured export contracts with the countries' governments, but the contracts did not exist and Jernigan never exported any kits.
Jernigan pleaded guilty to securities fraud, one of the three charges in his indictment, in 2016. Jernigan was sentenced in Brazoria County State District Court. He was taken into custody after sentencing to begin serving 60 days in the Brazoria County jail.
Besides the restitution to five investors, the terms of his probation require Jernigan to make monthly payments to a sixth investor until full restitution is paid.
Jernigan didn’t disclose previous financial problems to investors. In 2007 he filed a Chapter 13 bankruptcy petition in the Bankruptcy Court for the Southern District of Texas. The bankruptcy was pending when Jernigan sold the investments.
Jernigan also did not disclose an unpaid $53,847 civil court judgment against him in Maryland in a case filed by an investor in a similar medical supplies investment program.