Accused Main Line scammer Josh Verne given public defender, pleads not guilty

Josh S. Verne, a former Gladwyne resident who prosecutors allege raised millions from wealthy neighbors and friends to invest in tech start-ups but spent much of it on personal expenses, pleaded not guilty Thursday to multiple fraud counts plus aggravated identity theft, intimidating and retaliating against a former employee for talking to authorities at his arraignment in federal court in Philadelphia.

Verne was arrested Aug. 3 at the apartment he shares with his girlfriend, Lorena Mendoza, in Fort Lauderdale, Fla. He was released with an ankle monitor to ensure he doesn’t flee after Mendoza signed his nominal bail for 10% of $250,000.

Verne, who once enjoyed family homes in Gladwyne and Ventnor, threw fancy parties, and sometimes traveled by private jet, told U.S. Magistrate Judge Carol Sandra Moore Wells on Thursday that he has no job, owns no property, and has only limited assets to pay his personal and family obligations.

Wells agreed to assign Verne a public defender.

Records show Verne raised $31 million from more than 100 investors, including developer David Adelman, Fanatics owner Michael Rubin, and many other Main Line-area professionals and business owners, some of whom were close and longtime family friends of Verne. Heir to a Philadelphia furniture company, Verne is also the subject of civil fraud charges filed by the Securities & Exchange Commission last year.

Prosecutor Jerome Maiatico told the judge that the government believes Verne stole at least $14 million that he told investors and employees he was going to put into his businesses but instead used for personal expenses and to maintain a Main Line lifestyle.

“I’m working on getting employment,” Verne told the judge. Verne’s bail agreement prevents him from selling financial assets or having access to records of other people’s money.

Verne also said he needs a hip replacement but lacks insurance to pay for one, so he’s been receiving hydrotherapy four to five times a week. He asked that his ankle monitor be removed so his therapy can continue.

Maiatico, while not recommending Verne be sent to jail pending trial, noted that Verne recently took a long trip to Israel and is considered a flight risk.

If convicted of the charges, Verne “is going to jail for 10 years, under federal guidelines, or at least two years, under minimum sentencing,” he said.

The judge confirmed that Verne had surrendered his passport and said that court officials in Florida who are supervising his release can review his monitoring arrangements.

Verne is confined to southern Florida and to eastern Pennsylvania under the terms of his release. He is not allowed to do work that gives him contact with other people’s financial records.