MANCHESTER, NH – Two men are under indictment for securities fraud connected to an investment scheme in a brewery that allegedly bilked a family out of nearly a million dollars.
David Herlicka, 49, of 311 State Road Route 101, Amherst, and Dennis Nordquist, 70, of 213 Potter Hill Road, Gilford, were indicted by a Hillsborough County Superior Court North grand jury on one count each of securities fraud, theft by deception and conspiracy to commit theft by deception.
The two men were arrested in 2020 but only indicted last month.
The charges allege Herlicka and Nordquist conspired with each other and acted individually to fraudulently obtain a nearly $1 million investment from the Parktown Trust to finance operations of White Birch Brewing (WBB), first located in Hooksett and then Nashua. It was owned by Herlicka when he was arrested in 2020.
According to the indictments, in July or August 2014, Herlicka asked Gabriel Sylvestre, trustee of Parktown Trust, and/or Roger Sylvestre, if they were willing to loan WBB $500,000. In the following two months, both Herlicka and Sylvestre individually and jointly made representations to induce the Sylvestres to transfer $962,000 to WBB. The funds were to be used to expand the brewery, buy new equipment, fund the operation and buy supplies.
The money the Sylvestres transferred was a “bridge loan” to another larger loan which WBB was to receive immediately. The larger loan, they allegedly told the Sylvestres, ensured the Sylvestres would be repaid. Nordquist also said he could or would repay the Syvestre loan if WBB defaulted.
In late September, early October 2014, Herlicka sought to expedite a $1 million loan against the cash value of one or more insurance policies owned by the Sylvestres to facilitate the $962,000 transfer of funds. He is accused of telling employees of Massachusetts Mutual Insurance Co. that the Syvestres will cancel the policies if the money wasn’t expeditiously provided.
According to the indictments, once the $962,000 was transferred to WBB, a cashier’s check was purchased in the amount of $18,000 payable to Nordquist; a $67,000 check was issued to Herlicka Financial Group, owned by Herlicka, who in turn issued a check for $6,000 to Nordquist; a $16,175 check was written to cover a personal expense of Herlicka’s; and another check was issued for $60,000 to cover another one of Herlicka’s personal expenses.
Herlicka is accused of neglecting to tell the Sylvestres that WBB’s financial condition posed significant risks relative to its ability to repay the loan. He also is accused of omitting the fact that his personal financial condition precluded him from being a source to repay the Sylvestres.
According to the indictment, Herlicka also omitted telling the Syvestres that he was required to pay $814,592 to his former employer.
He also allegedly neglected to tell them he was suspended by the Financial Industry Regulatory Authority from the securities business and fined $97,484 after the authority found he falsified financial records and misled his life insurance customers.
Herlicka also allegedly omitted telling the Sylvestres that he would personally benefit from the loan.
Nordquist, according to the securities fraud indictment, falsely told the Sylvestres he could or would repay the loan if WBB failed to pay the Parktown Trust. He, too, is accused of omitting the fact that his financial condition prevented him from being able to do that.
Theft by deception and conspiracy to commit theft by deception are both Class A felonies. Securities fraud is a Class B felony. Class A felonies and are punishable by up to 7½ -15 years at the New Hampshire State Prison and/or a maximum fine of $4,000 for each charge. Class B felonies are punishable by up to 3½-7 years at the New Hampshire State Prison and/or a maximum fine of $4,000 for each charge.
The charges and allegations are merely accusations, and Herlicka and Nordquist are presumed innocent unless and until proven guilty.
