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DailyTidings.com
  • Doodle Bra parents face charges for fraud, theft

    Ashland couple misused investors' funds, police say
  • Randolph Harry Segal, 47, and Betty Ann Segal, 30, of Ashland each face several felony charges related to securities fraud and theft. Their daughter, Rachel Segal, has not been charged.
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  • The parents of an Ashland teen who invented a product known as the Doodle Bra have been charged with misusing money people invested in the company.
    Randolph Harry Segal, 47, and Betty Ann Segal, 30, of Ashland each face several felony charges related to securities fraud and theft. Their daughter, Rachel Segal, has not been charged.
    The Medford Mail Tribune published three stories about the teen and her bra business between March 2009 and April of this year, including one when Rachel, who was 18 at the time, appeared on the ABC television show "The View" in a November segment about young entrepreneurs.
    The Doodle Bra is a plain, white, cotton bra that comes with erasable markers and stencils that can be used to create unique decorations on the bra.
    Medford police began investigating the Segals in September after the Oregon Division of Finance and Corporate Securities notified police that Doodle Bra did not have a business license and was not registered as a corporation, said Medford police Lt. Bob Hansen.
    In the course of the investigation, police found five investors who had paid a total of $30,000 to buy stock in Doodle Bra, Hansen said. The investors contacted the Oregon Department of Justice in November and December after they said the Segals failed to produce any stock certificates, and the Justice Department passed the information on to Medford police investigators, Hansen said.
    The couple allegedly promised investors receipt of shares and dividends on Doodle Bra's profits. Instead, police say, the couple used investors' funds for daily living expenses and trips to Hawaii, New York and Las Vegas.
    Police released the couple Wednesday after citing them on three counts of sale of securities by an unlicensed person, three counts of selling an unregistered security, three counts of securities fraud and two counts of aggravated theft. They were scheduled to appear before a grand jury Friday, Hansen said. Each felony carries a maximum sentence of 10 years in prison and a $200,000 fine.
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