InfrAegis Founder Gregory Webb Sentenced to 9 Years for Selling Investors on Anti-Terror Kiosks and Billion-Dollar Deals That Didn't Exist

Case from 2014–2018 (U.S. Attorney's Office latest release: March 2, 2017; later developments are from court records and other sources cited below). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Gregory Webb, founder and CEO of Elk Grove Village-based InfrAegis Inc., was sentenced on March 1, 2017, to nine years in federal prison for raising more than $9 million from more than 200 investors with false claims about his homeland-security technology company, the U.S. Attorney's Office for the Northern District of Illinois announced [1]. A federal appeals court affirmed his conviction and sentence in 2018 [3].

How the scheme worked

According to prosecutors and the appeals court [1] [3]:

1. Big promises: In written materials and investor conference calls from 2007 to 2012, Webb said InfrAegis had signed, or was about to sign, billion-dollar contracts with governments and cities around the world, including Chicago.
2. Miracle products: He said the company's products could recognize people on the terrorist watch list, instantly detect biological, chemical and radiological threats on city streets, and find harmful bacteria in food and water.
3. Reality: The products had never been fully developed or tested, and the company had never come close to signing a contract. Chicago officials testified they were never near a deal.
4. The phantom buyout: The appeals court said Webb repeatedly told investors that a man had bought 51% of the company for $8.7 billion and the money was "a week to ten days" away. That man was a retired mortgage broker living on Social Security.
5. Where money went: Trial evidence showed more than $500,000 paid to Webb and his spouse and more than $800,000 in corporate credit card charges for his daily living expenses.

Some investors were Chicago firefighters and other first responders. None received any return. Webb kept selling stock even while an Illinois order barred sales of InfrAegis stock from September 2008 to June 2010, the appeals court said.

The person sentenced

Gregory Webb, 71 at sentencing, of Dallas, formerly of Arlington Heights, Ill. [1]

• Indictment (Feb. 27, 2014): eight counts of mail fraud and three counts of wire fraud [2].
• Trial (July 2016): a jury convicted him on nine counts of mail and wire fraud. The other two counts did not result in convictions; the appeals court said the judge dismissed them during trial [3] [4].
• Sentence (March 1, 2017): 108 months in prison, imposed by U.S. District Judge Virginia M. Kendall, with restitution of $9,359,384.57.
• Appeal: The Seventh Circuit affirmed on March 8, 2018 (No. 17-1501).
• Civil case: The SEC sued Webb and InfrAegis in 2011, alleging a fraudulent stock offering (No. 1:11-cv-07152) [4].
• Investigation: FBI Chicago, with help from the SEC.

Red flags

• "Contracts are imminent" for years without any signed deal.
• A buyout or cash infusion "held up overseas" that never arrives.
• Stock sold through conference calls while a state regulator has ordered sales to stop.

What to do if you're targeted

1. Check with your state securities regulator for any orders against the company before buying private stock.
2. Verify claimed government contracts directly with the agency or city involved.
3. Report suspected offering fraud to the SEC at sec.gov/tcr.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Gregory Webb, Dallas, Texas	N.D. Ill. (Judge Kendall); 7th Cir. No. 17-1501	Convicted by jury July 2016 on nine counts; sentenced March 1, 2017, to 108 months; affirmed March 8, 2018	[1]-[4]

We have not found a source on any proceedings after the 2018 appeal.

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Founder of Suburban Tech Company Sentenced to 9 Years for Defrauding Investors out of More Than $9 Million," March 2, 2017. https://www.justice.gov/usao-ndil/pr/founder-suburban-tech-company-sentenced-9-years-defrauding-investors-out-more-9-million
2. U.S. Attorney's Office, Northern District of Illinois, "Owner Of Elk Grove Village Company Indicted For Allegedly Defrauding 200 Investors Of $9 Million Through Stock Sales," Feb. 28, 2014. https://www.justice.gov/usao-ndil/pr/owner-elk-grove-village-company-indicted-allegedly-defrauding-200-investors-9-million
3. U.S. Court of Appeals for the Seventh Circuit, United States v. Gregory Webb, No. 17-1501 (nonprecedential order), March 8, 2018. https://exa.ai/library/legal/opinion/yn36d1sdmjt
4. U.S. Securities and Exchange Commission, Litigation Release No. 23777, "Suburban Chicago Tech Executive Sentenced To 9 Years In Prison," March 13, 2017. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-23777

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