Case No. 20STCV38499 · Superior Court of California, County of Los Angeles · Decision: October 20, 2021
In 2015, while operating Edge Innovations LLC — a company with a single product and no revenue — Gary D. Merten solicited investments ranging from $25,000 to $100,000 using false valuation documents claiming the company was worth $13 million. He promised investors an ownership stake while simultaneously selling overlapping interests to multiple investors at arbitrary prices without their knowledge.
In 2020, one of the defrauded investors filed suit alleging fraud, breach of contract, and concealment. Merten never appeared in court. In 2021, the Los Angeles Superior Court entered a default judgment against him for $175,069.61 — a figure that represents just one victim out of many.
When ordered by the court to turn over assets to a receiver, he refused — and was found in contempt. That judgment remains unpaid to this day. The outstanding balance with interest is approximately $255,985.
As of June 2026, Gary Merten is the Executive Director of Progress Works California, a 501(c) organization that trains veterans in Artificial Intelligence.




Fraud Amount
$175,069.61
Total amount of financial fraud as determined by the court
Ruling
Liable
Court found the defendant liable on all counts
Date of Decision
10/20/2021
Date the court issued its final ruling and decision
Jurisdiction
Los Angeles
Superior Court of California, County of Los Angeles
Calabro filed a complaint against Gary Merten in the Superior Court of California, County of Los Angeles on October 6, 2020, alleging multiple counts of financial fraud, breach of contract, and concealment. The complaint detailed a scheme in which Gary Merten used false valuation documents to fraudulently induce the plaintiff to invest in Edge Innovations LLC — a company with a single product and no revenue that Merten falsely claimed was worth $13 million.
Merten never appeared in court to contest the allegations. On October 20, 2021, the court issued its ruling finding the defendant liable on all counts and entered a default judgment. The court's decision included detailed findings of fact establishing the nature and extent of the fraudulent conduct.
The court ordered Gary Merten to pay a money judgment of $175,069.61, consisting of $150,000 in compensatory damages, $7,890.41 in prejudgment interest, $16,493.00 in attorney's fees, and $686.20 in costs. In post-judgment enforcement, the court appointed a receiver and ordered the turnover of specified assets. Upon Merten's noncompliance, the court held him in contempt, fined him $1,500, and issued a bench warrant for his arrest. The judgment remains unpaid.
Access the official complaint and court decision filed in this case. All documents are sourced directly from court records.
The original complaint filed with the court detailing the allegations of financial fraud, the parties involved, and the relief sought.
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