In yet another shocking case of alleged fraud and breach of contract, a new lawsuit just slammed in New Jersey Superior Court in Ocean County alleges that a Lakewood couple simply "done it and ran" with $10 milion they owe to a large group of investors, FAA News has learned.
According to the complaint filed by Red Bank Attorneys Adam Garcia and Timothy J. DeHaut Esq.:
In late 2022 and 2023, the investors collectively contributed a total of $26 million to 3 separate projects.
Though these contributions were funded into a number of corporate entities, the Lakewood scammers personally guaranteed the complete and timely repayment of the investments plus interest, known as a preferred return.
In all this time however, nearly $10 million remains due and owing.
The investment agreements stipulate that the scammers will reimburse attorney’s fees and collection costs if they do not pay in full on time. However, no monies have been paid since November 2023.
The 3-count complaint seeks to enforce the personal guarantees and order repayment of areers and attorneys fees.
A number of ponzi scandals have recently come to light regarding Brooklyn and Lakewood community members.
If it's too good to be true, it most likely is!
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4 comments:
Can I ask why this is necessarily a fraud/scam?? I don’t know anything about the case outside of what you posted here, but if they lost the money in the investment, then they’re obviously not going to pay since they’re unable. That’s not a fraud. They may be personally liable, but who said they have any money themselves? The lawsuit may just be a tactic to discover if there’s any money left somewhere. Again, I only know what I read here which does not indicate the nature of the fraud
Why don't you include names of the scammers and all of their co-conspirator, so others can be on the alert.
While I agree with the “if it’s too good to be true it most probably is” sentiment, the article here is very skimpy on details as to whether this was a legitimate investment that didn’t perform (as has been the case with many deals in the last few years where the underwriting didn’t factor for interest rate hikes and other less obvious factors), or if they straight up took the money never intending to return it.
Considering as the article refers to a total of $26,000,000 invested and only $10,000,000 outstanding I am going to assume that it is the former rather than the latter.
That being said, the moniker “ponzi scheme” is not appropriate here.
to 3:38pm
Because when you solicit funds to invest in investment "A" and then hand the money over to investment "B" (which btw, who happened to actually be a Ponzi scam!!) that is FRAUD! And THAT is what happened!
And yes the names should be posted so that others don't follow suit.
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