Notable litigation filed during February 2023 includes: (1) Tell v. Modica Microindustries, Inc. and (2) Pelham v. VBit Technologies Corp., et al.

Tell v. Modica Microindustries, Inc., Civ. No. 23-2-02521-1-SEA (Wash. Super. Ct).

Ponzi victims filed suit against defendant schemers for losses arising from an alleged Ponzi scheme run through a purported construction company, Modica Microindustries Inc. The complaint alleges that Plaintiffs entered into a contract with Modica to construct a “Factory-Built Modular home” out of cargo shipping containers. Plaintiffs allege that despite paying Modica and subcontractors over $330,000, the project is at a standstill because Modica admitted to using Plaintiffs’ funds to pay for other projects as part of a “[P]onzi or pyramid scheme.” Plaintiffs seek recovery under theories of breach of contract, quantum meruit and/or unjust enrichment, breach of the duty of good faith and fair dealing, and violation of the consumer protection act.

Pelham v. VBit Technologies Corp., et al., Civ. No. 1:23-cv-00162-UNA (D. Del.).

Ponzi victims filed suit against schemer defendants for losses arising from an alleged Ponzi scheme run through purported Bitcoin mining companies, VBit Technologies Corp. and Advanced Mining Group. The complaint alleges that the Defendants promised to sell, lease, and service specialized computer hardware to mine Bitcoin for investors, but in reality, functioned as a Ponzi scheme that paid earlier investors with newer investor funds. Plaintiffs seek recovery under theories of Unregistered Offer and Sale of Securities in violation of the Securities Act  and the Exchange Act and corresponding regulations, as well as unjust enrichment and restitution. Relatedly, Ponzi victims have filed separate but related suits against these schemer defendants in November and December of 2022.