Notable litigation filed during August 2024 includes: (1) Garcia, et al. v. Jazzberry Digital Solutions, Inc., et al., No. 30-2024-01419250 (Cal. Super. Ct.); (2) Dottore v. Scheibal Property Development, Inc., No. cv-2024-08-08-3519 (Ohio Ct. Comm. Pl.); and (3) SEC v. Mendia-Alcaraz, et al., No. 24-cv-5823 (N.D. Cal.).

Garcia, et al. v. Jazzberry Digital Solutions, Inc., et al., No. 30-2024-01419250 (Cal. Super. Ct.)

Victims filed suit in California state court against schemers for an alleged multi-million-dollar Ponzi scheme targeting Latin American investors. The defendants allegedly promised investors a guaranteed high rate of return on their investments,  which were primarily made through cash payments made from investors and only a fraction of which were repaid. The complaint alleges that defendants engaged in fraud, negligent misrepresentation, breach of contract, conversion, violations of California penal, corporate, and business code, and failed to provide an accounting of how the victims’ funds were spent. Accordingly, plaintiffs seek compensatory, punitive, and exemplary damages, recission of the investments, restitution of the consideration paid, three times the amount taken pursuant to California Penal Code, interest, and attorneys’ fees.

Dottore v. Scheibal Property Development, Inc., No. cv-2024-08-3519 (Ohio Ct. Comm. Pl.)

Mark Dottore, a court-appointed receiver, filed another lawsuit in Ohio state court against property purchasers to avoid and recover property fraudulently transferred in the course of a multi-million-dollar Ponzi scheme. The receiver filed suit to recover the allegedly improper transfers and equitably distribute the funds among victims of the scheme. Consistent with prior actions brought by the receiver, the complaint alleges that bad actors had wrongfully and fraudulently represented to investors that their capital would be utilized to purchase and renovate real estate properties, which were ultimately not used for such purpose. Here, the receiver seeks disgorgement of the funds transferred to defendants from the schemers prior to the receivership under claims for avoidance of fraudulent transfer and seeks judgment imposing a constructive trust under Ohio Code.

Click here to find the prior related actions filed in the same court by Mr. Dottore which have been previewed by Ponzi Perspectives.  

SEC v. Mendia-Alcaraz, et al., No. 24-cv-5823 (N.D. Cal.)

The SEC filed suit in California federal court against a defendant schemer for losses arising from an alleged private index fund investment scheme run through the sale of unregistered securities by the schemer’s wholly owned private equity firm. The complaint alleges that the schemer falsely guaranteed investors the full return of their capital, plus dividend returns between 12% and 36.88%. The SEC alleges violations of the Securities Act, Exchange Act, and the Advisors Act and seeks disgorgement of ill-gotten gains as well as permanent injunctive relief prohibiting the defendant from investing, selling, or trading stock to ultimately prevent future violations of federal securities laws.