Notable litigation filed during September 2024 includes: (1) Williamson, et al. v. Linarducci, et al., No. 24-cv-01526 (S.D. Ind.); (2) Perrotta v. First Edge, LLC, et al., No. 24-cv-01638 (M.D. Fla.); (3) Next Gen. Inv. Grp., LLC, et al. v. Pure Health Enters., Inc., et al., No. 24-cv-06764 (N.D. Cal.); (4) Commodity Futures Trading Commission v. Staryk, et al., No. 24-cv-01561 (D. Conn.).
Williamson, et al. v. Linarducci, et al., No. 24-cv-01526 (S.D. Ind.)
Victims filed suit in federal court against perpetrators of an alleged multi-million-dollar Ponzi scheme, claiming defendants marketed a program where investors would deposit funds to be used for either bridge loans to developers or joint ventures and would generate 10% returns in 3 months for investors. The plaintiffs allege that, rather than following the marketed investment plan, the schemers paid earlier investors with new investors’ money. Plaintiffs brought a suit for Securities Act violations, Indiana Securities Act violations, negligent misrepresentation, common law fraud, breach of fiduciary duty, professional negligence, and unjust enrichment and seek restitution and disgorgement of the schemers’ profits, legal expenses and attorneys’ fees, and that the schemers be permanently enjoined from continuing to engage in the conduct alleged in the complaint.
Perrotta v. First Edge, LLC, et al., No. 24-cv-01638 (M.D. Fla.)
A victim filed suit in federal court against defendant schemers for losses arising from an alleged Ponzi scheme that purported to offer investment opportunities into the secondary market for petroleum. The victim alleged that the schemers made misrepresentations about their involvement in the petroleum resale industry until plaintiff provided investment funds to the schemers. The complaint alleges that plaintiff invested $446,000 and was promised $149,000 in profits—neither of which was returned or paid out. Plaintiff brought suit for a violation of the Exchange Act and corresponding regulations, breach of contract, and unjust enrichment and seeks disgorgement of schemers’ profits plus prejudgment interest on nominal, compensatory, and special damages, attorneys’ fees. and that the schemers be permanently enjoined from violating securities laws.
Next Generation Investment Group, LLC, et al. v. Pure Health Enterprises, Inc., et al., No. 24-cv-06764 (N.D. Cal.)
Victims filed suit in federal court against schemers who purported to offer investment opportunities into the rights for Latin American films on HBO and Netflix, investments which defendants purported were developed through their business relationships. The complaint alleges that the schemers promised 35% returns on investments within six months to two years, however, they allege the investment plan was entirely fabricated because the schemers did not have a relationship with anyone at HBO or Netflix as they represented, and investors’ funds were instead used to fund the schemers’ own lavish lifestyles. Accordingly, the plaintiffs brought a suit for unfair business practices and breach of contract, seeking restitution and disgorgement of the schemers’ profits, compensatory damages, and attorneys’ fees.
Commodity Futures Trading Commission v. Staryk, et al., No. 24-cv-01561 (D. Conn.)
The Commodity Futures Trading Commission (“CFTC”) filed suit in federal court against defendant schemers who purported to offer investment opportunities into commodity futures contracts. However, the complaint alleges that investors’ funds were never used on commodity futures contracts and were instead misappropriated and sent to offshore bank accounts. Accordingly, the CFTC seeks recovery under theories of violations of several Commodity Exchange Act and CFTC Regulations.