FREEHOLD, N.J. (CN) – A web of people and companies took more than $14 million from 900 victims in a Ponzi scam, a class action claims in Monmouth County Court. The class claims Interglobal Technologies and Michael Tomayko, who already have been sued by the SEC, led the scam, which involved at least seven other businesses and five other people.
The class claims “that the defendants simply conspired to commit widespread fraud to illegally steal money from plaintiff and over 900 others, and then convert the money for their own personal uses. The defendants, through illegal practices, raised over $14.5 million from 900 ‘investors’ – will or otherwise – through a fraudulent, unregistered offering of preferred stock and joint venture interests in defendant IGT. During such actions, the defendant knowingly and fraudulently used false and fabricated information to lure investors.”
The class claims that Tomayko and Interglobal settled the SEC lawsuit in May 2008 and agreed to pay $100,000 in fines and disgorge more than $10.5 million. “The criminal investigation continues,” according to the complaint. “Plaintiff and others similarly situated have not been paid back a dime.”
Here are the defendants: Dwayne Long, Citywide Financial Services Corp., Lee Schulz, Lee Schulz Financial Services, Linda Palmer, Noemie Dodakian, Michael Tomayko, Canady Holding LLC, Terry Crowdy, Jubilee Ventures, Jubilee Membership Club, Preferred Interest Leasing Ltd., Inter Global Technologies Inc., and the DCSTH Foundation.
The class is represented by Eugene LaVergne of West Long Branch, N.J.