PONTIAC, Mich. (CN) – The man assigned to track down the assets of a $200 million Ponzi scam sued two people and three corporations, claiming they received money from Edward Paul May’s 8-year scam after May had executed an Assignment for the Benefit of Creditors.
May controlled more than 200 Michigan corporations and LLCs from 1999 to 2007, claiming they made money by leasing telecommunications equipment to hotels, according to the complaint by David Findling, assignee for the benefit of creditors of May and May’s company E-M Management Co.
Findling says May collected $200 million to $300 million before the Ponzi scheme collapsed.
Findling sued Charles Garavaglia, the Charles Garavaglia Trust, Mary Ann Garavaglia, Best Investment Services, C&G Consultants, and CGBMT Enterprises, in Oakland County Court.
Findling says the defendants were members in several of May’s LLCs, and that May transferred interest in nine trusts and other businesses to them, for the defendants’ benefit, after May had made his assignment for the benefit of creditors; or, if he did it before that, he did it to defraud his creditors.
Findling is represented by his own law firm, of Royal Oak.