PALM BEACH, Fla. (CN) – A woman claims in court that a precious metals dealer ran a boiler room that fleeced her for $120,000, three-quarters of which went to commissions and service fees.
Glenna Widicker-Gow sued Greenwich Financial Inc., and its employees, Christina Oranoto, Allan Niskar, Tim Cavender, Amber Jones, Ricky Tolls, and Richard Oranoto for fraud and negligent misrepresentation.
Their business model “was based upon the model of a classic fraudulent ‘boiler room,'” according to the lawsuit in the 15th Judicial Circuit Court of Palm Beach County.
“On or about the later part of September 2007, the defendant, Ricky Tolls, a representative from Greenwich Financial Inc., contacted the plaintiff through a ‘cold’ call about any interest that the plaintiff might have in opening an account with the defendant, Greenwich Financial Inc., promising big profits by investing in precious metals, with little risk,” the complaint states.
“In the ensuring months, the defendants, Ricky Tolls and/or Allan Niskar, not only called the plaintiff to tell the plaintiff that she had missed numerous opportunities to make large profits, in the precious metals business, but also forwarded to her charts, research reports and other documents allegedly reflecting the continuing and upward explosion in the metals market movement with little to no mention of risk,” Widicker-Gow added.
After eventually opening an account with Greenwich, Widicker-Gow says its agents constantly harassed her to contribute more money to her precious metals investment, which she continually handed over.
Widicker-Gow attempted to close her accounts when she learned the market was not doing well in March 2008, but Greenwich persuaded her that everything was fine, according to the complaint.
“Apparently, as the market did deteriorate, the defendant Greenwich Financial did liquidate positions on its own without the plaintiffs prior approval and in an order that did not benefit the plaintiff,” the lawsuit states.
“Finally, in October of 2008, apparently the defendant Greenwich Financial closed and it returned to the plaintiff approximately $800 out of the $120,000 that she had invested.”
Greenwich allegedly earned $89,000 from Widicker-Gow in commissions and services fees, the complaint states.
Widicker-Gow seeks punitive damages for fraudulent inducement and negligent misrepresentation. She is represented by Russell Forkey of Ft. Lauderdale.