May 1, 2007 – Crosby & Higgins LLP Targets Fraud and Punitive Damages Claims Arising Out of $26 Million Ponzi Scheme
May 1, 2007
Crosby & Higgins LLP has been retained to prosecute fraud and punitive damages claims on behalf of two of the victims of an alleged ponzi scheme arising out of a “debenture program” run by the business and holiday card company, V.W. Eimicke Associates Inc. According to the two complaints filed in New York State Supreme Court, Westchester County, the company and those associated with it, exploited long-standing personal relationships with colleagues, friends and neighbors, in a classic ponzi scheme to fraudulently sell investors unsecured corporate notes in order to raise money for interest and principal payments owed to existing investors in the program. The company ultimately declared bankruptcy when the debenture program ballooned to more than $26 million, leaving defrauded investors with millions of dollars in losses and spawning an ongoing criminal investigation by the Westchester District Attorney’s office. The Plaintiffs in these actions allege that the Defendant, whose wife owned 50% of the company, personally solicited Plaintiffs’ investments in the company by fraudulently misrepresenting the company’s true financial picture and the real purpose of the “debenture program.” The Plaintiffs seek significant compensatory and punitive damages and anticipate a trial on their claims by early next year.