and NBC News
Home to the Jersey Shore and fun summer days, New Jersey is a bustling community that carries a long history including entertainment, business, and fraud.
In 2013, it was reported that a New Jersey man was arrested for allegedly operating an $18 million Ponzi scheme involving victims from the area. Then in another reported instance, a group of men from Jersey Shore were allegedly caught running a Ponzi scheme that promised investors a 120 percent return on investment. The most infamous financial fraud case in New Jersey involves the "Real Housewives of New Jersey" couple Teresa and Giuseppe "Joe" Giudice who were allegedly charged with conspiracy to commit mail, wire, and bank fraud. Thousands of people from different demographics and income levels often commit fraud or find themselves at risk of being defrauded.
As recently as June of 2019, Longfin Corp was at the forefront of a case in which their CEO was alleged to dishonestly acquire a Nasdaq listing for the company. Venkata Meenavalli, Longfin’s CEO, and the company itself fraudulently recommended Longfin shares to investors. As a finance and tech company allegedly based in New Jersey, Longfin purportedly fabricated revenue for the company, while also purportedly lying about offshore operations. This offshore base of Longin Corp. allegedly oversaw the management of the company in the United States. Assets and operations apparently occurred offshore and the company in the United States issued shares in the US even though the shares were not paid for in order to appear to meet Nasdaq criteria. A consultant of Longfin Corp, Andy Altahawi, along with Longfin’s CEO Venkata Meenavalli, allegedly falsified the number of shareholders and the shares issued to Nasdaq, which earned them over $60 million dollars in tainted profit. This “profit” purportedly translated to ¾ of their entire revenue for that year. The company reportedly delisted itself from Nasdaq and eventually shut down. The company and Venkata Meenavalli were alleged to be in violation of the Securities and Exchange Act of 1934, for a number of alleged fraudulent actions, including counterfeiting official documents and records to conceal their wrongdoing. Not long ago, the U.S Attorney’s office for the District of New Jersey stated criminal charges in opposition to Venkata Meenavali. Andy Altahawi was ordered to make restitution of his tainted profits, which allegedly amounted to about $21 million and pay a penalty.
Also, in May 2019, the District of New Jersey, received a complaint in which Donald A. Milne III was alleged to falsely convince investors that their investment would be utilized for the operating budget of Instaprin Pharmaceuticals. The investor funds were supposed to be directed towards creating aspirin for heart attacks and strokes but rather allegedly used for personal extravagance and personal lawsuits. The SEC’s complaint included violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and the registration provisions of Section 5(a) and 5(c) of the Securities Act of 1933. The case was apparently settled as Milne and Instaprin Pharmaceuticals agreed not to commit fraud and were ordered to pay back over $3 million dollars not including civil penalties which summed up to over $3 million dollars, for both Milne and the pharmaceutical company combined. This decision is waiting for court consent.
The Foreign Corrupt Practices Act was allegedly violated by a major multinational corporation based in Teaneck, New Jersey. Two individuals associated closely with Cognizant Technology Solutions Corp are alleged to have encouraged and carried out millions of dollars of bribe money to a government official based in India. Cognizant’s President Gordon Coburn was reportedly faced with a demand to pay $2 million dollars for a construction firm to finance a bribe for a government official so that Cognizant's building under construction could be completed smoothly. Various closely associated individuals with Cognizant are alleged to have concealed this fraud using falsified information. This pattern of bribing and concealing the evidence was reportedly repeated multiple times. The chief legal officer alongside Gordon Coburn was alleged to have engaged in various securities frauds alongside breaches in foreign guidelines of ethical corporate practice. Cognizant never gave a statement regarding these allegations, but it is apparently facing civil penalties up to $6 million dollars, as well as restitution of ill-gotten gains over $19 million dollars. Coburn was reportedly one of two closely associated Cognizant employees to be indicted on various criminal charges under the Department of Justice and United States Attorney’s Office in the District of New Jersey.
These cases illustrate a few ways in which individuals can be victims, defendants, or even witnesses in cases based on securities laws and fraud. Malecki Law has been working with clients both domestic and internationally who are impacted by fraud for over two decades. Protecting a clients’ interest as well as maintaining high ethical standards is a priority for the firm. As the head of the firm, Jenice Malecki also shares her talents and vast experience on many shows including Wall Street Journal Live, NBC’s Today Show, Fox Business News, ABC’s Eyewitness News, Bloomberg Television, China TV, EBR TV and Steve Forbes’ in-flight radio show “America’s Most Influential Women in Government, Technology, Business, and the Law.” Malecki Law stands ready to help you through this process, if you are seeking to report or prosecute a case for fraud to get your investment back.
To schedule a free initial consultation with Malecki Law, please call (212) 943-1233, or email email@example.com