NEWARK
– The State has filed suit against
a man and a woman who allegedly defrauded
overseas investors of at least $840,000
by selling stock in a company, SpanLogix,
Inc., that they falsely claimed had earned
over a million dollars in four months through
computer software development and related
services, Attorney General Zulima V. Farber
and Bureau of Securities Chief Franklin
L. Widmann announced today.
The
Attorney General and Bureau of Securities
filed a complaint in Superior Court in Essex
County against Thomas J. D’Innocenzi
of Oak Grove Road, Flemington, N.J.; Jenny
B. Kotowich, formerly known as Jenny B.
Wan, of Alexis Lane, Philadelphia; and SpanLogix,
Inc., which previously leased an office
at 100 Overlook Center, Princeton, N.J.
Kotowich formerly lived in Flemington. The
State is seeking restitution for investors
and civil monetary penalties.
From
November 2001 to December 2002, the defendants
employed a telemarketing company to sell
SpanLogix stock to investors in Australia,
Ireland, New Zealand and other countries.
The State’s complaint alleges that
investors received cold calls urging them
to invest in SpanLogix because it was poised
to make an initial public offering and would
soon be listed on the Nasdaq. Investors
allegedly were promised a guaranteed rate
of return and were told they could redeem
their shares at any time. SpanLogix stock
was never publicly traded, and the 81 known
investors have not recovered any part of
their investments, which totaled $840,080.
“We
allege that these defendants deceived investors
by promising guaranteed returns and falsely
claiming that their company had signed a
big contract to provide services to a major
software company,” said Securities
Chief Widmann. “Investors should be
wary of big promises and call the Bureau
of Securities before investing to see if
investments and the people selling them
are registered as required by law. We will
do everything in our power to secure restitution
for these victims.”
The
State’s complaint alleges that the
defendants violated the New Jersey Uniform
Securities Law by defrauding investors,
failing to register the SpanLogix stock
with the Bureau of Securities, and failing
to register and have their telemarketers
register with the Bureau as securities agents.
By
January 2003, SpanLogix moved out of its
Princeton office, disconnected the telephone
number provided to investors for the office,
and removed their Web site from the Internet.
After that, the defendants allegedly did
not respond to investors seeking the status
of their investment or seeking to sell their
shares of stock back to the company.
The
investigation was conducted for New Jersey
by Investigators Thomas LaGreca Jr. and
Michael LaChapelle of the Bureau of Securities.
Deputy Attorney General Megan J. Harris
is handling the case for the Attorney General.
The
New Jersey Bureau of Securities registers
and regulates individuals and firms that
provide investment advice or sell securities
in New Jersey. The Bureau can be contacted
at 973-504-3600 or through Consumer Affair’s
Web site at www.state.nj.us/lps/ca.
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