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For Immediate Release:  
For Further Information Contact:
March 1, 2006

Office of The Attorney General
- Zulima V. Farber, Attorney General
Bureau of Securities
- Franklin L. Widmann, Chief

 

Peter Aseltine
609-292-4791

 

State Sues Spanlogix, Inc. and its Principals for
Allegedly Defrauding Overseas Investors of $840,000

Defendants lived in Flemington and had office in Princeton

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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