NEWARK
– A South Jersey couple who offered
two investors the opportunity to invest in
building lots they falsely claimed to own
and upon which they claimed houses would be
developed, have agreed to pay restitution
and civil penalties, under a settlement with
the New Jersey Bureau of Securities.
Dennis
Bracall, 62, and Maria Bracall, 53, husband
and wife residing in Ventnor, and the company
they control, Pro-Tech Enterprises, LLC,
have agreed to pay $35,000 by August 31,
under the Administrative Consent Order entered
with the Bureau. If the August 31 deadline
is not met, the Bracalls must pay $30,000
and the company must pay $30,000.
The
Bracalls operated a modular home business,
Pro-Tech Custom Modular Homes, Inc. They
offered two modular home customers the opportunity
to invest a total of $125,000 in their alleged
housing development project located in Middle
Township, named Hawks Landing.
The
Bracalls falsely represented to the investors
that they would erect ten luxury modular
homes on ten lots owned by the Bracalls
and a business partner. The investment contract
provided that the investors would receive
$12,500 towards their principal amount and
a $5,000 dividend upon the settlement of
each home.
In
reality, the Bracalls owned only two of
the ten lots, according to the Bureau Chief’s
findings as stated in the Order. Furthermore,
the Bracalls commingled the investors’
funds and used the majority of the funds
to work on other properties and projects.
The
$125,000 was not returned to the investors,
nor were the promised interest payments
and dividends paid.
“The
Bracalls defrauded these investors, using
a past business dealing as a means to carry
out their scheme. Consumers should always
be cautious when offered an investment opportunity,
even if it comes from someone they know
from previous associations,” said
Acting State Consumer Affairs Director Eric
T. Kanefsky.
“Investors
should be dubious when they are offered
high rates of return at a time when bank
CDs, Treasury notes and other low-risk investments
are paying low rates of return,” said
Abbe R. Tiger, Chief of the N.J. Bureau
of Securities. “Risk assessment should
be part of every investor’s planning
before deciding where to invest their hard-earned
dollars.”
The
Bureau of Securities can be contacted toll-free
within New Jersey at 1-866-I-INVEST
(1-866-446-8378) or from outside
New Jersey at 973-504-3600.
The Bureau's website is located at www.njsecurities.gov
.
Deputy
Attorney General Stacy-Ann Davy in the Securities
Fraud Prosecution Section of the Division
of Law represented the state in this matter.
Investigator Isaac Reyes in the Bureau of
Securities conducted the investigation.
