TRENTON
– Attorney General Anne Milgram and
Criminal Justice Director Gregory A. Paw
announced that an Ocean County woman was
indicted today by a state grand jury on
charges she stole more than $600,000 from
investors through an investment fund scam.
According
to Director Paw, the Division of Criminal
Justice obtained an indictment charging
Zina A. Martin, 43, of Jackson, with second-degree
counts of theft by deception and securities
fraud. The case was investigated by the
New Jersey Bureau of Securities.
It
is alleged that Martin, the sole owner and
president of Kairos Financial Corporation,
located at 331 Newman Springs Road in Red
Bank, stole approximately $641,000 that
she solicited from about 25 investors. Martin
distributed a brochure to investors describing
six different investment funds called the
“Kairos Funds,” including average
yearly returns for some of the funds. She
also issued monthly statements informing
investors of the amounts they purportedly
held in each of the funds. It is alleged
that, in reality, the Kairos Funds were
fictitious and investor monies were commingled
in a brokerage account of Kairos Financial.
Martin allegedly used funds from that account
for personal expenses, including mortgage
payments, monthly living expenses and the
purchase of a Cadillac Escalade.
“This
defendant distributed an offering brochure
and monthly investor account statements
to convince clients they had invested their
hard-earned money securely,” said
Attorney General Milgram. “In reality,
we charge that the Kairos Funds were nothing
more than a ploy by Ms. Martin to steal
from investors, prop up her dubious business
and bankroll a lifestyle she otherwise could
not afford.”
The
case was investigated for the Bureau of
Securities by Supervising Investigator Michael
McElgunn, Investigator Richard Smullen and
Chief of Enforcement Richard Barry. Deputy
Attorney General Patrick Flor presented
the case to the state grand jury for the
Division of Criminal Justice - Major Crimes
Bureau. In October 2007, the Bureau of Securities
revoked the investment adviser registrations
of both Martin and Kairos Financial.
Second-degree
crimes carry a maximum sentence of 10 years
in state prison and a criminal fine of $150,000.
The indictment is merely an accusation and
the defendant is presumed innocent until
proven guilty. The indictment was handed
up to Superior Court Judge Neil H. Shuster
in Mercer County, who assigned the case
to Ocean County.
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