|
NEWARK
-- The founder of a defunct Princeton-based
company who allegedly defrauded investors
in his firm has agreed to pay $200,000 in
restitution and a $75,000 civil penalty
to settle a lawsuit brought by the Office
of the Attorney General and the New Jersey
Bureau of Securities.
Thomas
D’Innocenzi, founder of Spanlogix,
Corp. (“Spanlogix”), also is
permanently enjoined from working in the
New Jersey securities industry, under terms
of the consent order.
“We’ve
acted to prevent future activity by this
individual in the state’s securities
industry,” Attorney General Anne Milgram
said. “Investors who sustained losses
through his actions will be receiving partial
restitution.”
D’Innocenzi,
a former resident of Flemington, founded
Spanlogix, a web site and e-learning development
company, in August, 2001. Beginning in January,
2002, Spanlogix began offering and selling
stock in itself to investors. A total of
438,040 shares of stock priced at $2 per
share were sold to 83 investors, all of
whom were residing outside the United States.
The
stock was not registered for sale with the
New Jersey Bureau of Securities as legally
required. The state in its lawsuit alleged
that D’Innocenzi and Spanlogix also
violated state law by making material misrepresentations
to investors about the purpose for raising
capital through the stock sale.
Spanlogix
never became profitable and more than $600,000
in investment capital was wired overseas
to Thailand for what D’Innocenzi claimed
were the corporation’s outsourcing
expenses.
“Potential
investors should always check with us to
verify that both the individual offering
an investment for sale, as well as the stock
or bond itself, is registered in New Jersey,”
said Vincent J. Oliva, Chief of the Bureau
of Securities. “A few minutes spent
checking with us can save a financial nest
egg amassed over a lifetime.”
Each
investor will receive a pro rata share of
the $200,000 paid by D’Innocenzi.
In
addition to the civil penalty and restitution
order assessed against D’Innocenzi,
Spanlogix has been assessed $676,080 in
restitution but the company does not have
any assets to pay restitution.
A
second defendant in this matter, Jenny B.
Kotowich (aka Jenny B. Wan) of Philadelphia,
last September agreed to pay $75,000 in
civil penalties. Kotowich, an officer of
Spanlogix, also was permanently enjoined
from working in the New Jersey securities
industry.
The
investigation was conducted by Investigators
Thomas LaGreca Jr. and Michael LaChapelle
of the Bureau of Securities. Deputy Attorney
General Megan J. Harris represented the
state in the civil litigation.
The
Bureau of Securities can be contacted toll-free
within New Jersey at 1-877-I-INVEST (1-877-446
8378) or from outside New Jersey at 973-504-3600.
The Bureau’s web site is located at
www.njsecurities.gov.
# # # |
