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NEWARK-The
New
Jersey Bureau of Securities has filed
suit against three men who allegedly conned
investors, including members of a Wyckoff
church, out of an estimated $500,000 by
promising their investments would fund charitable
purposes and the purchase of a new church
building.
In
reality, they transferred investors’
money between business and personal accounts
that they controlled and ultimately used
the funds for personal expenses and purchases.
None
of them, nor the securities, were registered
with the Bureau of Securities as legally
required.
“It
is especially egregious that this scam was
perpetrated by appealing to the altruistic
nature of church members,” Attorney
General Anne Milgram said. “Rather
than use the proceeds of these investments
to do good, as promised, these con men used
lies and deceptions to enrich themselves.”
The
five-count complaint, filed in State Superior
Court in Bergen County, alleges that David
A. Talbot of Hackensack, Robert Schroy of
Illinois and Kenneth Simmons of California,
committed multiple violations of the state’s
Uniform Securities Law. Also named as defendants
are the following businesses that they were
affiliated with:
- His
Glory Worldwide, L.L.C., a Nevada corporation
that listed Talbot’s Hackensack
apartment as its business address;
- Prima
Art International, Inc., a West Trenton-based
L.L.C. where Talbot is believed to a manager;
- Jesus
Rallies in Chicagoland, Inc., which lists
Schroy and Simmons as two of its three
board members;
- Worldwide
Marketing Network, Inc., a Nevada corporation
where Schroy is believed to be president;
and
- International
Business Consulting Inc., of Nevada, where
Simmons is believed to be its chief executive
officer.
In
its lawsuit, the Bureau of Securities alleges
that Talbot, Schroy and Simmons operated
a fraud from March to October 2007.
Talbot,
a former member of the Wyckoff Assembly
of God Church, later became affiliated with
the New Horizons Fellowship. The fellowship
rented a church in Wyckoff and were interested
in purchasing a church building.
Talbot
and Schroy used prayer conference calls
to solicit fellowship members and others
with an investment that they promised would
generate 12% to 35% monthly returns. They
allegedly stated that the returns would
fund the church purchase as well as charitable
undertakings.
The
scam attracted at least 10 investors, including
some church members, who paid an estimated
$500,000 to purchase the bogus investment.
Simmons
allegedly sent e-mails to the investors
to periodically update them on the performance
of their investment vehicle. No documents
were provided to investors.
Rather
than investing the monies, the defendants
allegedly transferred the funds between
bank accounts that they controlled and ultimately
spent the money on personal items including
furniture, electronic appliances, hotel
stays, restaurant meals and auto leases,
among others.
Bureau
of Securities investigators have identified
at least 15 bank accounts that were used
in this fraud.
“Talbot
used his connection to these church members
to gain their trust and cheat them out of
their hard-earned money,” said Vincent
J. Oliva, Bureau of Securities Chief. “No
matter how good the investment sounds, or
how well the seller represents himself,
would-be investors should make sure both
the person and the product being offered
are registered with the Bureau of Securities.”
Talbot
is currently seeking appointment as the
financial advisor to former Atlanta Falcons
quarterback Michael Vick in Vick’s
pending bankruptcy case in the United State
Bankruptcy Court, Eastern District of Virginia
(Newport News). The Bankruptcy Court is
expected to hear the application on September
5, 2008.
In
his certification to the Bankruptcy Court,
Talbot represented that he is arranging
a fellowship for Vick with Pastor Kevin
Jonas, the former pastor of Wyckoff Assembly
of God Church and the father/manager of
the Jonas Brothers entertainment group;
Tony Dungy, head coach of the Indianapolis
Colts football team; and former professional
football player Deion Sanders.
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.
Supervising
Investigator Rudolph G. Bassman and Investigator
Thomas Dellatorre conducted the investigation
of this case. Deputy Attorneys General Victoria
A. Manning and Toral M. Joshi are representing
the Bureau of Securities in this matter.
The Bureau of Securities thanks Chief John
Ydo of the Wyckoff Police Department for
his assistance during the investigation
of this matter.
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