NEWARK-Three
men who solicited members of a Wyckoff church
and others to invest funds, but in reality
used investor’s monies for personal
expenses and purchases, have settled lawsuits
filed by New Jersey Bureau of Securities (NJBOS).
David A. Talbot of Florida,
Robert Schroy of Illinois and Kenneth Simmons
of California are permanently restrained and
enjoined from working in the securities industry
in New Jersey. The Office of the Attorney
General through the NJBOS filed suit against
the three men and the companies they controlled
in August, 2008.
“These men promised
investors that the profits from their investments
would fund the purchase of a new church building
and other charitable undertakings. They defrauded
investors who wanted to use their monies for
altruistic purposes by instead diverting the
monies for their own personal gain,”
Attorney General Anne Milgram said.
Neither Talbot, Schroy or
Simmons, nor the securities offered to investors,
were registered with the NJBOS as legally
required.
Under terms of his settlement,
Talbot and the companies he controlled --
His Glory Worldwide, L.L.C and Prima Art International,
Inc., are required to repay $133,500 to investors.
Talbot also is required to pay a civil penalty
of $80,000.
His Glory Worldwide, L.L.C.
is a Nevada corporation that listed Talbot’s
former Hackensack apartment as its business
address. Prima Art International, Inc. is
a West Trenton-based L.L.C. where Talbot was
believed to a manager.
Under terms of his settlement,
Schroy and the companies he controlled are
required to pay $434,000 in restitution. Schroy
also is required to pay an $80,000 civil penalty.
Schroy’s companies are
Worldwide Marketing Network, Inc., a Nevada
corporation where Schroy was believed to be
President and Jesus Rallies in Chicagoland,
Inc., which listed Schroy and Simmons as two
of its three board members.
Neither Talbot nor Schroy
are believed to have assets for paying restitution
or the civil penalties.
Simmons and International
Business Consulting Inc., of Nevada, where
Simmons was believed to be its Chief Executive
Officer, are required to repay $70,500 to
investors. Simmons also is required to pay
a $25,000 civil penalty. He has begun to make
payments to satisfy the terms of the settlement.
“Investor fraud is on
the rise as consumers seek alternatives to
stocks and bonds in these difficult financial
times,” said David Szuchman, Consumer
Affairs Director. “Investor complaints
to the Bureau of Securities are up 25% in
the first quarter of 2009 and we remain committed
to reviewing each complaint and taking action,
where appropriate, against those who seek
to enrich themselves at the expense of investors.”
The
NJBOS 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.
Investors contacting the Bureau can verify
if the person offering an investment is registered
to do business in New Jersey. The investment
offered also must be registered with the NJBOS.
“Investors must be vigilant, even when
the opportunity comes from someone they know,”
said Marc B. Minor, NJBOS Chief. “It’s
natural to want to trust members of your organization.
Unfortunately, scammers prey upon that trust,
betting that their victims are less likely
to vet the investment or its salesperson as
thoroughly as they otherwise would. I encourage
investors to use the Bureau to do their due
diligence first.”
The NJBOS, in its lawsuit,
alleged 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 its members 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% weekly returns.
They allegedly stated that the returns would
fund the church purchase as well as other
charitable undertakings.
Simmons sent e-mails to the
investors to periodically update them on the
performance of their investment vehicle. Investors
never received a prospectus.
Rather than investing the
monies, Talbot, Schroy and Simmons 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.
Acting Chief of Investigations
Rudolph G. Bassman and Investigator Thomas
Dellatorre conducted the investigation of
this case. Deputy Attorneys General Victoria
A. Manning and Toral M. Joshi represented
the Bureau of Securities in this matter.
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