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NEWARK
– A State Superior Court Judge has
granted injunctive relief sought by the
New Jersey Bureau of Securities against
an Allendale-based company, its top executive,
and two other business entities, as part
of a lawsuit the Bureau filed in July alleging
that the defendants defrauded nearly 800
investors of approximately $9.5 million.
Under the Order issued by
Judge Harry G. Carroll, an independent monitor
will review and evaluate the business entities
for such things as management and governance
policies and procedures, to ensure compliance
with state and federal securities laws.
The monitor must report to the Court within
90 days of the Order and quarterly thereafter.
The Order enjoins Thomas
Fagan from, among other things, controlling
an issuer of securities or acting as an
officer, director, or manager of an issuer;
or supervising employees of an issuer. Two
of the three corporate defendants come within
the definition of issuer under New Jersey
law. The Order would allow Fagan to act
in a consulting capacity to those business
entities. Fagan’s wife had previously
consented to an order that included injunctive
relief and a residential asset freeze.
The Bureau filed suit against
Fagan and his wife, Candace Fagan, for allegedly
using funds raised from investors for their
personal expenses. According to the lawsuit,
Fagan was not registered as an agent with
the N.J. Bureau of Securities when he sold
approximately $9.5 million in unregistered
Energex stock.
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