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July 9, 2005Trio charged in senior scamOfficials say victims lost $1.1 millionByRecord-Eagle staff writer TRAVERSE CITY - Owners of a local investment company face felony charges after they allegedly bilked area senior citizens out of $1.1 million. Gary L. Singer and Margaret Zimmerman, owners of Estate Growth Management in Traverse City, surrendered to police Friday and appeared before 86th District Court Judge Michael Haley. Company president Singer, 54, faces four counts of false pretenses over $20,000, punishable by up to 10 years in prison. Zimmerman, 47, listed as Estate Growth's CEO, is charged with eight felony counts, including two counts of embezzlement from a vulnerable adult over $20,000 and four counts of false pretenses over $20,000. Also charged was Estate Growth employee John Brzezinski, 24, accused of four felony counts, including three of embezzlement over $20,000. The state attorney general's office also filed 10 counts of embezzlement and false pretenses against the business, which lists Singer as resident agent. Their attorney disputed the charges. "I do not believe that Gary Singer and Maggie Zimmerman ever had the intent to defraud, embezzle or cheat any of their clients," said Gerald Chefalo. Attorney general spokeswoman Allison Pierce said the alleged scheme, for which Estate Growth earned $350,000 in commissions, involved 14 victims in Grand Traverse, Leelanau, Benzie, Cheboygan, Charlevoix, and Manistee counties. Grand Traverse County sheriff's detectives began investigating the firm a year ago. Zimmerman allegedly approached one victim, a 74-year-old Traverse City woman in an assisted-living home, in November 2002. Zimmerman allegedly convinced the woman to invest $218,400 in two California companies - Network Services Depot and Bikini Vending - and claimed over $54,000 in commissions, according to court records. Both companies were shut down by state and federal authorities in April 2004 for violating securities laws. Zimmerman also allegedly approached a Benzie County couple in 2003 and they agreed to transfer $300,000 in investments into the now-defunct companies. Chefalo said both Singer and Zimmerman invested with the intent to make money for their clients, but were given bad information.
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