|
| |
|
| |
|
|
|
July 29, 2005Couple sues TC businessEstate Growth Management target of suitByRecord-Eagle staff writer TRAVERSE CITY - A local couple is suing for over $200,000 in damages after suspecting they were swindled in an investment scam by Estate Growth Management of Traverse City. John and Margaret Wolf, of Traverse City, filed suit in 13th Circuit Court against Estate Growth Management and its owners, Gary Singer and Margaret Zimmerman, for allegedly failing their "fiduciary duty" in investing over $100,000 of the couple's money. Singer, 54, and Zimmerman, 47, were charged this month with multiple felony counts of false pretenses and embezzlement against vulnerable adults in connection with a scam that cost area investors over $1 million. The state attorney general's office also filed four felony charges against employee John Brzezinski, 24, and 10 counts of embezzlement and false pretenses against the business. The Wolfs state they were visited by both Zimmerman and Singer at home several times, where they were advised to cash out nearly $114,000 in life insurance annuities despite "severe" withdrawal penalties. Those funds were signed over to Singer and Zimmerman, who allegedly invested the money in Network Services Depot, an Internet access business in California. But the suit contends the investment in Network Services - since shut down by the California Attorney General and the Federal Commission - were part of a "Ponzi scheme," where money from new investors was used to pay others. The suit also targets David and Peter Nickerson, identified as officials with Network Services Depot, and Sonya Vandekerkhof, listed as an associate with Estate Growth. The suit, which listed eight counts of wrongdoing, states David Nickerson, a national marketing director of Network Services, promised an annual return of 12 percent on the Wolfs' investments. But the suit contends there was a violation of the Michigan Uniform Securities Act because the defendants made false representations and committed fraud against the Wolfs, who said they were not "sophisticated investors" and relied on financial advice. The Wolfs also received a letter from Singer and Zimmerman on Jan. 13, which read in part that "...None of our clients have ever lost money utilizing our advice and we promise you will not be the first!"
|
|
