Tweet
WEST BOYLSTON 'DEVELOPER' ACCUSED OF BILKING INVESTORS
Scott J.
http://www.telegram.com/article/20110801/NEWS/110809967/-1/NEWS04
Aug 1, 2011
A West Boylston man is accused of bilking three-quarters of a million
dollars from three people in development deals and using the cash to
take trips to France and gamble, according to the secretary of the
state's office.
An administrative complaint has been filed in the Securities Division
against Edward Kooyomjian Sr., charging him with selling unregistered
securities and acting as an unregistered agent. Officials are seeking
a full accounting of securities sold to the investors, compensation
to the investors for losses and a cease-and-desist order.
"This case offers an example of the damage affinity fraud can cause,"
Secretary William F. Galvin said in a prepared release. "Not only
did these investors lose their money on what they thought to be an
investment, but they were betrayed by someone they had every reason
to trust."
The administrative complaint is a civil complaint and can eventually
end up with a hearing officer.
Officials accuse Mr. Kooyomjian of using his knowledge and relation to
Worcester's Armenian-American community to prey on potential investors.
A woman, a widow with Alzheimer's disease, was friends and a former
business associate with Mr. Kooyomjian. She allegedly gave him more
than $400,000 from 2003 to 2008 to invest in two ventures: Leicester
Estates Corp., and Grandview Shoppes of Leicester Inc., the secretary
of state's office said. Mr. Kooyomjian established those ventures to
develop parcels in Leicester along Route 56.
Two years ago the woman's daughter brought a suit against the West
Boylston man in Worcester Probate Court. He was ordered to repay
$381,200 after the court found he used the cash to gamble. He is in
default on that order.
The widow's brother was another investor and gave Mr. Kooyomjian
$105,000 - his life savings - to invest in the 67 South Main Street
Leicester Corp. Another investor is friends with the widow's brother.
He allegedly invested $234,750 in Domain Enterprisers, an endeavor by
Mr. Kooyomjian to develop the old Blue Jay Restaurant site in Sutton.
Authorities found between 2006 and 2008, Mr. Kooyomjian wrote 44
checks totaling $73,500 from a "contractor account" into which he
deposited the investors' checks.
The checks were made to Foxwoods Resort and Casino. Mr. Galvin's
office also alleges Mr. Kooyomjian made almost 40 withdrawals from
ATM machines totaling $28,569 and used the money for trips to France
and Monte Carlo.
From: A. Papazian
Scott J.
http://www.telegram.com/article/20110801/NEWS/110809967/-1/NEWS04
Aug 1, 2011
A West Boylston man is accused of bilking three-quarters of a million
dollars from three people in development deals and using the cash to
take trips to France and gamble, according to the secretary of the
state's office.
An administrative complaint has been filed in the Securities Division
against Edward Kooyomjian Sr., charging him with selling unregistered
securities and acting as an unregistered agent. Officials are seeking
a full accounting of securities sold to the investors, compensation
to the investors for losses and a cease-and-desist order.
"This case offers an example of the damage affinity fraud can cause,"
Secretary William F. Galvin said in a prepared release. "Not only
did these investors lose their money on what they thought to be an
investment, but they were betrayed by someone they had every reason
to trust."
The administrative complaint is a civil complaint and can eventually
end up with a hearing officer.
Officials accuse Mr. Kooyomjian of using his knowledge and relation to
Worcester's Armenian-American community to prey on potential investors.
A woman, a widow with Alzheimer's disease, was friends and a former
business associate with Mr. Kooyomjian. She allegedly gave him more
than $400,000 from 2003 to 2008 to invest in two ventures: Leicester
Estates Corp., and Grandview Shoppes of Leicester Inc., the secretary
of state's office said. Mr. Kooyomjian established those ventures to
develop parcels in Leicester along Route 56.
Two years ago the woman's daughter brought a suit against the West
Boylston man in Worcester Probate Court. He was ordered to repay
$381,200 after the court found he used the cash to gamble. He is in
default on that order.
The widow's brother was another investor and gave Mr. Kooyomjian
$105,000 - his life savings - to invest in the 67 South Main Street
Leicester Corp. Another investor is friends with the widow's brother.
He allegedly invested $234,750 in Domain Enterprisers, an endeavor by
Mr. Kooyomjian to develop the old Blue Jay Restaurant site in Sutton.
Authorities found between 2006 and 2008, Mr. Kooyomjian wrote 44
checks totaling $73,500 from a "contractor account" into which he
deposited the investors' checks.
The checks were made to Foxwoods Resort and Casino. Mr. Galvin's
office also alleges Mr. Kooyomjian made almost 40 withdrawals from
ATM machines totaling $28,569 and used the money for trips to France
and Monte Carlo.
From: A. Papazian