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FRESNO ARMENIANS TO GET COMPENSATION IN FRAUD CASE
PanARMENIAN.Net
August 6, 2011 - 14:02 AMT
PanARMENIAN.Net - Two senior officers of a defunct northwest Fresno
business must pay $46.5 million to more than 1,200 victims of an
alleged Ponzi scheme, a jury ruled Friday in Fresno County Superior
Court.
But the victims - many of them from Fresno's Armenian-American
community - won't ever get full restitution. The defendants likely
don't have that much cash or could be hiding their assets, a lawyer
for the victims said.
"They will get something back," attorney Ara Jabagchourian said. "But
it will be pennies on the dollar."
Jurors deliberated two days before finding Dan Ramirez, president of
HL Leasing Inc., and Andy Fernandez, the company's chief financial
officer, liable.
The jury verdict in the class-action suit came three days after Judge
Donald Black found HL Leasing Inc., Heritage Pacific Leasing and Air
Fred LLC also liable for defrauding the victims.
The three companies were created by John W. Otto, the alleged
mastermind of the Ponzi scheme, but he committed suicide in 2009.
The jury found Ramirez liable under the theory of fraudulent
concealment and aiding and abetting the fraud. Fernandez also aided
and abetted in the fraud, the panel concluded.
John Otto founded HL Leasing at Shaw and Valentine avenues in 2001.
Over the years, he and his employees fraudulently enticed investors
to lend HL Leasing money by telling them that he was buying American
Express lease agreements at a discount. In return, the investors
would get monthly payments on their loans.
Jabagchourian and co-counsel Donald Fischbach said Ramirez used
longtime investors to vouch for the company's success to prospective
clients. Ramirez also falsely told the prospects that the company
was registered with the California Department of Corporations.
Many of the Fresno victims are members of St. Paul's Armenian Church
and Holy Trinity Armenian Apostolic Church. Once the churchgoers
learned that fellow parishioners were making money, "it spread by
word of mouth," Jabagchourian said, Fresnobee reported.
PanARMENIAN.Net
August 6, 2011 - 14:02 AMT
PanARMENIAN.Net - Two senior officers of a defunct northwest Fresno
business must pay $46.5 million to more than 1,200 victims of an
alleged Ponzi scheme, a jury ruled Friday in Fresno County Superior
Court.
But the victims - many of them from Fresno's Armenian-American
community - won't ever get full restitution. The defendants likely
don't have that much cash or could be hiding their assets, a lawyer
for the victims said.
"They will get something back," attorney Ara Jabagchourian said. "But
it will be pennies on the dollar."
Jurors deliberated two days before finding Dan Ramirez, president of
HL Leasing Inc., and Andy Fernandez, the company's chief financial
officer, liable.
The jury verdict in the class-action suit came three days after Judge
Donald Black found HL Leasing Inc., Heritage Pacific Leasing and Air
Fred LLC also liable for defrauding the victims.
The three companies were created by John W. Otto, the alleged
mastermind of the Ponzi scheme, but he committed suicide in 2009.
The jury found Ramirez liable under the theory of fraudulent
concealment and aiding and abetting the fraud. Fernandez also aided
and abetted in the fraud, the panel concluded.
John Otto founded HL Leasing at Shaw and Valentine avenues in 2001.
Over the years, he and his employees fraudulently enticed investors
to lend HL Leasing money by telling them that he was buying American
Express lease agreements at a discount. In return, the investors
would get monthly payments on their loans.
Jabagchourian and co-counsel Donald Fischbach said Ramirez used
longtime investors to vouch for the company's success to prospective
clients. Ramirez also falsely told the prospects that the company
was registered with the California Department of Corporations.
Many of the Fresno victims are members of St. Paul's Armenian Church
and Holy Trinity Armenian Apostolic Church. Once the churchgoers
learned that fellow parishioners were making money, "it spread by
word of mouth," Jabagchourian said, Fresnobee reported.