JCS Enterprises, Inc. and T.B.T.I – SEC Charges with Fraud | Goodman & Nekvasil P.A. May Recover Investor Losses

JCS Enterprises, Inc. and T.B.T.I – SEC Charges with Fraud | Goodman & Nekvasil P.A. May Recover Investor Losses

Securities and Exchange Commission Charges JCS Enterprises, Inc. and T.B.T.I, Inc.

ACCORDING TO THE SEC: On April 7, 2014, the Securities and Exchange Commission filed an emergency action to halt a Ponzi scheme conducted by JCS Enterprises, Inc., T.B.T.I. Inc., and their respective principals Joseph Signore of West Palm Beach, Fla. and Paul L. Schumack II of Pompano Beach, Fla.  The complaint, filed in United States District Court for the Southern District of Florida, alleges that, from at least 2011 through the present, the defendants fraudulently raised at least $40 million from hundreds of investors nationwide through the ongoing sale of investments in Virtual Concierge machines (VCMs).  The defendants guaranteed exorbitant returns, ranging from 80 to 120% annually and up to 500% over the life of a three- or four-year investment contract.  Also, on April 7, 2014, Judge Donald M. Middlebrooks, U.S. District Judge for the Southern District of Florida, issued an order placing JCS and TBTI under the control of a receiver to safeguard assets, as well as other emergency orders, including temporary restraining orders and asset freezes.

According to the SEC’s complaint, JCS, T.B.T.I, Signore, and Schumack touted the VCMs as a revolutionary product and fail-safe investment.  The defendants promised to place and manage VCMs, which are ATM-like machines, at various locations to advertise products and services via touch screen, and print tickets or coupons, among other services.  They represented that advertising revenue would generate the guaranteed returns paid to investors, who did not have to take any additional steps to earn their money.  In reality, Signore, Schumack and their companies operated a Ponzi scheme, where, through numerous misrepresentations and omissions, they used new investor funds to make payments to earlier investors. 

In a parallel action, the U.S. Attorney’s Office for the Southern District of Florida announced criminal charges against Signore and Schumack.

The defendants promoted VCMs on the internet though YouTube videos, and promised to locate, place and manage the VCMs, as well as inform investors about the location and activity of their VCMs.  These representations were false.  The defendants did not place VCMs at anywhere near the rate of those purchased by investors.  Moreover, investors could not track their VCM’s activity, and the defendants did not provide investors with the location of their VCMs as promised.

The SEC’s complaint alleges that while operating the Ponzi scheme, Signore and Schumack also diverted more than $2.5 million to themselves and family members, and used money to fund other business ventures, for recreational purposes, and to satisfy financial obligations.  While the majority of investors stopped receiving their monthly payments in January 2014, the defendants continued to solicit investors.  Schumack continued lying to investors in an effort to generate more capital by providing a bulletin stating their last opportunity to invest was expiring at year end 2013.  Schumack later fabricated excuses to placate irate investors who were no longer receiving their returns, telling them their checks were forthcoming.  They were not.  When investors started complaining, JCS also continued its fraud by issuing a press release, posted on its website, claiming it was “investigating the matter” and TBTI had defrauded JCS.  

Investors in JCS Enterprises, Inc. and/or T.B.T.I, Inc. May Recover their Losses with Goodman & Nekvasil, P.A.

If you invested in JCS Enterprises, Inc. and/or T.B.T.I, Inc. Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors. 

All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years. 

There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.

If you incurred investment losses in JCS Enterprises, Inc. and/or T.B.T.I, Inc. and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.   

Investment Fraud Attorney, Stockbroker Misconduct Disciplinary Actions, Unsuitable Investment Advice, Investment Fraud, Churning, Misrepresentation and Omission of Material Facts, Elder Fraud, Unauthorized Trading, Theft, Selling Away, Unapproved Outside Business, Nationwide, PIABA, SEC, Securities Exchange Commission, NASD, National Association of Securities Dealers, NASDAQ, Dow Jones, Wall Street, New York Stock Exchange

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