On March 1, 2021, our client was awarded a judgment by the Supreme Court, Rockland County of more than $7.3 million based on defendants' fraudulent inducement of our clients into various financial investments, and their breach of their fiduciary duties to our clients.
The Basis of Our Clients' Claim for Fraudulent Inducement and Breach of Fiduciary Duty
More specifically, our clients claimed that defendants collectively colluded to induce plaintiff to invest with them, promising that by collateralizing our clients' funds towards a €300,000,000 credit line, the defendants would generate for plaintiff’s benefit annual profits of 20% - while simultaneously guaranteeing the safety of the principal investment.
But it was all a lie.
When the clients grew tired of not seeing the promised returns, they called on defendants – repeatedly – to provide an accounting for the substantial funds that plaintiff had invested. Plaintiff then demanded the return of their principal investment.
Tellingly, defendants dodged these questions, refusing to even return the principal investment that they indicated still remained in escrow.
Even worse, one of the defendants conceded that the linchpin for the initial investment – that it would be used toward securing a credit line – never happened, stating:
“Even though it was reported to me more than a year ago that adequate lines of credit existed, to date I have not seen evidence of any credit line developed by [co-defendants] for [your] transactions.”
What the Court Ruled
Ultimately, over the course of years of litigation, the defendants weren't able to provide the Court with a compelling, consistent explanation for what they did with our clients' funds, or why they failed to return our clients' principal investment when asked to do so. Indeed, as part of the award and judgment, the defendants were penalized heavily, at a rate of $3,500 per day, for the time they failed to honor their obligations to our clients.
