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- LAS VEGAS (CN) — A Nevada man claims he tried to save his multi-state lending
- business, but plaintiffs in a RICO complaint say he ran a multimillion-dollar
- Ponzi scheme.
- Lead plaintiff Scott Leslie claims DMA Financial Corp.'s CEO Alexander
- Zukovski ran his business as a Ponzi scheme, with help from defendant DMA
- president Darrin Landau.
- They are among nine people and 11 corporations and LLCs that Leslie et al.
- sued on May 31 in Clark County Court. Four Zukovskis are named as defendants,
- as is the Alexander & Natasha Zukovski Revocable Family Trust.
- Leslie sued individually and as a trustee of the Lawson Paragould Trust, as
- managing member of Paragould LLC, and derivatively on behalf of BGL
- Investments, which invested in DMA Financial. He says the plaintiffs loaned
- more than $2.5 million to DMA to try to keep it going.
- The lengthy complaint quotes a long email Zukovski sent to investors in April,
- saying he did not try to deceive anyone, but only wanted the company to
- survive and not let anyone down.
- "This was my deep, dark secret, which I thought I would make work without
- "fail, Zukovski wrote, according to the complaint. I kept everyone in my life
- "in the dark from how bad it really was. My wife didn't know. My father didn't
- "know. Darrin didn't know. You didn't know. I didn't want to fail in anyone's
- "eyes and fought to the last moment to make something happen to return the
- "business to the way it was.
- Zukovski opened the business as a payday lender, then as an installment-loan
- lender in several states, according to the complaint. Leslie claims, among
- other things, that DMA Financial is holding more than $1.5 million in notes
- and loans secured by at least three trust deeds, which should belong to BGL
- and its owners and investors.
- Leslie says he and others invested in BGL, which loaned their money to DMA to
- issue loans, and that DMA appeared to be a profitable business for several
- years.
- That changed no later than 2013, Leslie says, when Zukovski directed DMA staff
- "to falsely treat money loaned to or invested in DMA, by its lenders and
- investors, as revenues earned by DMA, from its customers, on the books and
- financial reports."
- At Zukovski's direction, Leslie says, workers at DMA offices in Las Vegas
- and/or Henderson "altered documents and digital reports, created fraudulent
- reports, and mis-utilized various software programs to create forged and
- fraudulent apparent .pdf copies of purported bank statements and other
- financial records to cause fraudulent reports and false information to be
- provided" to investors.
- Income and revenue were "grossly overstated" in the fraudulent documents,
- Leslie says. He says the frauds were run because DMA had lost its ability to
- collect loan payments via automatically debited payments, commonly known as
- ACH accounts.
- Public entities and/or private third parties in 2013 restricted DMA's ability
- to process electronic payments, which "rendered it almost impossible" for DMA
- to collect the "vast majority" of loan payments owed, Leslie says.
- But rather than inform investors, Zukovski concealed the lost revenue "via
- fraudulent schemes" and continued to accept new loans from investors and renew
- old loans and notes, according to the complaint.
- The continuing deceptions caused BGL to renew DMA's debts and prevented BGL
- from demanding payment or foreclosing on the securities used as collateral to
- cover the loans. Instead of using the invested money as intended, Zukovski
- distributed it through several associated companies he owned or operated,
- which in turn transferred the money to other entities for their own purposes,
- according to the complaint.
- Leslie says Zukovski also put family members on DMA's payroll, but did nothing
- to earn the money and benefits, and created false documentation to conceal
- illegal activities.
- To maintain a positive bank balance, Leslie says, Zukovski et al. deposited
- investors' money into DMA bank account to cover payments that borrowers owed
- on their loans. The check-kiting scheme eventually fell apart, leaving a
- negative balance of more than $250,000 in a Wells Fargo Bank account owned by
- DMA, the complaint states.
- In addition to the $2.54 million the plaintiffs loaned to DMA, other investors
- loaned DMA "substantially in excess of $10 million," according to the
- complaint.
- In April, Zukovski finally admitted it, in the email that began: "This is not
- how i wanted it to go, but this is where it went," according to the complaint.
- "Two years ago, the whole industry's ACH was shot down for two months. During
- that time, we lost a huge amount of our money on the street, because we
- couldn't collect. Once we got back up and running, I tried to do everything I
- could to build up the book again. The more we borrowed, the deeper it got."
- Zukovski wrote that he did not pay himself anything in the final 1½ years, put
- all his money into DMA, emptied his parents' bank and life insurance accounts
- and maxed out their credit cards, and took all the money his wife's parents
- had, to "make sure that every investor, every partner, every bill gets paid."
- The mail, as quoted in the lawsuit, ends: "I want's [sic] acting maliciously.
- I didn't mean to hurt any body. I know I hurt a lot of people who cared about
- me and for whom I cared. I am sorry."
- Leslie doesn't buy it. He seeks damages and punitive damages for RICO
- violations, fraud, embezzlement, conversion, unjust enrichment, breach of
- fiduciary duty, conspiracy, deceptive trade and bad faith.
- Named as defendants are Alexander Zukovski and his wife Natasha, Gregori
- Zukovski, Evelina Zukovski, the Alexander & Natasha Zukovski Revocable Family
- Trust, DMA Financial, Darrin Landau, Forlex Sales, Tri-State Lending Fund, Old
- Country Holdings, Glaz Inc., Global Process Ventures, ALZ LLC, LV Research and
- Development, Kanoah Investments and Ark Investments International.
- The plaintiffs are represented by G. Mark Albright with Albright, Stoddard,
- Warnick & Albright, who was not available by telephone after hours Monday.
- A phone number for customer inquiries on the DMA Financial Web page no longer
- is in service.
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