International Fraud and Racketeering Case Handled By BG Law’s Nick Rozansky Ends In $3.4 Million Judgment To Client

BG Law attorney Nick Rozansky successfully prosecuted an international RICO and fraud matter against a group of individuals and a business that defrauded an investor. The investor, who was presented with due diligence, a prospectus, and significant false documentation backing up the business, was led to believe that he was investing in an internet start-up venture. Within a short period of time, the defendants had $3.6 million of the investor’s money, but the funds were not used for a start-up internet venture. In reality, and unbeknownst to the investor, the funds were used by the defendants to operate an international operation wherein “escorts” were transported to European and Middle-East Countries, and the defendants collected commissions from the escorts. Following aggressive litigation, which included extensive forensics, multi-state discovery, and even the deposition of an ex-FBI Special Agent, Defendants agreed to re-pay the client/investor in a settlement in which there was an admission of the fraud, and which was secured with a stipulated judgment.

Defendants made the first payment on the settlement.  However, when Defendants failed to pay the next portion of the settlement, and judgment was to be entered, Defendants relied on case and statutory law to argue that the settlement was impermissible and contained an illegal liquidated damage provision. In the end, the United States District Court ruled for BG Law’s client, and entered judgment in his favor for $3.445 million, which represents the total balance due from Defendants to the investor/client, plus attorneys’ fees in having the judgment entered.