MINNEAPOLIS, Oct. 10, 2008 (GLOBE NEWSWIRE) -- Zimmerman Reed announces it's filing of a class action lawsuit in the United States District Court for the District of Minnesota. This lawsuit is filed on behalf of more than one hundred individuals, including area pastors, schools, and founders and supporters of charitable and non-profit organizations. The named Plaintiffs in the action are two investment groups, called AI Plus and IOC; the two investment groups filed on behalf of the losses of their 110 members. The Complaint also is brought as a class action, on behalf of all other individuals and non-profits who invested in their transactions using Metro Gem, Inc. as its broker. The Class Action Complaint names Petters Group Worldwide, Petters Company, Inc. (PCI), Enchanted Family Buying Company, Nationwide International Resources, Inc., Thomas Joseph Petters, Robert Dean White, Deanna Coleman, Michael Catain, and Larry Reynolds, for violations of federal, state and common laws.
The complaint alleges that Petters and the other Defendants perpetrated a fraudulent scheme upon investors, in violation of the Racketeer Influenced and Corrupt Practices (RICO) Act, the Minnesota Prevention of Consumer Fraud Act, the Minnesota Unlawful Trade Practices Act, the Minnesota Deceptive Trade Practices Act, the Minnesota Uniform Securities Act, Fraudulent Inducement, Conversion, Accounting and Unjust Enrichment. A copy of the complaint is available online at www.zimmreed.com/petterslawsuit.
According to the Complaint, Defendants effectuated the fraudulent scheme by creating fictitious documents, provided to current and potential investors as evidence that PCI was buying and selling substantial goods and merchandise for a profit. These goods, however, never existed. The complaint also alleges that Defendants fraudulently pledged the non-existent goods and merchandise as security for the investments, so that investors believed their investments were secured.
Plaintiffs are predominantly investors from the Twin City community who are non-profit organizations, founders and managers of charitable organizations, pastors, faith-based schools and supporters who have strong ties to these organizations. Most of these individuals have served their community for decades. The investors and their families have suffered devastating financial losses as a result of Defendants' racketeering and illegal scheme to defraud. Many have lost their life savings. Defendants targeted Plaintiffs and illegally obtained Plaintiffs' money by using brokers and agents who were trusted and known to the charities and non-profit community. Plaintiffs seek to recover damages and other remedies under federal, state, and common law. The plaintiffs are represented by Zimmerman Reed, which has extensive experience in prosecuting investor actions involving financial fraud.
Zimmerman Reed's attorneys practice complex litigation in federal and state courts throughout the country. The Zimmerman Reed web site (www.zimmreed.com) has more information about our firm and cases. For more information, contact Carolyn Glass Anderson at (612) 341-0400.