The suit was brought by lead plaintiff Miker Willner on behalf of approximately 200 investors in various funds known as Queen City Investments, managed by Glen Galemmo, and claims Galemmo perpetrated one the largest financial frauds seen in Ohio, the Courthouse News Service based in Pasadena, Calif., reported Wednesday.
The plaintiffs allege Galemmo unlawfully induced them to invest in pension plans, retirement accounts, IRAs and other monies in a scheme that fraudulently appeared to be a simple investment in stocks, bonds and other secured instruments.
The complaint read, "Galemmo claims to have sold over $300,000,000 of membership interests ... since approximately 2002. On July 17, 2013, plaintiffs ... without any prior warning, received a shocking email from Galemmo announcing that as of July 17, 2013, 'Queen City Investments will no longer be in operation.' Galemmo further advised that he had been instructed by counsel not to speak or interact with any 'clients' and directed the recipients of his email to a special agent with the Internal Revenue Service," adding Galemmo has vanished, his offices have gone dark and the investors' money is unaccounted for.
The plaintiff request compensatory and punitive damages for securities violations, fraud, conversion and unjust enrichment, the news service reported.