Unknown to Plaintiff, DSII’s attorney Gregory M. Burgee (“Burgee”), Secretary/Treasurer Bruff J. Procter (“Procter”), and alleged first investor Charles R. Longo (“Longo”) were engaged in numerous fraudulent interwoven and overlapping schemes, such as money laundering and conspiracies to commit federal bankruptcy fraud, that were perpetrated by Longo, a white-collar criminal who had 2,000 documented victims in Maryland and Virginia.
These bankruptcy fraud schemes were committed by concealing assets from creditors by diverting Longo’s personal assets and the assets of his corporations for which bankruptcy had been filed into legitimate businesses, such as DSII, and real estate investments throughout Maryland. The schemes perpetrated against Plaintiff and DSII were as follows:
In or about January 1991, Burgee, Procter, and Longo induced Plaintiff to believe that Longo was an accredited investor (an individual with an annual income of not less than $200,000.00 and a net worth of not less than $1,000,000.00) who had invested $15,000 into DSII.
Plaintiff as inventor, President, and major shareholder of controlling interest of DSII, having successfully introduced and interested numerous major “Fortune 100” and “Fortune 500” corporations in the emerging technology and inventions was unaware of Longo, Procter, Burgee, and the law firm of Miles & Stockbridge’s ongoing criminal activities.
In the Fall of 1993, just as DSII was on the verge of possibly signing two (2) potentially valuable licensing agreements for the technology Plaintiff had invented, Longo and Procter, needing money to support one (1) of their rapidly-collapsing fraudulent securities schemes, conspired with three (3) DSII investors to fraudulently seize control of DSII. In the first of numerous extortion attempts, Longo, Procter, and the other DSII investors threatened to have Plaintiff arrested on unspecified criminal charges unless Plaintiff capitulated to their demand to turn over DSII corporate documents in his possession. Plaintiff complied.
After seizing control of DSII, Charles Longo was made President of DSII. At that point, Charles Longo and Procter had exclusive control of DSII’s checking account.
In furtherance of their criminal conspiracy, Charles Longo, Procter, Burgee, and Miles & Stockbridge induced three (3) investors to invest additional money in DSII.
Charles Longo and Procter then embezzled a portion of this money for their personal enrichment and to finance their sale of fraudulent securities.
On or about January 12, 1994, in order to cover up their embezzlement of DSII funds and to support their rapidly-collapsing fraudulent securities scheme, Longo and Procter devised a scheme to extort Plaintiff’s patent.
In this extortion attempt, Charles Longo, Procter, Hal P. Glick (“Glick”), Bruce A. Moore (“Moore”), Mark Sapperstein (“Sapperstein”), and Gilbert Sapperstein (“G. Sapperstein”) demanded that Plaintiff assign to DSII his patent and pending patent for the technology upon which DSII was based. Plaintiff refused to capitulate.
By February 1994, Longo, Procter, Moore, Robert E. Warfield (“Warfield”), Glick, Sapperstein, G. Sapperstein, and Burgee, frustrated by their failure to extort from Plaintiff his intellectual properties, and in furtherance of the conspiracy to extort “under color of law,” had their attorneys devise another scheme to defraud Plaintiff by filing a sham lawsuit against Plaintiff in another attempt to force Plaintiff to capitulate to their demand that he relinquish his ownership of the patent and patent pending upon which DSII was based.
This lawsuit, involving malicious prosecution, judicial abuse, and denial of due process, was filed against Plaintiff in a “good old boy” backwater kangaroo court in a district where the two (2) sitting judges were long-time personal acquaintances and political cronies of three (3) of the DSII investors and the investors’ law firm.
Plaintiff refused to capitulate to the extortion attempts and threats and instead initiated an investigation into Longo’s background.
Eventually this investigation mushroomed into a corruption investigation identifying federal and state law enforcement agencies and officials more interested in protecting their personal and political agendas and politically-well-connected Maryland businessmen who were involved in numerous federal racketeering activities and state criminal law violations.
With each of Plaintiff’s refusals to capitulate to the intimidation, threats, and extortion attempts brought about by the Defendants, the more the Defendants were forced to enact multiple fraudulent schemes and cover ups for their criminal activities, each one requiring greater participation by federal and state agencies to provide “under color of law” resources to protect the prominent and politically-well-connected Maryland businessmen to allow them to operate without restriction while committing numerous federal felony offenses.
UNDERLYING FACTS
Re: Longo/National Training Systems/Shippers’ Choice, Inc.
On or about October 15, 1993, shortly after Plaintiff received an extortion attempt from Longo, Warfield, Procter, Sapperstein, and G. Sapperstein, in which they threatened to have Plaintiff arrested on unspecified charges if he did not capitulate to their demand to turn over immediately all DSII corporate documents in his possession, Plaintiff initiated a personally-financed investigation into Longo and Longo’s business associates.
The investigation would not terminate until four (4) years later and would reveal Longo and his business associates’ extensive white-collar criminal activities that included complex numerous interwoven and overlapping fraudulent schemes.
The investigation was conducted in Maryland, Virginia, Washington D.C., New Jersey, New York, Texas, Georgia, Florida, Indiana, and Alabama.
Charles Longo, through his National Training Systems (“NTS”), which was a professional truck driver training school, had victimized approximately 2,000 (two thousand) students in Maryland and Virginia in a United States Department of Education student loan fraud scheme in the late 1980s.
Charles Longo and NTS are alleged by the Maryland Attorney General’s office to have defrauded NTS students of approximately $8 million in United States Department of Education student loan money.
In or about October 1990, Longo was indicted in Virginia on 46 (forty-six) counts of grand theft, arrested, and jailed for approximately 9 (nine) days in Maryland. Due to a technicality, the charges were dropped and Longo had records expunged.
By 1993, NTS in Virginia was closed as a result of numerous complaints.
Charles Longo reopened in Virginia in or about 1993 under the name Shippers’ Choice of Virginia. The company was registered under the name of other individuals to disguise Longo’s ownership. The opening of Shippers’ Choice of Virginia was financed with money Longo had obtained from an alleged securities fraud scheme.
In or about September 1990, NTS filed bankruptcy in Maryland, with debts of approximately $10,000,000.00 (ten million dollars), to use the protection of the bankruptcy courts against an intensifying investigation by the Maryland Attorney General’s office.
In connection with this bankruptcy, Longo and his associates made numerous fraudulent pre-petition and post-petition transfers of assets to defraud the NTS creditors. The NTS bankruptcy was dismissed in July 1992.
In or about November 1990, Longo and his wife (Linda) would jointly file personal bankruptcy in Maryland to protect themselves from personal liability with NTS and to use the protection of the bankruptcy courts against the intensifying investigation by the Maryland Attorney General’s office.
Charles Longo made numerous fraudulent pre-petition and post-petition transfers of assets to defraud his personal creditors. Longo and his wife would later split their case. Longo’s wife’s case and plan would be confirmed but Longo’s case would still be open in 1997.
By conducting fraudulent transfers to conceal cash and material assets to defraud the creditors of both the NTS bankruptcy and his personal bankruptcy, and then diverting these assets into legitimate businesses and real estate, Longo and his associates were able to finance a new corporation as a vehicle for the furtherance of numerous fraudulent schemes.
Longo’s new corporation, Shippers’ Choice, Inc. (“SCI”), was another alleged “professional truck driving school” which opened in Maryland on or about September 27, 1990.
Beginning in or about 1992, Longo/SCI, with the assistance of Washington Investments (“WI”), a corporation engaged in investment banking, would begin selling student loans in bundled offerings of $10,000.00 (ten thousand dollars).
This alleged fraudulent securities scheme would gross Longo/SCI/WI approximately $1,325,000.00 (one million, three hundred twenty-five thousand dollars).
This securities fraud scheme would collapse in late 1993/early 1994.
The money from the student loan offerings was to be used by SCI, a Maryland corporation, but Longo was diverting a portion of the money to finance the start up of Shippers’ Choice of Virginia.
Additionally, Longo is alleged to have been using money from these schemes for his personal enrichment rather than for corporate purposes.
Longo had personally fraudulently represented in writing to investors of these offerings that SCI was not a party to any litigation and that no litigation had been brought against SCI.
At the time Longo was making these statements, SCI was operating against two (2) cease-and-desist orders from the Maryland Higher Education Department and was continually involved in litigation with the state of Maryland.
In or about March 1993, Michael Dennis Beck (“Beck”), an associate of Longo’s involved in the alleged sale of the SCI fraudulent securities offerings, pled guilty to one (1) count of federal felony offense (wire fraud) and was incarcerated for 18 (eighteen) months on a charge unrelated to the alleged SCI securities offerings.
The SEC is alleged to have been unaware of Beck’s activities in the sale of the $500,000.00 (five hundred thousand dollars) fraudulent securities offerings made by Longo/SCI/WI until mid 1996.
In or about December 1994, SCI declared bankruptcy in an effort to evade liability for the fraudulent securities scheme.
Beginning in or about October 1993 and lasting until the present, DSII, the victim or prize corporation, would become a mere continuation of SCI, which was the continuation of NTS. Namely, all were vehicles through which Longo and his associates engaged in fraudulent activities.
With DSII, Longo and his associates would have absolute control of the potentially valuable technology and patent Plaintiff had invented and of DSII, a legitimate corporation Plaintiff had formed. Hidden behind this legitimate corporation, Longo and his associates would further their fraudulent and federal felony activities and parlay the money and assets from their previous fraudulent schemes into an ever-expanding collection of legitimate businesses, enterprises, and real estate. ""
Full Document and Source of This POST Click Below
http://marylandcorruption.com/rico1798.htm
Your United States Justice System Supports and PROTECTS these Criminals.
The Inventors well they are just lucky to be alive, heck with Justice or Rights to What they REALLY invented. Evidence, TRUTH - Does not seem to be a Factor in the US Judicial System.
Enough is Enough.
Expose Court Corruption, Stop Patent Theft and
the Corrupt Lawyers and Judges that ALLOW it and Participate in it...
The TRUTH - Facts Should Be the ONLY Defense Necessary.
the Courts, Judges, Lawyers SHOULD Not Be Above the Law.
We Can See from this Story that the United States Justice System has been allowing the Stealing of Inventions for Quite some time and Protecting the "Well Connected" Criminals in these Blatant and Obvious Thefts.
patent theft
Charles Longo, Inventor Donald Stone
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