CASINO PLAN CALLED A SCAM BUSINESSMAN IS SUED BY STATE.Byline: Susan Abram Staff Writer The state Department of Corporations has filed suit against a Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. businessman, claiming he conned 25 investors nationwide out of $1.5 million for a bogus casino planned near Six Flags California, Valencia. The complaint filed in Los Angeles Superior Court claims Tom Kelly, a manager of First California Diversified Fund Diversified Fund A type of investment fund that contains a wide array of securities and is adequately diversified. A mutual fund classified as a "diversified fund" will actively maintain a high level of diversification in its holdings, thus reducing the amount of risk in the fund, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , used the names of three American Indian tribes to convince people to invest $25,000 a share for an interest in the casino. None of the tribes Kelly mentioned had authorized the use of their name in pamphlets he distributed, according to the complaint. And investors who tried to contact the tribes to research information about the casino were directed to a telephone number operated by Kelly, according to the complaint. ``We see investment scams that occur with regularity,'' said Susie Wong, spokeswoman for the Department of Corporations. ``The characteristics of this scam is unique in that he involved Native American tribes.'' Wong said the department is still waiting to hear from Kelly, who is charged with a total of 62 violations that include selling shares using untrue statements, according to the complaint. The state is seeking more than $1.5 million in restitution for the victims, but officials said more fines are possible. In pamphlets used to solicit investors, the casino was to be built on Oat Mountain, on land co-owned by Kelly and held in perpetuity Of endless duration; not subject to termination. The phrase in perpetuity is often used in the grant of an Easement to a utility company. in perpetuity adj. forever, as in one's right to keep the profits from the land in perpetuity. by the Santa Monica Mountains Conservancy The Santa Monica Mountains Conservancy is an agency of the state of California in the United States founded in 1979 and dedicated to the acquisition of land in the Santa Susana and Santa Monica Mountains and the Simi Hills, north and west of Los Angeles, for preservation as open . But conservancy spokeswoman Dash Stolarz said the agency doesn't own property in that area nor is it clear by Kelly's description where the property would be. She said the city and county of Los Angeles owns some property there, but there are no public roads that access the area. ``It is indeed a scam,'' Stolarz said. ``All the claims being made in this guy's brochures are bogus.'' Letters mailed to potential investors had said the San Fernando Band of Mission Indians, the Shasta Nation, and the Fort Independence Paiute Indian tribes would be involved in building the casino, but none of those tribes have federal recognition. ``The defendant (Kelly) failed to disclose that there are no Indian casinos or established reservations in Los Angeles County, therefore none of the tribes referred to in the offering circular Offering Circular An abbreviated prospectus for a new security listing. Delivered to individuals and brokerage houses, these documents are issued to arouse interest in the new issue. Notes: An offering circular allows investors to access information regarding a new issue. could have entered into an agreement with (First California Diversified Fund) to have a casino operate on the land adjacent to Six Flags Magic Mountain Six Flags Magic Mountain is an amusement park located just west of the Valencia neighborhood of Santa Clarita, north of Los Angeles. It opened on Memorial Day weekend on May 29, 1971 as Magic Mountain, by the Newhall Land and Farming Company,[1] ,'' according to the complaint. Also, only federally recognized tribes Federally recognized tribes are those Indian tribes recognized by the United States Bureau of Indian Affairs for certain federal government purposes. Description In the United States, the Indian tribe is a fundamental unit, and the constitution grants to the U.S. can be considered to open a casino, according to the complaint. California is home to more than 50 casinos operated by Indian tribes. Susan Abram, (818) 713-3664 susan.abram(at)dailynews.com |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion