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For Immediate Release
March 27, 2006
Media Contact:
Kevin Enright 410-576-6357

CURRAN SEIZES ASSETS FROM $7 MILLION DOLLAR PONZI SCHEME AND OBTAINS A TEMPORARY RESTRAINING ORDER AGAINST FELON AND HIS COMPANY

Maryland Attorney General J. Joseph Curran, Jr., announced today that his office’s Securities Division has obtained a temporary restraining order against a convicted felon and his Baltimore County based company, charging them with violating Maryland’s securities laws by operating a fraudulent investment scheme involving in excess of $7 million.

According to the order (click to view), issued by Circuit Court Judge Ruth Ann Jakubowski, all assets of David M. Robinson and his company Liberty Trade International, Inc. (“LTI”), of 9331 Owings Choice Court, Owings Mills, MD and 2 East Rolling Crossroads Road, #251, Baltimore, MD, are temporarily frozen and a temporary receiver has been appointed to take control of the company and its assets.

Curran’s Securities Division alleges that Robinson and LTI violated Maryland’s securities laws by operating a ponzi scheme, offering and selling unregistered investments, and acting as unregistered securities brokers. The pleadings (click to view complaint | affidavit )allege that more than 400 active investors participated in Robinson’s and LTI’s investment program and that Robinson and LTI offered unregistered securities, in the form of promissory notes, since September 2004. The complaint also alleges that investors were told that their investments were backed by investments in real estate and in a real estate investment trust, with Robinson personally guaranteeing the promised returns of as much as 20% within 60 days. It appears that most of the money coming into the program was used to pay other investors and to support Robinson’s lavish personal expenditures such as four cars, including three new Mercedes within seven months, jewelry, a mink coat, furniture and collectibles.

“We brought an injunctive action for an asset freeze and receivership in this case to protect investors’ monies and to stop Robinson’s solicitation of additional investors,” said Attorney General Curran. “By placing LTI and Robinson into receivership, we can trace the funds in this scheme and preserve the remaining assets for investors.”

Curran emphasized that the Securities Division’s investigation of this matter is continuing and urges anyone who invested funds with David M. Robinson or Liberty Trade International, Inc., or who has information concerning that investment program, go to www.libertytradereceiver.com.

Curran reminded investors to call the Securities Division at 410-576-6360 before they invest to find out whether their investment adviser, broker and securities are registered. Even when an investment program looks reasonable, and friends and family trust the promoter, it’s better to take a few minutes to verify the status of the promoters.

 


 

   

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