2 ex-clients sue financial adviser Jackson - San Antonio Business Journal:

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million in Jackson bank loans that they allege they guaranteed or The loans arein default, and the lenders Guaranty Bank & Trus t Co. and — are demandintg payment from theJackson clients, retirecd local businessmen Lester Gold and Norman Pluss, according to the complaint filed June 5 in Denver Districyt Court. The plaintiffs say they co-signed a $2 milliomn Guaranty Bank note, and guaranteed a $1.5 million Steeld Street State Bankbusiness loan, according to the complaint. Gold and Pluss are alleging breach of bank loans and fraudulent and seek funds from Jackson and his busineszs entities to coverthe demands.
The Denver District Attorney’w Office said June 10 that it receivedx a second complaint against Jackson and has openeed a formal investigation into hisbusiness dealings, accordingy to spokeswoman Lynn Kimbrough. In another loan-related legakl action, is suing Jackson and his father, Theodord “Ted” Jackson, in Denver Districtt Court, alleging they defaulted on $3 milliobn in loans from the bank, according to the complainyt filedMay 19. Claims in the in addition to loan default, include breach of contract andcivi theft.
“He drew up this line of credit, basicallu hasn’t paid it back and hasn’rt responded to demands for payment,” said Jim Cage, an attorneyu at LLP who represents ColoradlBusiness Bank. The Gold/Pluss complaint is part of a Denvert District Court lawsuit filed againsyt Jackson in April by Colorado Securities CommissionerFred Joseph, allegingv Jackson has traded in securitiesd without a license. Denver attorney Scott Browningfof LLP, who representws Jackson in the told the Denver Business Journal the week of June 1 that Jacksomn approached the securities division, and is cooperatingt with the securities commissioner’s inquiry.
Browningt and another Jackson attorney, Phil Feigin at Rothgerber Johnson, didn’t return calls for comment for this Feigin served as Colorado securities commissionet from 1988to 1998. Jackson allegedly raised more than $30 milliob from investors in the past15 years, according to Joseph’es complaint. Court orders obtained by the securities commissioner in his suit prohibitr Jackson from disposing of or hidinhg assets and funds related tohis business, and appointe a receiver to find and preserve Jackso assets on behalf of his clients. But Jacksohn was allowed to continue tradingin securities, usinf funds other than his and his wife’s, according to the Receiver C.
Randel Lewis, managingb director at local management consulting firm CloysexsPartners LLC, is asking the court for greater powers to protect those assets, includingg the ability to issue subpoenas and take depositions. Lewids requested expanded powers because Jacksob allegedly has continued trading securities through variouws companieshe controls, and has removed his name as manager or membefr of some of those companies, so that the entitiesd aren’t affected by the receivership according to the receiver’s motion.
The motiomn further states Jackson told Lewis in interviewas that he used funds from subsequent investors to make payments toearliert investors, which is the “basic premise for a Ponzki scheme.” At the end of March, before Jackson’s assets were put into he allegedly drew $456,000 againsty his Guaranty Bank credit line, bringin g the total amount drawn on the note to $2 million, accordintg to the complaint by Gold and On April 28, the day his companies were put into Jackson transferred nearly $225,000 in funds between the bank account of three of his Lewis claims in his motion.
Gold and attorney, Rick Brown at in said he supports Lewis’ motion for greater “At this point, we’re simply trying to encourage the courtg to putits hands, and the receiver’s on all the assets there are, wherever they are. We want the judgew to see that more peoples need tobe protected,” Brown said. Othe Jackson clients also have sued the investment advisert in DenverDistrict Court, claiming he didn’t repau money he borrowed from them for investments. Thoss plaintiffs seek damages between $41,609 and $247,000.
Gold and Pluss allegs Jackson used their money and funds from other investords to buy and sell publicly traded principally through initial public offeringse and secondarymarket offerings, according to theirt complaint. In their complaint, the two plaintiffs also claim Jacksonled investors, including to believe they were his sole investors, and that he woulfd keep cash deposits on account with securitieas brokers to cover stock trades. The funds on deposity allegedly were toremain intact, changedf only by profits and losses from trades, and investore got monthly statements showing activity in theif accounts, including profits.
Gold and Pluse contend the monthly statementswere “a complete fabrication,” and that all statementd sent to Jackson clients were basically the “just slightly different to createw a different, yet similarly fictitious, profit picture,” according to theid complaint. The complaint further states moneyg Gold and Pluss gave Jackson for investin primarily was used to make payments to other investors or depositexd in accounts belonging to his family membersand