Hey, look who is at the bar!
"Pair tied to alleged Ponzi artist sued" by Beth Healy, Globe Staff | June 17, 2010
A group of investors has filed a class-action lawsuit against two men who introduced clients to accused Ponzi artist Richard Elkinson.
The lawsuit, filed last month in Massachusetts Superior Court, alleges that Jay L. Fialkow and Jeffrey P. Ross failed to do adequate due diligence on Elkinson, a Framingham man who told investors he was raising money to finance a uniform business. In fact, the business never existed.
Related: Massachusetts Man Madoff to Mississippi
Elkinson was arrested in Mississippi last January on charges that he defrauded 130 people out of $29 million. He is facing an 18-count indictment and is being held at a Rhode Island prison. He also is facing civil charges brought by securities regulators.
The lead plaintiff in the class action is Newton resident Sidney L. Sherter, a trustee for three trusts that allegedly lost money in the scheme. The lawsuit says the trusts lost hundreds of thousands of dollars. A spokeswoman for Ross and Fialkow said the case has no merit.--more--"
