Integrity Dominion Fund, a private Florida investment fund, recently filed a federal lawsuit this week accusing several firms and individuals of participating in an elaborate investment fraud scheme using its money. The company believes they were tricked into giving close to $4 million in supposedly low-risk loans to Lazy Deuce Capital Co. $1.5 million of these loans have allegedly not been paid.
Brian S. Baldwin, Frank W. Delahanty, and Brent L. Johnson are also named as defendants in the suit. The three men are being called principals and masterminds.
Two of the men, Baldwin and Delahanty, were previously accused in a federal lawsuit regarding allegations of a complex, million-dollar fraud scheme which involved false bank records. The case was later settled for undisclosed terms.
According to the suit, Baldwin described Lazy Deuce as a company able to produce short-term, high-interest loans to companies with unique collateral that would normally go untouched by other financial institutions. According to the suit, “”Baldwin claimed to be an expert in this area, and Lazy Deuce’s methods of collateralizing a wide range of assets were said to be highly sophisticated and closely guarded secrets.”
Another way Lazy Deuce created income was by financing lawsuits. According to the suit, this was a specialty of Johnson. The suit goes on to say that, “Johnson also claimed that he controlled much of this wealth not in his own name. As a result, he said that if he got divorced, his wife would get very little of his wealth.” Johnson’s proof of his wealth lies in his $8 million home and valuable art collection. Johnson also claims to have large amounts of precious metals and gems in a safe at home and stored in banks.
Soon before Lazy Deuce defaulted on its loans, it was announced that Baldwin was leaving the company “due to personal problems involving alcoholism and other issues.”
However, according to the suit, Baldwin started another investment company soon after leaving Lazy Deuce. The website of Stone Path Financial, Baldwin’s new company, had a very close resemblance to the website of Lazy Deuce and written on the website was, “powered by lazy Deuce Development Company.”
The three men are accused of securities fraud, breach of contract, misrepresentation, deceptive trade practices and racketeering.
The lawsuit accuses the defendants of breach of contract, securities fraud, misrepresentation, deceptive trade practices and racketeering.