Maryland officials are taking action to protect consumers and investors from putting their money in the wrong hands.
The Maryland Securities Division, an office under the Attorney General’s umbrella, brought claims against Prosperity Partners Inc. and Prosperity Medical and Health LLC on Nov. 26, alleging scheme-like tactics. Allegedly, the companies solicited investments promising a monthly return of 6% a month, or an annual return of 72%.
These companies attracted $28.9 million in investments, mostly from Cameroonian and Nigerian communities, and early investors appear to have received just under $12.4 million in payments on their investments. However, these new investments were being used to pay back old investors. They have been fined $17.2 million and both companies are currently poised for bankruptcy.
“When Marylanders give their hard-earned money to companies, they trust that it will be protected and used wisely. Investments are made with the hope of a better future, and companies that put hardworking families’ futures at risk will be held accountable,” said Maryland Attorney General Anthony Brown in a statement announcing the court decree. “We will continue to protect Maryland investors by holding fraudsters accountable.”
One social media user, replying to Brown’s announcement of the lawsuit wrote: “Accountability at all costs.”
Furher, the Consumer Protection Division of the Attorney General’s Office’s claim was affirmed on Dec. 6 by Circuit Court Judge Krystal Q. Alves for unfair and deceptive practices by Finish Werks Corp. and Finish Werks Custom Builders, Inc. Allegedly, these companies used payments for personal expenses and failed to pay subcontractors and correct serious defects in their homes.
Owner William Karl “Harris” Woodward is being held liable for over $950,000 in fines.
“Purchasing a home is one of the most important investments a person can make. Maryland families should be able to trust that businesses will honor that investment by delivering safe, secure homes,” said Brown. “My office is committed to holding companies accountable and ensuring that Marylanders’ hard-earned money is not taken without the promise of a home being fulfilled.”
