In a recent court filing, multiple plaintiffs have lodged a civil action against JPA R/E Associates, L.P., The Estate of Joseph Pezzano, Bond, Pezzano & Etze P.C., Michele Gibson, and Paula Pezzano. The complaint was filed by Stephanie Andrews, Jose Datil, Edward Flach, Rosemary Geisler, Michael George, Joaquin Lopez, Francis Mallon, Mary Martin, Elizabeth McCormick, Michael McGoldrick, Jaime Rivera, Robert Ryan, Brian Roberts, and Leonard Schiendelman in the United States District Court for the Eastern District of Pennsylvania on May 31st. They accuse the defendants of orchestrating a scheme to defraud them out of more than $18.5 million.
The plaintiffs allege that Joseph Pezzano posed as a conservative financial advisor specializing in low-risk investments suitable for self-directed Individual Retirement Accounts (IRAs). According to the complaint, Pezzano misrepresented himself as a trustworthy advisor and misappropriated their funds for personal use. After his unexpected death on December 25th last year, the plaintiffs discovered that their investments were not as secure as they had been led to believe.
Following Pezzano's death, the plaintiffs reached out to JPA/BP&E for information about their accounts but were met with employees who claimed ignorance about Pezzano’s investment business. This response further fueled suspicions about the legitimacy of their investments. The complaint asserts that BP&E falsely denied any affiliation with JPA or involvement in Pezzano’s investment activities to conceal their collective roles in defrauding the investors.
The plaintiffs' claims include violations under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 against several defendants including The Estate of Joseph Pezzano and BP&E. They also accuse these parties of fraudulent misrepresentation and breach of fiduciary duties among other charges. The plaintiffs are seeking injunctive relief to prevent further transfer of their funds or assets purchased with those funds. Additionally, they request compensatory damages exceeding $18.5 million along with punitive damages and attorneys’ fees.
The case is being overseen by Judge CMR under Case ID No. 2:24-cv-2371.