A belief has sued businessman, Brock Flagstad, over allegedly misappropriating over $2 million in funds that have been purportedly designated for
A belief has sued businessman, Brock Flagstad, over allegedly misappropriating over $2 million in funds that have been purportedly designated for cryptocurrency buying and selling.
Regardless of Flagstad soliciting the funds for the aim of digital asset buying and selling, the James Streibich Revocable Belief accuses the businessman of siphoning cash from the funding to gas an exorbitant way of life involving personal jets and luxurious automobiles.
Businessman accused of misappropriating over $2M
The grievance has been introduced towards each Flagstad individually, and towards seven corporations operated by the businessman — levying allegations of fraud, theft, conspiracy, breach of contract, and breach of fiduciary obligation.
The belief asserts that Flagstad reached out to its trustee, James Streibich, in Might 2018 to pitch an funding that may be utilized by his agency Folding Gentle’s “proprietary monetary buying and selling platform.”
In alternate for a $2 million funding, Streibich claims the belief was assured a most popular curiosity in Folding Gentle and knowledgeable by Flagstad’s legal professional that the funds would completely be used for buying and selling.
Nonetheless, the belief claims that inside simply weeks of its funding, Flagstad started “siphoning buying and selling capital the belief invested with Folding Gentle to exterior banking accounts and his different ventures.”
Flagstad allegedly requested $200Okay mortgage and fled to Georgia
After Folding Gentle’s buying and selling crew left the agency in 2018 to start out a brand new firm, the belief states it accepted a request from Flagstad for a $200,000 line of credit score.
Within the Summer time of 2019, the belief claims that Flagstad stopped making curiosity funds on the mortgage, moved to the state of Georgia, and have become “more and more unavailable.”
Flagstad allegedly operates 17 corporations from the identical tackle in Chicago, with the plaintiffs accusing him of perpetrating related schemes focusing on different Chicago-based buyers.
“Flagstad has solicited hundreds of thousands of {dollars} in personal fairness funds for Flagstad corporations from quite a few outstanding Chicago-area buyers,” the grievance reads.
Funding capital presumably used to fund lavish way of life
Streibich claims to own banking paperwork exhibiting at the least $849,000 that had been wired from Folding Gentle to his private checking account.
The belief insinuates that a few of the funds it invested could have been used to assist exorbitant purchases, with the declare asserting that “Flagstad has a rapacious private want for money to assist his lavish way of life of personal jets and costly automobiles.”
The belief is searching for injunctive reduction and compensation for damages.
Flagstad denies allegations
The businessman’s legal professional, Stan Sneeringer, informed Regulation360 that the allegations towards Flagstad are false they usually intend to defend the case “vigorously.”
“Anybody can allege something they need in a grievance, notably the place, as right here, the allegations are made ‘on data and perception.’ It’s one other matter to show these allegations in a courtroom of regulation,” he added.