NEW YORK, Oct. 05, 2015 (GLOBE NEWSWIRE) -- Gana LLP announces the filing of an arbitration complaint before the Financial Industry Regulatory Authority (FINRA) alleging damages in excess of $3.7 million against Allstate Financial Services, LLC (Allstate) and the estate of Paul J. Godlewski (Godlewski). The complaint alleges improper supervision and selling away related to Godlewski’s fraudulent Ponzi scheme. Godlewski’s scheme has affected the retirement savings of around two dozen victims primarily in the Pennsylvania area. The complaint alleges that the firm failed to properly supervise and maintain compliance enforcement measures over Godlewski, one of Allstate’s registered representatives in violation of federal, state securities laws, and the financial industry’s rules and regulations. It is believed that these investors, many of whom use IRA or 401K proceeds, have lost substantially all of their investment.
"I believe there are more victims out there who are in need of help to assert their rights under the securities industry rules,” according to securities attorney Adam Gana. In April 2015, Godlewski was barred from the securities industry by FINRA after failing to respond to the regulator’s requests concerning his activities. In June 2015, Godlewski passed away. Shortly thereafter, many investors received letters from Godlewski’s estate asking for patience while the estate spends four to six months working on an accounting that has left investors in the dark.
In the complaint, it is alleged that Godlewski created a fictional persona of a brilliant venture capital fund manager complete with innovative trading algorithms and claims of $100 million in assets under management. To promote this persona Godlewski made appearances on television talk shows such as Money Matters purporting to be the president of Global Enterprise Investment Venture Capital a/k/a GEIVC, one of the funds that Godlewski sold to his victims. Over time Godlewski’s scheme is alleged to evolved to other funds including Tall Tree Note Fund I, LP (Tall Tree), another Godlewski fund, and 611 Swede Street LLC, a real estate property investment.
According to his FINRA Broker Check Report, Godlewski was a registered representative with Allstate from March 2005 through January 2015. At some point in 2008 it is alleged that Godlewski began his investment scheme and despite its duties to properly supervise Godlewski, Allstate allowed him to sell various false securities in connection with his scheme for the rest of his tenure with the firm. It is alleged that Godlewski used his status as a licensed securities broker as well as an insurance salesman with Allstate to earn the trust of his clients, solicit investors, and defraud them of over approximately $5 million in funds known to date.
According to the complaint filed with FINRA, Godlewski used his Allstate position to lull investors into a false sense of security. For instance, many investors contacted by Godlewski were provided with his Allstate and Godlewski Enterprises business cards and met with Godlewski at his Allstate office. It is further alleged that Godlewski specialized in targeting IRA and 401k accounts of his victims and would often claim that the investor was being charged exorbitant fees. Godlewski would then offer potential clients a 10% or 20% investment bonus over a period of time for moving their funds to GEIVC or Tall Tree. The complaint alleges that all of the Godlewski investments were made without appropriate risk disclosures.
Investors or others with knowledge of the events at Godlewski Enterprises who seek further information or want to explore their recovery rights are encouraged to contact Gana LLP. Gana LLP has significant experience representing clients that are the victims of securities and investment fraud. For more information about the firm and its services please visit: www.ganalawfirm.com. Please contact Adam J. Gana, Esq., or Adam J. Weinstein, Esq., Gana LLP, 345 Seventh Avenue, 21st Floor, New York, NY, 10001, Telephone: (212) 776-4252, E-Mail: agana@ganallp.com.