Fresh evidence that 1Point lawsuits may haunt the courts for years: A lawsuit filed here yesterday in federal district court says 1Point Solutions founder Barry Stokes, who is in jail awaiting trial on charges of embezzlement and fraud, was assisted in stealing and mishandling $7 million in clients' funds by an accomplice, Pittsburgh-based securities broker-dealer Mid-Atlantic Capital Corp.
The action charging MACC with knowingly abetting Stokes in fraud and violations of securities laws was taken by eight financial advisors and other businesses, including these locals:
Heritage Equity Group, Mastrapasqua Asset Management Inc., The Hamilton-Ryker Group, and Colbert & Winstead. The out-of-state plaintiffs who have joined the action are: Georgia-based EFS Inc.; Jimbo's Natural Family Inc. and nonprofit Abco Services Inc., both based in California; and Washington State residents Deborah Niedermeyer and Brian Allen.
Court papers say $6 million of the disputed funds were transferred from Heritage Equity, which would make them the biggest potential loser. This lawsuit follows one the same group filed last month against AIG Financial Advisors for $4.9 million.
The plaintiffs argue they entrusted assets from their respective retirement plans to Stokes, who from the outset "intended to misappropriate" their funds and illegally use the resources for his own purposes. Court documents describe more than $6 million in transfers to a number of agents, apparently to purchase additions to Stokes' now-legendary art collection.
They further describe MACC as having allowed Stokes' firm to transfer plaintiffs' funds to a 1Point 401k, from which Stokes, himself, allegedly extracted moneys as he saw fit.
MACC is accused of having enabled Stokes in these and other ways, without having first obtained documented confirmation from the individual plaintiffs, which they say was required by their asset-management agreements with 1Point and MACC.
Plaintiffs' lawyers thus far include Naill Falls and John Veach of Falls & Veach; and, Dianna Shew and Elizabeth Ferguson of Stites & Harbison.
- ALEX B FRUIN INHERITANCE TRUST; CANDACE F STEFANSIC INHERITANCE TRUST; CANDANCE F STEFANSIC INHERITANCE TRUST; FRUIN, ALEX B TRUSTEE; FRUIN ALEX B INHERITANCE TRUST; STEFANSIC, CANDACE F TRUSTEE; STEFANSIC CANDACE F INHERITANCE TRUST; STEFANSIC CANDANCE F INHERITANCE TRUST
- ROSS, BRIDGETT D
- COOKE, ETHEN LANYARD TRUSTEE; COOKE, ETHEN LEWIS ESTATE
- JACOBS, JESSICA ALEXANDRA; JACOBS, ERIKA BESS