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West Boylston 'Developer' Accused Of Bilking Investors

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  • West Boylston 'Developer' Accused Of Bilking Investors

    WEST BOYLSTON 'DEVELOPER' ACCUSED OF BILKING INVESTORS
    Scott J.

    http://www.telegram.com/article/20110801/NEWS/110809967/-1/NEWS04
    Aug 1, 2011

    A West Boylston man is accused of bilking three-quarters of a million
    dollars from three people in development deals and using the cash to
    take trips to France and gamble, according to the secretary of the
    state's office.

    An administrative complaint has been filed in the Securities Division
    against Edward Kooyomjian Sr., charging him with selling unregistered
    securities and acting as an unregistered agent. Officials are seeking
    a full accounting of securities sold to the investors, compensation
    to the investors for losses and a cease-and-desist order.

    "This case offers an example of the damage affinity fraud can cause,"
    Secretary William F. Galvin said in a prepared release. "Not only
    did these investors lose their money on what they thought to be an
    investment, but they were betrayed by someone they had every reason
    to trust."

    The administrative complaint is a civil complaint and can eventually
    end up with a hearing officer.

    Officials accuse Mr. Kooyomjian of using his knowledge and relation to
    Worcester's Armenian-American community to prey on potential investors.

    A woman, a widow with Alzheimer's disease, was friends and a former
    business associate with Mr. Kooyomjian. She allegedly gave him more
    than $400,000 from 2003 to 2008 to invest in two ventures: Leicester
    Estates Corp., and Grandview Shoppes of Leicester Inc., the secretary
    of state's office said. Mr. Kooyomjian established those ventures to
    develop parcels in Leicester along Route 56.

    Two years ago the woman's daughter brought a suit against the West
    Boylston man in Worcester Probate Court. He was ordered to repay
    $381,200 after the court found he used the cash to gamble. He is in
    default on that order.

    The widow's brother was another investor and gave Mr. Kooyomjian
    $105,000 - his life savings - to invest in the 67 South Main Street
    Leicester Corp. Another investor is friends with the widow's brother.

    He allegedly invested $234,750 in Domain Enterprisers, an endeavor by
    Mr. Kooyomjian to develop the old Blue Jay Restaurant site in Sutton.

    Authorities found between 2006 and 2008, Mr. Kooyomjian wrote 44
    checks totaling $73,500 from a "contractor account" into which he
    deposited the investors' checks.

    The checks were made to Foxwoods Resort and Casino. Mr. Galvin's
    office also alleges Mr. Kooyomjian made almost 40 withdrawals from
    ATM machines totaling $28,569 and used the money for trips to France
    and Monte Carlo.




    From: A. Papazian
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