Monarch Investments, LLC vs Texas Economic Regional Center Holding Company (TERC) &

Views: 1141

PlaintiffsDefendants

Monarch Investments, LLC

vs.

Preview terc
Texas Economic Regional Center Holding Company (TERC)

The Lorenzana Law Firm, Khaled M. Sarhan, Nash Martinez, Lorenco, Inc, Wayne Cadena, Lucy Cadena, Fernando Aurrecoechea, Alejandro Aurrecoechea, Candice Aguirr,e United Pillars Group LLC

Filing Date:February 05, 2015

Case:MONARCH INVESTMENTS, LLC v. Texas Economic Regional Center Holding Co. and others

Jurisdiction:Federal District Court for the Western District of Texas

Status:Pending

Civil / Criminal:Civil

Cause(s) of Action:

Fraud

Misrepresentation

Securities Violations

Violation of California Labor Code Section 1102.5

Description:

The plaintiff claims that : Lorenzana Jr., the Aurrecoecheas and other Defendants had almost completely squandered and misappropriated Monarch’s investment for their personal gain over the past ten months. Of the $900,000 initial investment, less than $100,000 remained. During the months since Monarch’s initial investment, WMC had failed to generate any meaningful revenue (much less the $1.3 million projected for first year operations, which they had represented were being exceeded). WMC had no paying clients, no meaningful opportunities and nominal assets. In addition, Monarch now knows: Lorenzana Jr. had orchestrated various payments from WMC to his law firm (the Lorenzana Firm) for unauthorized expenses unrelated to WMC’s business operations (including one for a purported construction loan); Lorenzana Jr. and the Aurrecoecheas had authorized and paid Martinez an undisclosed commission of $18,000 for Monarch’s investment; Aguirre, Alejandro Aurrecoechea, and Cadena had siphoned WMC’s funds and paid themselves (through WMC’s management company UPG) salaries far in excess of those represented as part of the Business Plan. They had also hired Ms. Cadena (Cadena’s wife) as an office manager (a position not disclosed in the Business Plan) and paid her a salary well above any defensible market value, and which she knew was far more than could be justified as a legitimate exercise of business judgment. In addition, Fernando Aurrecoechea generated a substantial salary from WMC (again through a position not disclosed in the Business Plan and which he knew to be well above any defensible market value for the work he was actually doing). All of these defendants accepted these windfalls for months, all the while knowing that the company never generated any income or meaningful business.

Files
Aug
21
2015

MONARCH INVESTMENTS, LLC v. Texas Economic RC-Amended Complaint

MONARCH INVESTMENTS, LLC v. Texas Economic RC-Amended Complaint

MONARCH_INVESTMENTS__LLC_v._Texas_Economic_RC-A...
Attorneys, Regional Centers and Firms
Fritz, Byrne, Head & Gilstrap, PLLCDaniel H. ByrneTexas Economic Regional Center Holding Company (TERC)

Back


Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.