Securities Lawyers Blog
The Division of Law of the New Jersey Bureau of Securities has filed suit and taken administrative action against George J. Bussanich, 55, of Park Ridge and his son, George Bussanich, 34, of Upper Saddle River alleging they engaged in securities fraud in connection with sales to 26 New Jersey of $3.5 million of unregistered notes. The Bussanichs allegedly used the investor funds for their own personal enrichment. New Jersey also alleged that George J. Bussanich also provided funds to various members of his family as well. New Jersey alleged that investor funds were used to purchase three homes and exotic vehicles including two Maseratis and a Ferrari.
According to New Jersey, investors were told that their money would be used for Metropolitan Ambulatory Surgical Center, LLC (Metro Ambulatory) and George J. Bussanich’s other companies. Contrary to its name, Metro Ambulatory is not a surgical center but rather a holding company controlled by George J. Bussanich. New Jersey stated that the notes sold to investors purchased carried a 6% to 8% annual rate of return.
Acting New Jersey Attorney General John J. Hoffman said “This was not a legitimate investment gone bad but a scam by the defendants to line their pockets and live the high life.” New Jersey filed an Order to Show Cause with the Court asking the Court to freeze the assets of the defendants, appoint a receiver to take title to and possession of defendants’ property, and review all financial books and records.