A Methuen licensing board member with Haverhill real estate ties is among those that allegedly defrauded Massachusetts investors with a gold-buying pyramid scheme.
Secretary of the Commonwealth William F. Galvin filed a civil suit this week against James V. Piemonte, treasurer, and others associated with Andover-based EmGoldex Team USA Inc. Piemonte, 6 Hawkes Brook Lane, Methuen, is a member of the Methuen Licensing Board. He is listed as a manager of Scott Management and Maintenance Co., associated with the (Joseph) Scott Companies, 12 Rogers Road, Ward Hill.
“EmGoldex is an illegal pyramid scheme disguised as a legitimate multi-level marketing company targeting investors both in Massachusetts and around the world,” the complaint said.
Besides Piemonte, the company is operated by Jonathan H. Seigler, president, formerly of Boston and now living in New Hampshire; and Methuen residents Matthew M. D’Agati, secretary and vice president; and Joseph Zingales, director. Galvin’s office said the group offered “securities in the form of memberships in a multi-level marketing program sponsored by EmGoldex.” It operated from offices at 16 Haverhill Street, Andover.
“Respondents, acting individually and collectively, fraudulently offered and sold unregistered and non-exempt securities in the Commonwealth without being registered as a broker-dealer, broker-dealer agent, investment adviser, or investment adviser representative,” the allegations read. Galvin’s office also “alleges that the offers and sales of securities were part of a pyramid scheme and Respondents’ promotion of such scheme defrauded Massachusetts investors.
The civil suit seeks to stop the group from acting as unregistered broker-dealers, agents and investment advisers; require an accounting of all proceeds received as a result of the alleged wrongdoing; return money to investors and pay an administrative fine.
On June 20, the group held a “Kick Off’ event at Wyndham Hotel, Andover, and advertised the event as the launch of EmGoldex Team USA, offering cash awards to potential investors.
You may see a presentation by D’Agati below.