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LEGAL NEWSLINE

Saturday, April 20, 2024

Conn. loan company owner to pay restitution

Blumenthal

HARTFORD, Conn. (Legal Newsline) - Following a judgment won by Connecticut Attorney General Richard Blumenthal, a Hartford loan company owner has been compelled to pay restitution and penalties for allegedly taking money and failing to provide promised loans and services.

Michael Petriccione, under terms of the settlement, has been banned from the commercial loan business in Connecticut and is obligated to pay $165,150 in restitution to 13 consumers and $65,000 in penalties to the state.

"This settlement compels Mr. Petriccione to pay restitution - money back - to consumers he so cruelly and callously defrauded," Blumenthal said.

"He lured customers with bogus endorsements from prominent people, deceiving them into paying more than $165,000 for services never rendered. This scam badly battered budding entrepreneurs, delaying and destroying dreams of economic success and independence.

"Our judgment enables my office to seek his assets -- wages, real estate, investments -- to repay victims, returning cash he cruelly stole."

Blumenthal is currently running for U.S. Senate.

Phony endorsements from prominent individuals, including Blumenthal, were used by Petriccione to entice consumers into doing business with his companies, Blumenthal said.

Blumenthal sued Petriccione and his two companies, Mediations Inc. and Innovations NE LLC, in April 2008, alleging that he had collected more than $165,000 in deposits and upfront fees, then failed to deliver promised loans or services.

Petriccione claimed, through his companies, to provide investment loans of $100,000-$700 million and "mediation services" as well as to have legal and "placement" skills, Blumenthal said.

Petriccione also represented that he was a Connecticut attorney, though he is not licensed to practice law in the state, Blumenthal said.

Blumenthal's office is empowered by the judgment to seek seizure of property and other assets that Petriccione has or may acquire in the future.

Petriccione is currently in jail and awaiting trial on separate larceny charges stemming from the case.

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