NEWARK, N.J. (Legal Newsline) - A suit filed by New Jersey Attorney General Paula Dow has temporarily closed and frozen the assets of a Livingston, N.J., investment firm alleged to have defrauded investors.
The husband and wife team of Jacob and Blanche Eisenstark is alleged to have used consumers' invested funds for personal expenses, including purchasing residences in Livingston and West Orange, N.J., and Palm Harbor, Fla. The suit alleges that the two defrauded investors out of more than $450,000.
Jacob Eisenstark was a registered investment adviser representative and principal of Eisenstark Advisory, Inc., a registered firm. Blanche Eisenstark was the secretary for J.N.J. Capital Management, Inc., which was a company controlled by her husband.
In its five-count complaint, the state alleges that the Eisenstarks violated the New Jersey Uniform Securities Law and committed securities fraud.
"The victims trusted that their hard-earned investment funds would be applied as promised. Unfortunately, the defendants allegedly violated their trust and, in so doing, the State's Uniform Securities Law," Dow said.
Restitution is sought for defrauded investors by the state, as well as civil penalties against the defendants. The state's request to freeze assets was granted by the court and a court-appointed receiver has been designated to recover assets from the defendants.
Investors were allegedly told by Jacob Eisenstark that they would receive an annual 15 percent return on their investments. No investment contracts were signed, which is a state law requirement, and the funds were not invested as directed by the investors, it is alleged.