Peter C. Harvey, Attorney General

Bureau of Securities
Franklin L. Widmann, Chief

For Immediate Release:
April 15, 2004

For Further Information Contact:
Jeff Lamm, Genene Morris
973-504-6327

Bureau of Securities Obtains Restitution Order
For Clients of Hazlet Investment Firm

NEWARK - The State Bureau of Securities has obtained an order against the owner of a Hazlet-based investment firm, who was previously convicted of mail fraud, requiring him and his firm to pay $1 million in restitution to 11 investors, Attorney General Peter C. Harvey and Bureau Chief Franklin L. Widmann announced.

The consent order, issued by Essex County Superior Court Judge Harriet F. Klein, permanently bars Yacub Ayub and his firm, Investment and Management Consultants Inc., of which he was sole employee, from selling securities in New Jersey. A complaint filed by the State in October 2002 alleged that Ayub fraudulently diverted funds from investors for his personal use. Neither Ayub nor the firm were registered with the Bureau of Securities to sell investments to the public. After the State filed its complaint, the U.S. Attorney's Office charged Ayub with committing mail fraud, based on the same activities alleged in the State's complaint. Ayub pled guilty to mail fraud in June 2003 and was sentenced to 33 months in prison. He agreed to pay restitution as part of his federal plea.

"We will not tolerate those who attempt to enrich themselves by ripping off investors," Attorney General Harvey said.

"The fact that Mr. Ayub and his firm were not registered to sell securities was a warning sign,"BOS Chief Widmann noted. "Before investing, consumers can call the Bureau of Securities at 973-504-3600 to learn if investment firms and their representatives are registered or have been the subject of complaints or disciplinary action."

Deputy Attorney General Priya Doraswamy handled this matter for the State.

In an unrelated action, the Bureau of Securities revoked the agent registration of Richard A. Zappala of Northfield, N.J. for dishonest and unethical business practices.

###


Back to Press Releases Page | Consumer Affairs Home Page | NJ Dept. of Law and Public Safety Home Page | State of NJ Home Page | Feedback Survey
If you have any comments or questions, our e-mail address is: askconsumeraffairs@lps.state.nj.us
Posted April 2004