A class action lawsuit has been filed against the companies for alleging scheming Michigan residents out of hundreds of millions of dollars. The lawsuit was filed in United States District Court, Eastern District of Michigan, Southern Division against Frank Bluestein, The Maximum Financial Group, Inc., Questar Capital Corporation, and Gunnallen Financial, Inc. The class action claims the defendants bilked investors out of $350 million in a ponzi scheme involving phony businesses.
The 20-year scam was allegedly perpetrated by attorney Edward May, who erected fake business with no actual operations and nonexistent streams of revenue. Registered stockbroker, Bluestein and The Maximum Financial Group allegedly facilitated the scheme with the help of Questar and GunnAllen. Bluestein allegedly solicited investors from his client base to invest in the fake companies. US residents, primarily from Michigan, invested their personal funds in unregistered securities by purchasing interests in a host of phony limited liability companies that supposedly held contracts to provide telecommunication services to businesses, mainly hotels and casinos. The class action claims the limited liability companies were in fact nonexistent.
If you feel you should be included in this class action case, please contact Andrew Kochanowski of [Sommers Schwartz]
