Blau & Malmfeldt is investigating Detroit Memorial Partners, LLC (“DMP”) and is currently representing DMP investors in litigation. DMP is an investment company that was formed for the purpose of investing in cemeteries in the Midwest. It appears that DMP issued approximately $19M in promissory notes and $4.5M in equity interests.
In June 2013, the Securities and Exchange Commission (“SEC”) brought a lawsuit against DMP and its managing member, Mark Morrow, in federal court in Georgia. According to the SEC’s complaint, DMP and Mr. Morrow made numerous false representations in connection with the sales of these securities. Specifically, the SEC alleges that contrary to the defendants’ representations, DMP did not own real estate directly and the promissory notes were not secured. Rather, it appears that DMP’s primary asset was stock in another entity, Midwest Memorial Group, LLC. In addition, the SEC has alleged that Mr. Morrow converted a substantial portion of the proceeds from the sale of the promissory notes from DMP and used these funds to increase his personal equity interest in DMP.
Mr. Morrow is the defendant in another lawsuit brought by other members of DMP in state court in Delaware. These members claim that Mr. Morrow issued the promissory notes without their knowledge and breached fiduciary duties owed to them when he converted the proceeds from the promissory notes.
The SEC previously brought a lawsuit against Summit Capital, the investment advisory through which the DMP securities were sold, and Angelo Allacea, Summit Capital’s principal, in federal court in Georgia. The SEC has alleged fraud in connection with sale of DMP securities and has also alleged that Summit Capital and Mr. Allacea operated a Ponzi scheme. Summit Capital is presently in receivership.
Blau & Malmfeldt is a law firm that represents investors across the United States in securities, commodity futures, partnership, and shareholder rights disputes. If you would like to discuss your investment in DMP with us, please call us at 312-443-1600 or email Paul Malmfeldt at firstname.lastname@example.org.