![]() ![]() The newspaper was unsuccessful in reaching Cabot’s attorney.īoth men are facing charges of conspiracy to commit securities fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering, securities and wire fraud, money laundering and illegal monetary transactions. McCreary also said she did not know about Kroll’s arrest. In an email Tuesday, Plumstead manager Carolyn McCreary said she was unaware of any discussion of the plan since the initial concept was presented last year. The ambitious plan included street-level dining, a downstairs tavern, a walled courtyard with gardens and rooftop dining with views of the Delaware River. The property sold to ACTT River Road LLC in January for $795,000, according to the county Board of Assessment website.ĭuring a presentation to Plumstead supervisors at the time, the new owners said they envisioned a “public house” that would bring “distinct dining experiences” to the historic business. In May 2014, Kroll and a partner had an agreement of sale to buy the approximately 2-acre Apple Jack property. Attorney’s Office.Īdditionally, TIC investors also lost approximately $240 million they invested as principal in the company, according to the U.S. This, officials said, allowed the pair to perpetuate the fraudulent scheme.īesides allegedly buying luxury cars and paying private school tuitions with the money, court records say Kroll and Cabot used $1.1 million to settle a civil settlement to some TIC investors who sued the men, CIP and a CIP subsidiary.īy the end of 2012, when CIP folded, the business and its principals, Kroll and Cabot, owed approximately $17 million to TIC investments, which has not been repaid, according to the U.S. However, according to court records, Cabot and Kroll repeatedly transferred money from TIC investment bank accounts into CIP bank accounts before the money could be used to pay for operating expenses and disbursements to TIC investors.Īuthorities said Kroll and Cabot transferred millions of dollars from CIP accounts to TIC investment accounts that had no available funds to cover their operating expenses and investor distributions. The criminal complaint said from 2008 through 2012 the men engaged in a scheme to defraud TIC investors by misappropriating funds belonging to TIC investments and then providing false and misleading financial reports and other information to TIC investors to conceal their actions.Īccording to TIC investments prospectuses, CIP was only allowed to collect “excess” rental income from TIC investments. A TIC investment is a real estate transaction through which investors collectively own commercial real estate and are entitled to receive a portion of the rental income from the property. He (Kroll) left there a year, maybe two, before starting the Apple Jack project.”įrom 2003 through 2012, CIP sponsored and oversaw approximately 18 so-called tenants-in-common securities offerings to investors all over the country, according to court documents. “These defendants allegedly carried out a scheme to steal from their investors and investor funded properties all to fund a well-heeled lifestyle,” said Bartlett in a statement.Īccording to an email from Carr, Kroll was “unfortunately involved with an unscrupulous business partner prior to 2012 and is confident that justice will be served.”Ĭarr also said the “Cabot business and its investors have nothing to do with Apple Jack. Postal Service and the Internal Revenue Service’s Criminal Investigation Division. Kroll, CIP’s chief operating officer, and Cabot, the chief executive officer, are accused of misappropriating more than $17 million to pay for expensive cars, rental apartments and private schools and of covering it up with manipulated financial statements, according to officials with the U.S. Attorney’s Office for the Southern District of New York.ĭoylestown attorney Mike Carr, who said he represents Kroll only in the Apple Jack matter, stated the real estate developer remains “committed to and excited about” the restaurant project. Cabot, 52, of Stamford, Connecticut, were arrested in June for allegedly participating in a scheme to defraud investors in numerous Cabot Investment Properties LLC-sponsored real estate investments, according to documents from the U.S. Kroll, 44, and his business partner, Carlton P. A Solebury man who had big plans to convert the former Apple Jack, a Point Pleasant bar, into a first-class restaurant faces charges of defrauding investors to fund a “well-heeled lifestyle,” authorities said. ![]()
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