Judge forces Dime on a Dollar, others to honor settlement agreement
Last January, the Southeast Texas Record reported that Malcolm and Alesha Wells sued two Texas corporations and a Beaumont woman, alleging they were misled into believing false information about a stock in which they invested $10,000.
The parties reached a $10,625 settlement in May, but defendants Dime on a Dollar, The Invisible Armor and Tammy Powell have declined to pay the Wells any of the promised money, court papers say.
On Oct. 12 Judge Bob Wortham, 58th District Court, signed an order granting the plaintiff's motion to enforce the settlement agreement. The defendants did not attend the hearing.
The couple claims they thought they were purchasing The Invisible Armor stock when they invested the $10,000 on June 28, 2007. Instead, their money was used toward Dime on a Dollar stock, the suit states.
According to the suit, the Wells were issued a stock certificate the same day for 25,000 shares of the Dime on a Dollar stock, the Wells claim.
The certificate indicates that Dime on a Dollar was allowed to issue one million shares of common stock at no par value, but in actuality it had the authority to issue five million shares.
"Defendant, Tammy Powell made fraudulent misrepresentations regarding the worth of the stock, how much of the stock was left to be purchased and the indebtedness of the corporation," the suit states.
The Wells filed their motion to enforce Aug. 26, claiming the defendants refused acknowledge e-mails and phone calls about the settlement.
They Wells are represented by Jessica L. Hallmark of the Law Office of Rocky Lawdermilk in Beaumont.
The defendants are represented by the Law Offices of Brian Mazzola.
Case No. A183-076