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SOUTHEAST TEXAS RECORD

Saturday, April 20, 2024

Couple claims they were misled about stock purchase, sues local companies

A local couple has filed suit against two Texas corporations and a Beaumont woman, alleging they were misled into believing false information about a stock in which they invested $10,000.

Malcolm Wells Jr. and Alesha Wells thought they were purchasing The Invisible Armor stock when they invested the $10,000 on June 28, 2007, according to the complaint filed Jan. 20 in Jefferson County District Court.

Instead, their money was used toward Dime on a Dollar stock, the suit states.

They 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, according to the complaint.

"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.

Dime on a Dollar, Powell and The Invisible Armor made false representation to the Wells in order to convince them to buy the stock, the Wells claim.

"Defendant, Tammy Powell, specifically, had actual awareness her representations that they were the last group and no one else would be able to invest, were false and misleading," the suit states.

The Wells are seeking actual and exemplary damages, plus attorney's fees, costs, pre- and post-judgment interest and other relief to which they are entitled.

They are represented by Jessica L. Hallmark of the Law Office of Rocky Lawdermilk in Beaumont.

The case has been assigned to Judge Bob Wortham of the 58th District Court.

Case No. A183-076

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