An Orange County man has filed suit against his niece, alleging she engaged in fraud when she convinced him to invest hundreds of thousands of dollars with her, but subsequently failed to make scheduled payments to him.
Michael Morgan claims his niece, Rachel R. Kiamar, convinced him to invest more than $250,000 with her by telling him of her company’s history of averaging a 30 percent return on investments.
“Defendants made these statements in connection with and furtherance of a scheme to misrepresent the nature and success of defendants’ business dealings and investments as well as the defendants’ true intentions with regard to the use of the funds to be invested by Morgan,” the suit filed June 28 in Jefferson County District Court states.
At the time that Morgan made the investments, Kiamar worked for Alexis International and Ren Management and Consulting.
Initially, in April 2011, Morgan agreed to provide $250,000 in capital to Alexis, which it would use for industrial and medical projects, the complaint says. In return, Alexis promised Morgan quarterly reports based on a percentage of the net profits it obtained in utilizing its investments. After a two-year period, Alexis would fully repay Morgan his investment, he says.
Alexis paid the quarterly returns for the first two quarters, then made three additional quarterly payments in smaller amounts, according to the complaint. However, after August 2012, Alexis made no further payments to Morgan, the suit states. The company also failed to return the initial investment at the conclusion of the two-year period, the complaint says.
Morgan alleges fraud and breach of contract against the defendants.
He is seeking damages, plus attorney’s fees, pre- and post-judgment interest, costs, exemplary damages and other relief the court deems just.
Denise J. Gremillion of Gremillion Law Firm in Orange will be representing him.
The case has been assigned to Judge Gary Sanderson, 60th District Court.
Case No. B194-486