Former Broker Held in Contempt; Judge Rules He Must Pay Victims
(Rochester, N.Y.) – A federal judge has found one of two men who defrauded nearly 200 retirees of more than $11 million in contempt of court.
The Ponzi-like scheme fell apart in 2006, and Edward Tackaberry and Mark Pallazo were ordered to repay the money. Neither of them has paid one cent, according to court papers.
Judge Michael Telesca ruled on Thursday tha tEdward Tackaberry should have been making payments to the victims. The ruling also revealed that Tackaberry is under investigation for a new alleged scheme.
“They're thieves how do they get away with it? I just don't understand it,” said Tom Antinoro of Webster, who invested $90,000 with Tackaberry and Palazzo’s companies, including Pittsford Capital. The loss of the money was devastating. “Both me and my wife are retired. I'm looking to back to work. How do you go back to work at 71 years old?”
In his ruling, Judge Telesca determined that Tackaberry makes $6,000 a month in his new job, earned “substantial consulting fees in 2007,” made “$34,000 from the sale of corporate notes,” deposited money in his wife’s account and transferred his house into his wife’s name.
“It's not fair to the people that he robbed,” said Antinoro.
In court papers, Tackaberry said, “I have not concealed the existence of any assets. Based on my financial situation, I have little or no ability to pay upon the Judgment.”
“He’d been receiving money from various sources,and he simply refused to pay it to the court,” said Securities and Exchange Commission attorney David Stoelting. “That money would have been returned to the victims of the fraud.”
Court papers say Tackaberry works for the following companies on commission: Combtex, LLC, Worldwide Medical Solutions,LLC, and Encompass Enterprises, LLC, all of 17 Schoen Place, Pittsford. He alsoworks for Absentys, LLC in Tennessee.
Court papers indicate the SEC is investigating another alleged scheme. Judge Telesca wrote, “The SEC claims that Tackaberry is involved in a new promissory note scheme...he has been raising money for several start-up companies with no operating history and offering promissory notes with an 8% return.”
In court papers, Stoelting said he has subpoenaed promissory notes issued by Charge on Demand LLC, Innovation Group Enterprises LLC, and Stucco LLC. In court papers, Tackaberry denies soliciting investments on behalf of those entities.
Stoelting would not comment on the investigation into a possible new scheme.
Judge Telesca wrote that if Tackaberry doesn’t start making payments in 30 days, he could go to jail.
Tonight, speaking to 13WHAM-TV, Ted Tackaberry said a settlement in the case has been reached. Tackaberry says, according to the terms, $863 of his monthly wages will be garnished for the rest of his life. Tackaberry also denies he was ever held in contempt of court.