DENVER — Colorado Attorney General John Suthers announced today that attorneys from his office’s Consumer Protection Section have filed a lawsuit against two Englewood-based businesses and their owners, Tyrone E. Tymkovich (DOB: 12/30/1977) of Aurora and Sam Levine (DOB: 2/1/1967) of Castle Rock, who are suspected of defrauding more than 700 businesses in Colorado and other states between July 2006 and September 2009.
According to the complaint, Tymkovich, Levine or their employees at Englewood-based Corporate Acquisitions Group and Englewood-based Global Acquisitions Group would approach small businesses and inform them that either buyers were interested in acquiring their firms or their businesses could be sold. Tymkovich, Levine and their employees are accused of convincing more than 700 businesses in Colorado and other states to allow them to conduct an appraisal of their business for $5,000. Of the $5,000 Tymkovich and Levine’s businesses collected from their clients, only about $1,000 of the fee was actually devoted to completing the appraisals.
Throughout the process of courting new clients, Tymkovich, Levine and their employees are accused of lying to client businesses about the success of Corporate Acquisitions Group and Global Acquisitions Group. For example, Tymkovich and Levine are alleged to have created promotional materials that said they have taken in $7 million in revenues in 2007 and implied that the profits were due to sale commissions. In fact, of the $2.8 million Tymkovich and Levine’s businesses reported over the past two years, less than $100,000 came from sale commissions. The other $2.7 million came from the appraisal fees they charged.
Tymkovich and Levine also are alleged to given the clients a money-back guarantee in the event of no sale occurring. However, Tymkovich and Levine only followed through when a business complained to either the Better Business Bureau or the authorities, according to the complaint.
The Office of the Attorney General has requested that an Arapahoe County District Court judge order Tymkovich and Levine to stop their fraudulent business operations, bar the duo from committing fraud in the future, and order Tymkovich and Levine to pay restitution.