Franklin Mint owner: We want our money back
Updated: DECEMBER 29, 2010 — 10:31 AM EST
by Joseph N. DiStefano , Staff Writer @PhillyJoeD | JoeD@phillynews.com
The latest owners of Franklin Mint, the (formerly Wawa-, now Exton-based) “collectibles” company that once employs thousands, are charging fraud against the previous owners who sold them the company for a $16 million investment last year.
JSSI Capital Enterprises LLC, Miami, blames its losses on “false” financial statements in the sellers’ “wholly fabricated” business plan that overstated sales by more than half, “grossly” exaggerated its past advertising and the quality of its computer systems, and also exaggerated Franklin Mint’s relationships with TV shopping channel QVC of West Chester, motorcycle maker Harley-Davidson, Publisher’s Clearing House and other clients, according to a New York State lawsuit. See the complaint here.
JSSI Capital Enterprises LLC bought Franklin Mint and the affiliated Morgan Mint last year. Bloomberg reports JSSI’s suit against sellers Moshe Malamud, Sam Malamud and Steven Sisskind seeks “more than $12.6 million in damages, the rescission of $4 million in promissory notes assumed in the deal and the return of $1.975 million paid to two defendants.” Case is Franklin Mint LLC v. Franklin Mint Inc., New York Supreme Court (NYC) 652386-2010