From Neuman v. Global Security Solutions, Inc., decided today by Judge Denise Cote (S.D.N.Y.):
Phil Neuman has sued defendants Global Security Solutions, Inc. ("GSS") and Werner Hellmann …. Hellman, the owner of GSS, called Colin Connor, a business associate of Neuman's. The call was recorded. Hellman stated that he had been hired to investigate Neuman. Hellman explained that he had found "collected insurance commissions, unlicensed, [and] unregistered companies," and that Neuman had "a lot of history here of fraud."
Hellman then asked Connor a series of questions about his relationship with Neuman, and about companies that Neuman purportedly owned, but which did not appear to be registered. Hellman suggested that his experience investigating organized crime made him suspicious of Neuman's activities. Connor largely declined to answer Hellman's questions. Eventually, Hellman asked Connor "You don't think I know what's going on here? … I know exactly what's going on here." Connor then ended the telephone call.
The defendants contend that the "history of fraud" to which Hellman alluded is confirmed by the allegations of fraud in a series of lawsuits involving Neuman. Several of these lawsuits were brought by former business associates who accused Neuman of deliberately failing to fulfill his financial obligations under agreements with them. Neuman has also been sued by two employees for the termination of their employment under allegedly false pretenses. Some of these cases are ongoing and many have been settled. Only one case has reached a final judgment on the merits: a default judgment in Nevada state court against Neuman for purchasing a car and then keeping it without making any payments….
