Trenton, NJ – New Jersey Attorney General Matthew J. Platkin announced that the New Jersey Bureau of Securities has filed a civil enforcement action against two men accused of defrauding at least one New Jersey investor in a fraudulent investment scheme tied to a job recruiting software company. The lawsuit, filed in Bergen County Superior Court, targets Michael Lakshin of Fair Lawn, New Jersey, and Edward Aizman of Brooklyn, New York, as well as their company Bowmo, Inc.
The complaint alleges that Lakshin, Aizman, and Bowmo deceived a New Jersey woman into liquidating her retirement savings to invest in the company, which they falsely claimed was a successful business poised for significant growth. Instead of using the funds to expand Bowmo, the defendants diverted most of the investment for personal use, including lavish purchases and travel expenses.
“Lakshin and Aizman preyed on their personal connection with the victim to swindle her out of her hard-earned retirement savings,” said Attorney General Platkin. “We will hold them accountable for exploiting an individual’s trust and using fraudulent means to line their own pockets. This kind of behavior will not be tolerated in New Jersey.”
Fraudulent Investment Scheme
According to the civil complaint, Lakshin and Aizman convinced the investor to liquidate her retirement account in 2020 in order to purchase a convertible note—referred to as the “Bowmo Note”—offered by Bowmo. The defendants falsely represented that the investment would provide a higher return than her existing retirement savings, and assured her that Bowmo was a successful, growing company with a proven track record in job recruitment.
Using their personal connection, Lakshin convinced the investor to withdraw $90,189.21 from her retirement account, falsely assuring her that there would be no tax penalties associated with the liquidation. He further claimed that Bowmo would reimburse her if any taxes or penalties arose. Despite these assurances, the investor was hit with charges including a “surrender fee” and a “mortality and expense risk charge” for liquidating her retirement account, and was also exposed to tax liabilities for the withdrawal.
In June 2020, the investor met with Lakshin and Aizman at a restaurant, where they presented her with a subscription agreement for Bowmo, which she signed. She then wired $84,681.19 to a Bowmo bank account controlled by the defendants.
Through a series of text messages and meetings, the defendants assured the investor that her funds would generate much higher returns than her retirement account, which they claimed was underperforming. They also falsely told the investor that she would not incur tax penalties by withdrawing the funds from her retirement account, promising to reimburse her for any fees or taxes she incurred.
Despite these assurances, the investor did incur tax penalties and fees when she withdrew the funds, including a surrender charge of $5,366.26 and an additional mortality risk charge. These financial burdens were compounded by the fact that the defendants never used the investment money for the business as promised.
Misuse of Investor Funds
Instead of using the investment funds for business purposes, as they had promised, Lakshin and Aizman diverted the money for personal expenses. The lawsuit alleges that the funds were spent on luxury items, including a stay at a Cape Cod bed and breakfast, purchases at a Jaguar Land Rover dealership, and shopping at a high-end designer store in New York City. The funds were also transferred to accounts held by a separate entity, Lionscross, LLC, owned solely by Lakshin, as well as to family members.
“The defendants intentionally misled the investor about how her money would be used, and instead used it to fund their personal lifestyles,” said Cari Fais, Director of the Division of Consumer Affairs. “Our lawsuit aims to hold them accountable, recover the victim’s money, and ensure they cannot defraud anyone else.”
Legal Action and Seeking Restitution
The lawsuit seeks to permanently enjoin Bowmo, Lakshin, and Aizman from issuing or selling securities in New Jersey, as well as civil penalties, restitution for the victim, and disgorgement of any ill-gotten gains. The Bureau is also pursuing action against Lionscross, LLC, and Aleksandra Aizman, for their involvement in the misuse of funds.
“This is a clear case of betrayal and exploitation,” said Cari Fais, Director of the Division of Consumer Affairs. “We’re committed to holding the defendants accountable for their actions, recovering the victim’s funds, and ensuring they cannot continue to harm others.”
In addition to the personal financial harm caused to the victim, the lawsuit highlights the broader public interest in holding individuals and companies accountable for fraudulent investment schemes that exploit unsuspecting investors.
“This case underscores the importance of thoroughly researching investment opportunities, even when they are presented by people you trust,” said Elizabeth M. Harris, Bureau Chief of the New Jersey Bureau of Securities. “If something doesn’t feel right, it’s critical to question it and seek guidance before proceeding.”
Investors Urged to “Check Before You Invest”
The New Jersey Bureau of Securities reminds investors to always “Check Before You Invest.” Residents can verify the registration status and disciplinary history of financial professionals doing business in New Jersey by contacting the Bureau at 1-866-I-Invest (1-866-446-8378), or by visiting the Bureau’s website at www.NJSecurities.gov.
Elizabeth M. Harris, Chief of the Bureau of Securities, warned that this case is a stark reminder of the importance of thoroughly investigating investment opportunities, even when offered by trusted individuals. “Fraudulent schemes often come with pressure to act quickly or promises of high returns. If something seems too good to be true, it usually is,” Harris said.
The Bureau’s investigation into the scheme was led by Deputy Bureau Chief Amy Kopleton and Supervising Investigator Myles Orosco, with legal representation by Deputy Attorneys General Michael Eleneski and Mikhaeil Awad. The Bureau is tasked with protecting investors from fraud and regulating the securities industry in New Jersey.
