Press Release

NEWARK – The New Jersey Bureau of Securities has reached a settlement with Defendants Patrick Gainey, 57, of Belle Mead, and Anthony Uva, 51, of Skillman, who sold unregistered securities issued by Branded Marketing LLC or Branded Marketing, Inc. (collectively, “Branded Marketing”) between 2007 and 2010. The settlements will return $125,000 to the affected investors and bar both individuals from working in the state’s securities industry.

A civil complaint filed by the Bureau of Securities is still pending as to Richard Jackowitz, 61, of Warwick, New York, and the Branded Marketing entities. Jackowitz was the President/CEO of Branded Marketing and also owned and controlled another company that is a defendant in the Bureau’s complaint, IT Connect, Inc.

Gainey was Branded Marketing’s Manager of Investor Relations, and Uva was Branded Marketing’s Chief Marketing Officer. Gainey and Uva were not registered with the Bureau and sold security interests in Branded Marketing that were not registered with the Bureau. Selling securities and/or acting as an agent and effecting or attempting to effect transactions in securities without being registered or exempt from registration violates the state’s Uniform Securities Law.

“Through this litigation, we’re working to get hard-earned money back to investors in Branded Marketing,” said Acting Attorney General John J. Hoffman. “These settlements represent the hard-earned results of those efforts.”

“The Bureau of Securities is working relentlessly to prevent the sale of unregistered securities, like those sold in Branded Marketing, to protect investors and prevent fraud in connection with the sale of securities in New Jersey,” said Division of Consumer Affairs Acting Director Steve Lee.

The Bureau of Securities’ ongoing prosecution of Jackowitz alleges that he told prospective investors that Branded Marketing would launch a pre-paid debit card with international calling features that would be marketed to Hispanic consumers who were unable to procure a traditional credit card. As a result of these alleged misrepresentations, at least $3 million was raised from investors. The Bureau’s complaint further alleges that Jackowitz misused investor funds for personal enrichment, including the purchase of a 28-foot boat as well as improperly diverting Branded Marketing and investor funds to IT Connect, Inc. Jackowitz was recently sentenced to 18 months in federal prison for filing false income tax returns which failed to report income from Branded Marketing.

“It is critical that investors perform due diligence before making investment decisions,” said Laura Posner, Chief of the Bureau of Securities. “Here, neither the defendants nor the Branded Marketing securities were registered with the Bureau, as required, which could have been discovered by speaking to the Bureau of Securities before any investments were made.”

Uva has paid $15,000 in restitution, plus $5,000 in civil penalties. Gainey must pay $110,000 in restitution. A civil penalty of $28,000 is suspended but will become payable if Gainey does not meet the payment plan for paying the restitution or if he violates terms of the Consent Order.

Deputy Attorney General Nicholas Kant of the Division of Law represents the New Jersey Bureau of Securities in the litigation.

Supervising Investigator Michael McElgunn and Investigator Michael LaChapelle of the New Jersey Bureau of Securities investigated this matter.

The Bureau of Securities can assist investors in determining whether those selling securities, as well as securities offered for sale, are registered or are exempt from registration.  The Bureau can be contacted toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378) or from outside New Jersey at 973-504-3600.  The Bureau's website is www.njcsecurities.gov.

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