Court Approves Asset Freeze and Appointment of Receiver
After Attorney General's Bureau of Securities Files Suit Against
Two Bergen County Residents and Their Company For
Allegedly Defrauding Investors of $3.5 Million
NEWARK – State Superior Court Judge Thomas M. Moore, presiding in Newark, yesterday
granted the State's request to freeze the assets of, and appoint a receiver over, defendants
George J. Bussanich, George Bussanich, and Metropolitan Ambulatory Surgical Center, LLC, and
also the nominal defendants named in the State's previously filed lawsuit.
The Division of Law on behalf of the Bureau of Securities last week filed suit against defendants
George J. Bussanich, 55, of Park Ridge and his son, George Bussanich, 34, of Upper Saddle River,
alleging that they defrauded 26 New Jersey investors out of $3.5 million through the sale of
unregistered notes. They allegedly used investor funds for their own personal enrichment.
Various family members who allegedly received funds from George J. Bussanich are named as
nominal defendants.
The misused investor funds were used to purchase three homes and exotic vehicles including
two Maseratis and a Ferrari, among other items and personal expenses.
Investors allegedly were told that the money would be used for Metropolitan Ambulatory
Surgical Center, LLC and George J. Bussanich's other companies.
"We're pleased that Judge Moore granted our motion to immediately take control of the assets
and financial records of the defendants," Acting Attorney General John J. Hoffman said. "Their
misuse of investor funds stops here and now."
The defendants opposed the asset freeze and appointment of the receiver. Judge Moore set a
Feb. 14 court date for further proceedings on the State's filed lawsuit.
Contrary to its name, Metropolitan Ambulatory Surgical Center, LLC, which has a Cliffside Park
business address, is not a surgical center but rather a holding company controlled by George J.
Bussanich. The investors purchased notes which carried a 6% to 8% annual rate of return.
"Securities that claim high rates of yield should always be viewed with caution, and investors
need to perform their due diligence," said Amy G. Kopleton, Acting Chief of the Bureau of
Securities. "We can tell investors when a security has been registered or granted an exemption
before they decide how to invest their hard‐earned dollars."
Rudolph G. Bassman, Chief of Enforcement, and Senior Investigator Peter Cole conducted the
investigation on behalf of the Bureau. Deputy Attorneys General Stacy‐Ann T. Davy , Victoria
Manning and Isabella Stempler of the of the Securities Fraud Prosecution Section in the Division
of Law are representing the Bureau. Mehnaz Rahim, Volunteer Attorney in the Division of Law,
also is assisting with the case.
The Bureau of Securities 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 public is encouraged to visit the Bureau's web site at NJSecurities.gov.
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