Ebury Street Capital, LLC, et al. v. McOsker, et al. was filed in the United States District Court for the District of Delaware on February 12, 2021, claiming civil damages for an alleged $3.5 million Ponzi scheme perpetrated by the defendants.
Plaintiffs are entities in the business of buying tax lien certificates, and defendants are individuals and entities who purported to be legitimate brokers and market-makers for the selling and trading of tax lien certificates.
Tax lien certificates are certificates of claims against properties that have liens against them due to unpaid property taxes. These certificates can be obtained from local governments by paying the property’s unpaid taxes, and the buyer can then require that the property owner pay the taxes plus interest to the buyer. Brokers and market-makers are middlemen between the governments and these buyers. This complaint alleges that the defendant brokers and market-makers perpetrated a Ponzi scheme in handling funds held in escrow for the purchase of certificates. Plaintiffs allege that the funds were diverted into the schemers’ pockets and that funds were never repaid nor were valid certificates issued.
Plaintiffs seek damages against the defendants for RICO violations, fraudulent inducement, breach of contract, conversion, civil conspiracy, and unjust enrichment. Plaintiffs ask the court for relief in the form of actual, compensatory, consequential, restitutionary, and punitive damages, and for a constructive trust over the Defendant’s assets.