Wednesday, January 27, 2010

Mark Sapperstein, Charles R. Longo - Shippers Choice of Virginia and the Donald Stone Patent Theft

"Gilbert & Mark Sapperstein crime syndicate associate Charles R. Longo was indicted on 45 counts of grand theft in Virginia, considered a flight risk Longo was arrested and held in jail in Maryland for 10 days without bail. Eventually Longo got the charges dropped and had the records expunged.

Gilbert &; Mark's crime syndicate associate, Charles R. Longo, (with the help of Gilbert & Mark) had successfully defrauded the U.S. Dept. of Education out of $8 million in student loans involving 2000 documented victims in Maryland & Virginia in the late 1980's thru 2005.

100 page document (view this PDF file) describing criminal activities of Sapperstein crime syndicate associate Charles R. Longo and Bruff J. Procter filed by MD. AG.
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Federal Bankruptcy Fraud schemes
(4)separate cases 1990/1999 National Training Systems, Charles R. Longo, Shippers Choice Inc., Winmark "

Charles Longo and Donald Stone Industries Inc. -
Published on: 11/2/1999 Last Visited: 5/19/2006

Instead of helping him with his problems with Longo, Stone contends that complaining to the proper authorities just added to his difficulties. ...

Even more surprising to Stone, at the time Longo was investing in DSII, Longo was under investigation by state and federal law enforcement for allegedly defrauding the federal student loan program of millions of dollars. ...

Donald Stone claims that during the business start-up, Longo "befriended" him and then urged him to turn over the corporate documents for DSII to Longo....

The lawsuit claims that while Stone was not present, Charles Longo, armed with the corporate documents, convinced the other DSII board members, Proctor, Warfield and Sapperstein, to fire Stone as President of Donald Stone Industries Inc. ...

To add insult to the injury of having his company pulled out from under his feet, Longo and DSII then took Stone to court to force him to turn over his surfboard ointment patent to DSII. ...Stone says that Longo told the investigators Stone was never more than an inventor hired by the company, and that Stone was just an employee of DSII. ...Bankruptcy Case #161-94-57899 that Stone later obtained, Howard asked Longo, "Did Shipper's Choice ever borrow any money from Stone Industries?" ...

Knowing that Howard was investigating Longo, Stone surmised that Howard would be interested in hearing about the way Longo had fleeced him out of Donald Stone Industries Inc. and was now trying to steal Stone's invention. ...So, Stone had Howard served with a subpoena to testify against Longo in the Worcester County Court lawsuit brought by Longo against Stone....

Stone was hoping that testimony by Howard about Longo's alleged defrauding of the student loan program, would help in his defense against Longo's lawsuit. ...

The report states that Longo was an investor who owned a company called American Credit Company. Charles Longo told the investigators that instead of allowing DSII's funds to sit idle in a Donald Stone Industries Inc. account, he decided to put some of the money in his other business.

While the investigators report talking to Longo, Procter and Mark Sapperstein, the report does not mention Moore, Glick or Warfield who were also investors in DSII, although they lived in Worcester County where the investigation was taking place, while Longo lived in Annapolis and Sapperstein in Baltimore.

While the investigators report talking to Longo, Procter and Mark Sapperstein, the report does not mention Moore, Glick or Warfield who were also investors in DSII, although they lived in Worcester County where the investigation was taking place, while Longo lived in Annapolis and Sapperstein in Baltimore. ...

Stone claims the records show that Longo provided Kinhart with a copy of a promissory note for over $53,000 payable to DSSI from Shipper's Choice Inc. for the alleged investment by Moore, Warfeild and Glick into DSII after they had seized control of the company from Stone....Longo also told Kinhart that Stone would receive his share of any money made from the invention. ...Stone's lawsuit claims that in one of the lines it clearly states, "In one year he (Longo) pulled down more federal aid in Maryland than College Park" (the University of Maryland's campus is known as College Park.)

Key to Stone's lawsuit is that in the typewritten notes from the 1994 meeting - it plainly states "complaints by Donald Stone." ...If Stone's case is true, it poses some disturbing questions, not the least of all is the way the Maryland States Attorney's office seems to be holding a "see no evil, speak no evil" attitude to possible criminal activities of Charles Longo.

I asked Stone why he felt that Howard would not testify in Longo's suit against him.

Stone replied that the 2000 people who were ripped off by Longo in the student loan program would be upset at the news. ...Stone replied, "If any of this gets out," the victims of the loan scheme would be angry that while Stone was complaining about Longo ripping him off, the state did not even bother to mention the fact they suspected Longo of stealing 8 million dollars from the student loan program. ...

But I do know that both the government and the media should be more than willing to investigate Stone's complaints about Longo.

Charles Longo is a person, who seems to have allegedly stolen from thousands of Maryland citizens, but rather than facing some sort of scrutiny by the media and law enforcement, he continues to live comfortably in an expensive house on Harbor Drive in Annapolis, Maryland.

When Longo was asked by the Washington Post about the fact he was driving a $138,000 Lamborghini sports car bought by yet another school, Longo said, "So what?You're under the misconception that we weren't entitled to make a profit ...

I'm happy to be in the United States, which gives me the opportunity to do the things I do." It is troubling to think that in the face of a disinterested press, Longo might be allowed to continue to feel that he can safely go on to set up other business deals like the one with Donald Stone Industries Inc.

http://www.zoominfo.com/people/Longo_Charles_22093132.aspx

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2. Unknown to Plaintiff, DSII's attorney Gregory M. Burgee ("Burgee"), Secretary/Treasurer Bruff J. Procter ("Procter"), and alleged first investor Charles R. Longo ("Longo") were engaged in numerous fraudulent interwoven and overlapping schemes, such as money laundering and conspiracies to commit federal bankruptcy fraud, that were perpetrated by Longo, a white-collar criminal who had 2,000 documented victims in Maryland and Virginia.
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3. In or about January 1991, Burgee, Procter, and Longo induced Plaintiff to believe that Longo was an accredited investor (an individual with an annual income of not less than $200,000.00 and a net worth of not less than $1,000,000.00) who had invested $15,000 into DSII.
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4. Plaintiff as inventor, President, and major shareholder of controlling interest of DSII, having successfully introduced and interested numerous major "Fortune 100" and "Fortune 500" corporations in the emerging technology and inventions was unaware of Longo, Procter, Burgee, and the law firm of Miles & Stockbridge's ongoing criminal activities.
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5. In the Fall of 1993, just as DSII was on the verge of possibly signing two (2) potentially valuable licensing agreements for the technology Plaintiff had invented, Longo and Procter, needing money to support one (1) of their rapidly-collapsing fraudulent securities schemes, conspired with three (3) DSII investors to fraudulently seize control of DSII.
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In the first of numerous extortion attempts, Longo, Procter, and the other DSII investors threatened to have Plaintiff arrested on unspecified criminal charges unless Plaintiff capitulated to their demand to turn over DSII corporate documents in his possession.
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6. After seizing control of DSII, Longo was made President of DSII. At that point, Longo and Procter had exclusive control of DSII's checking account.
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7. In furtherance of their criminal conspiracy, Longo, Procter, Burgee, and Miles & Stockbridge induced three (3) investors to invest additional money in DSII.
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Longo and Procter then embezzled a portion of this money for their personal enrichment and to finance their sale of fraudulent securities.
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8. On or about January 12, 1994, in order to cover up their embezzlement of DSII funds and to support their rapidly-collapsing fraudulent securities scheme, Longo and Procter devised a scheme to extort Plaintiff's patent.
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In this extortion attempt, Longo, Procter, Hal P. Glick ("Glick"), Bruce A. Moore ("Moore"), Mark Sapperstein ("Sapperstein"), and Gilbert Sapperstein ("G. Sapperstein") demanded that Plaintiff assign to DSII his patent and pending patent for the technology upon which DSII was based.
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The investigation would not terminate until four (4) years later and would reveal Longo and his business associates' extensive white-collar criminal activities that included complex numerous interwoven and overlapping fraudulent schemes. The investigation was conducted in Maryland, Virginia, Washington D.C., New Jersey, New York, Texas, Georgia, Florida, Indiana, and Alabama.

2. Longo, through his National Training Systems ("NTS"), which was a professional truck driver training school, had victimized approximately 2,000 (two thousand) students in Maryland and Virginia in a United States Department of Education student loan fraud scheme in the late 1980s.

3. Longo and NTS are alleged by the Maryland Attorney General's office to have defrauded NTS students of approximately $8 million in United States Department of Education student loan money.

4. In or about October 1990, Longo was indicted in Virginia on 46 (forty-six) counts of grand theft, arrested, and jailed for approximately 9 (nine) days in Maryland. Due to a technicality, the charges were dropped and Longo had records expunged.

5. By 1993, NTS in Virginia was closed as a result of numerous complaints.

6. Longo reopened in Virginia in or about 1993 under the name Shippers' Choice of Virginia. The company was registered under the name of other individuals to disguise Longo's ownership. The opening of Shippers' Choice of Virginia was financed with money Longo had obtained from an alleged securities fraud scheme.

7. In or about September 1990, NTS filed bankruptcy in Maryland, with debts of approximately $10,000,000.00 (ten million dollars), to use the protection of the bankruptcy courts against an intensifying investigation by the Maryland Attorney General's office. In connection with this bankruptcy, Longo and his associates made numerous fraudulent pre-petition and post-petition transfers of assets to defraud the NTS creditors. The NTS bankruptcy was dismissedin July 1992.

8. In or about November 1990, Longo and his wife (Linda) would jointly file personal bankruptcy in Maryland to protect themselves from personal liability with NTS and to use the protection of the bankruptcy courts against the intensifying investigation by the Maryland Attorney General's office.
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Longo made numerous fraudulent pre-petition and post-petition transfers of assets to defraud his personal creditors. Longo and his wife would later split their case. Longo's wife's case and plan would be confirmed but Longo's case would still be open in 1997.

9. By conducting fraudulent transfers to conceal cash and material assets to defraud the creditors of both the NTS bankruptcy and his personal bankruptcy, and then diverting these assets into legitimate businesses and real estate, Longo and his associates were able to finance a new corporation as a vehicle for the furtherance of numerous fraudulent schemes.
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12. The money from the student loan offerings was to be used by SCI, a Maryland corporation, but Longo was diverting a portion of the money to finance the start up of Shippers' Choice of Virginia.

13. Additionally, Longo is alleged to have been using money from these schemes for his personal enrichment rather than for corporate purposes.

14. Longo had personally fraudulently represented in writing to investors of these offerings that SCI was not a party to any litigation and that no litigation had been brought against SCI. At the time Longo was making these statements, SCI was operating against two (2) cease-and-desist orders from the Maryland Higher Education Department and was continually involved in litigation with the state of Maryland.

15. In or about March 1993, Michael Dennis Beck ("Beck"), an associate of Longo's involved in the alleged sale of the SCI fraudulent securities offerings, pled guilty to one (1) count of federal felony offense (wire fraud) and was incarcerated for 18 (eighteen) months on a charge unrelated to the alleged SCI securities offerings.
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Namely, all were vehicles through which Longo and his associates engaged in fraudulent activities. With DSII, Longo and his associates would have absolute control of the potentially valuable technology and patent Plaintiff had invented and of DSII, a legitimate corporation Plaintiff had formed.

Hidden behind this legitimate corporation, Longo and his associates would further their fraudulent and federal felony activities and parlay the money and assets from their previous fraudulent schemes into an ever-expanding collection of legitimate businesses, enterprises, and real estate.
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11. On or about January 7, 1992, Longo, Procter, Burgee, and Miles & Stockbridge induced Plaintiff (working in Florida) to believe that Longo was an accredited investor.
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11. On or about January 7, 1992, Longo, Procter, Burgee, and Miles & Stockbridge induced Plaintiff (working in Florida) to believe that Longo was an accredited investor.
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a) Longo, Procter, and Burgee told Plaintiff that Longo had presented check number 272, drawn on Citizens Bank of Maryland in the amount of $15,000.00 (fifteen thousand dollars) as an investment in DSII.
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a) Longo, Procter, and Burgee told Plaintiff that Longo had presented check number 272, drawn on Citizens Bank of Maryland in the amount of $15,000.00 (fifteen thousand dollars) as an investment in DSII.
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b) In or about May 1995, Plaintiff discovered that the $15,000.00 check presented by Longo as an investment into DSII was made payable to Bruff Procter, an individual, not to DSII.
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23. All corporate documents and stock certificates would remain in the exclusive control of Burgee, Procter, and Longo in the offices of Miles & Stockbridge until Spring 1993.
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26. In the fall of 1993, Longo, Procter, John L. Milling ("Milling"), John J. Sellinger ("Sellinger"), James R. Johnson ("J. Johnson"), Carl F. Johnson


Charles R. Longo 624 Harbor Drive Annapolis, MD 21403
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Charles R. Longo, Resident Agent 1623 Forest Dr., Ste. 203 Annapolis, MD 21403-1020 DEFENDANT
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Charles R. Longo, Resident Agent 1623 Forest Dr., Ste. 203 Annapolis, MD 21403-1020 DEFENDANT
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Charles R. Longo, Resident Agent 6200 Jefferson Davis Hwy. DEFENDANT Woodford, VA
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The investigation was initiated because of an extortion attempt on October 15, 1993 by Defendants Robert E. Warfield ("Warfield"), Mark Sapperstein ("M. Sapperstein"), Charles R. Longo ("Longo"), and Bruff J. Procter ("Procter").
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Plaintiff, the inventor of United States patent number 5,314,940, and founder of Donald Stone Industries, Inc., seeks the recovery of damages and his patent(s) and intellectual property caused by a conspiracy and scheme whereby Defendants Warfield, Sr.; Longo; Lauren Longo ("L. Longo"); Mark Sapperstein; Sondra Sapperstein ("S. Sapperstein"); Gilbert Sapperstein ("G. Sapperstein"); Joseph E. Moore ("J. Moore"); Hal P. Glick ("Glick"); Procter; Gregory M. Burgee ("Burgee"); the law firm Miles and Stockbrige; and the law firm Williams, Hammond, Shockley, Moore, and Harrison ("WHSM&H")infiltrated and achieved control over Donald Stone Industries, Inc. and simultaneously began using the assets of Donald Stone Industries, Inc. to further other criminal activities.
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2. Unknown to Plaintiff, DSII's attorney Burgee, Secretary/Treasurer Bruff J. Procter, and alleged first investor Charles R. Longo were engaged in numerous fraudulent interwoven and overlapping schemes, such as money laundering and conspiracies to commit federal bankruptcy fraud, that were perpetrated by Longo, a white-collar criminal who had 2,000 documented victims in Maryland and Virginia.
...
3. In or about January 1991, Burgee, Procter, and Longo induced Plaintiff to believe that Longo was an accredited investor (an individual with an annual income of not less than $200,000.00 and a net worth of not less than $1,000,000.00) who had invested $15,000 into DSII.
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4. Plaintiff as inventor, President, and major shareholder with controlling interest of DSII, having successfully introduced and interested numerous major "Fortune 100" and "Fortune 500" corporations in the emerging technology and inventions was unaware of Longo, Procter, Burgee, and the law firm of Miles & Stockbridge's ongoing criminal activities.
...
5. In the Fall of 1993, just as DSII was on the verge of possibly signing two (2) potentially valuable licensing agreements for the technology Plaintiff had invented, Longo and Procter, needing money to support one (1) of their rapidly-collapsing fraudulent securities schemes, conspired with three (3) DSII investors to fraudulently seize control of DSII.
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In the first of numerous extortion attempts, Longo, Procter, and the other DSII investors threatened to have Plaintiff arrested on unspecified criminal charges unless Plaintiff capitulated to their demand to turn over DSII corporate documents in his possession.
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6. After seizing control of DSII, Longo was made President of DSII. At that point, Longo and Procter had exclusive control of DSII's checking account.
...
7. In furtherance of their criminal conspiracy, Longo, Procter, Burgee, and Miles & Stockbridge induced three (3) investors to invest additional money in DSII.
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Longo and Procter then embezzled a portion of this money for their personal enrichment and to finance their sale of fraudulent securities.
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8. On or about January 12, 1994, in order to cover up their embezzlement of DSII funds and to support their rapidly-collapsing fraudulent securities scheme, Longo and Procter devised a scheme to extort Plaintiff's patent.
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In this extortion attempt, Longo, L. Longo, Procter, Glick, Moore, Sapperstein, G. Sapperstein, and S. Sapperstein demanded that Plaintiff assign to DSII his patent and pending patent for the technology upon which DSII was based.
...
The investigation would not terminate until four (4) years later and would reveal Longo and his business associates' extensive white-collar criminal activities that included complex numerous interwoven and overlapping fraudulent schemes.

The investigation was conducted in Maryland, Virginia, Washington D.C., New Jersey, New York, Texas, Georgia, Florida, Indiana, and Alabama. 2. Longo, through his National Training Systems ("NTS"), which was a professional truck driver training school, had victimized approximately 2,000 (two thousand) students in Maryland and Virginia in a United States Department of Education student loan fraud scheme in the late 1980s.

3. Longo and NTS are alleged by the Maryland Attorney General's office to have defrauded NTS students of approximately $8 million in United States Department of Education student loan money.

4. In or about October 1990, Longo was indicted in Virginia on 46 (forty-six) counts of grand theft, arrested, and jailed for approximately 9 (nine) days in Maryland. Due to a technicality, the charges were dropped and Longo had records expunged.

5. By 1993, NTS in Virginia was closed as a result of numerous complaints.

6. Longo reopened in Virginia in or about 1993 under the name Shippers' Choice of Virginia. The company was registered under the name of other individuals to disguise Longo's ownership. The opening of Shippers' Choice of Virginia was financed with money Longo had obtained from an alleged securities fraud scheme.

7. In or about September 1990, NTS filed bankruptcy in Maryland, with debts of approximately $10,000,000.00 (ten million dollars), to use the protection of the bankruptcy courts against an intensifying investigation by the Maryland Attorney General's office.

In connection with this bankruptcy, Longo and his associates made numerous fraudulent pre-petition and post-petition transfers of assets to defraud the NTS creditors.

The NTS bankruptcy was dismissed in July 1992. 8. In or about November 1990, Longo and his wife (Linda) would jointly file personal bankruptcy in Maryland to protect themselves from personal liability with NTS and to use the protection of the bankruptcy courts against the intensifying investigation by the Maryland Attorney General's office. Longo made numerous fraudulent pre-petition and post-petition transfers of assets to defraud his personal creditors. Longo and his wife would later split their case.

Charles Longo's wife's case and plan would be confirmed but Longo's case would still be open in 1998. 9. By conducting fraudulent transfers to conceal cash and material assets to defraud the creditors of both the NTS bankruptcy and his personal bankruptcy, and then diverting these assets into legitimate businesses and real estate, Longo and his associates were able to finance a new corporation as a vehicle for the furtherance of numerous fraudulent schemes.

10. Longo's new corporation, Shippers' Choice, Inc. ("SCI"), was another alleged "professional truck driving school" which opened in Maryland on or about September 27, 1990.

11. Beginning in or about 1992, Longo/SCI, with the assistance of Washington Investments ("WI"), a corporation engaged in investment banking, would begin selling student loans in bundled offerings of $10,000.00 (ten thousand dollars).

This alleged fraudulent securities scheme would gross Longo/SCI/WI approximately $1,325,000.00 (one million, three hundred twenty-five thousand dollars). This securities fraud scheme would collapse in late 1993/early 1994.

12. The money from the student loan offerings was to be used by SCI, a Maryland corporation, but Longo was diverting a portion of the money to finance the start up of Shippers' Choice of Virginia.

13. Additionally, Longo is alleged to have been using money from these schemes for his personal enrichment rather than for corporate purposes.

14. Longo had personally fraudulently represented in writing to investors of these offerings that SCI was not a party to any litigation and that no litigation had been brought against SCI. At the time Longo was making these statements, SCI was operating against two

(2) cease-and-desist orders from the Maryland Higher Education Department and was continually involved in litigation with the state of Maryland. 15.

In or about March 1993, Michael Dennis Beck ("Beck"), an associate of Longo's involved in the alleged sale of the SCI fraudulent securities offerings, pled guilty to one

(1) count of federal felony offense (wire fraud) and was incarcerated for 18 (eighteen) months on a charge unrelated to the alleged SCI securities offerings.
...
Namely, all were vehicles through which Longo and his associates engaged in fraudulent activities. With DSII, Longo and his associates would have absolute control of the potentially valuable technology and patent Plaintiff had.

Source of This Post
http://www.zoominfo.com/people/Longo_Charles_22093132.aspx
court corruption
Using Bankruptcy Courts to Protect Criminal Activity? Bankruptcy Court Fraud seems to be a Common Factor in these High Dollar Patent Thefts, why the US Government and US Judicial System ALLOWS this to happen seemingly decade after decade is quite SHOCKING.
bankruptcy fraud