James P. Griffin, Cazenovia businessman and CEO of 54Freedom Companies, was recently indicted on a $1.6 million scheme to defraud investors since 2009.
Griffin was charged with eight counts of wire fraud, five counts of mail fraud and five counts of money laundering by the United States Federal Court.
The indictment was filed on July 22 by U.S. Assistant Attorney Edward Bronton and states since 2009, Griffin has secured donors to purchase “54 Freedom Charitable Gift Annuities” under the false pretenses that the annuities from the investment would provide guaranteed lifetime income for the donor.
The indictment goes on to say Griffin “devised and intended to devise a scheme and artifice to defraud person by soliciting investments under a false pretense and concealing, disguising and failing to disclose material information and obtain money and property by means of material false and fraudulent pretenses.”
Donors of the annuity received intermittent payments until January 2013, said the indictment, but no payments have been issued since. A total of $1.6 million is alleged to have been kept from investors.
Griffin also served as an officer and agent of 5 Ledyard Corporation and Money Ins., which have offices in Cazenovia.
In a March 2013 newsletter of the Greater Cazenovia Area Chamber of Commerce, 54Freedom Inc. was described as, “a New York company that operates on a national level. 54Freedom is the first full financial service firm dedicated to serving charities in the disability community. We own a patent on financial planning process and have a broker dealer, a 501C3 Foundation & sophisticated telemarketing center.”
Inquiries to Griffin for comment were not returned to the Cazenovia Republican as of press time.
Hayleigh Gowans is a reporter for the Cazenovia Republican. She can be reached at [email protected].
