Watch out world, Fred Steinberg is at it again...
Steinberg formerly ran several companies in Florida and was a defendant in a number of investor lawsuits. His company is now bankrupt and investors claim they were defrauded and vendors have been stiffed.
His criminal record includes three arrests for grand theft and one in which he was charged with a scheme to defraud. In 2004 he was charged with racketeering.
His short-lived GovCom group was just another incarnation of the Dynetech B2G Institute and now he's left those clients high and dry.
So here he goes again with GovSmart Acquisitions. We're not sure what the business model is yet but with Steinberg attached you can bet it's going to be a smart move to stay as far away as possible.
Here's a few links about Fred you might find interesting...
http://www.whnt.com/news/takingaction/whnt-b2g-hidden-camera-investigation,0,6269014.story
http://www.sandiego6.com/mostpopular/story/B2G-Get-Rich-Scheme-Targets-San-Diego-Business/naLrwamJG0yVGJpNkBaAfg.cspx
http://www.ripoffreport.com/Bait-and-Switch/B2G/b2g-lead-us-on-we-are-disable-5ef4a.htm
http://cases.justia.com/us-court-of-appeals/F2/551/510/43536/
See B2G Institute, Dynetech, Telligenix, GovCom Group, American Cash Flow seminars, mymediaworks.com, Creative Capital
something else I found online about Fred Steinberg. Hold onto your
wallets!
Cape Coral: Businessman back in bankruptcy court -
Published on: 6/29/2003
Last Visited: 6/29/2003
Fred Steinberg now teaches about money
...
Fred Steinberg made a lot of headlines in 1996 when his Cape Coral
construction company went bankrupt and dozens of angry customers wanted
him jailed.
He's now going through the same thing again with a second business he
started in the Cape.
But neither the bankruptcies nor the outrage are stopping Steinberg, 53,
from traveling the country as a self-styled financial whiz who teaches
others how to improve their cash flow.
"I have to work," Steinberg said.
...
"That sounds like good old Fred to me," Robinson says.
...
Not long before that, Steinberg had started Express Business Funding
Inc., a "factoring" business designed to make money by buying unpaid
receivables from other companies at a discount.
The people who invested about $5 million in Express Business Funding
- and made an 18 percent return on their money until things went sour -
now wonder how much they'll get back through the Chapter 11 bankruptcy
in Miami.
Local investors contacted by The News-Press didn't want to discuss the
situation on the record.
Some
are embarrassed by their losses, which total as much as $1.2 million
for one man and $400,000 for another.Others say they don't want to
condemn Steinberg publicly, because they fear it may hurt their chances
of getting what little of their money they can recover.
Court
records show, however, that the Express Business Funding bankruptcy
case is full of investors accusing Steinberg of concealment and fraud.
According to court records and correspondence related to the dispute,
some investors believe Steinberg concealed his losses - claiming
business was phenomenal - until his debt grew so bad that a bank
demanded changes in the company's financial structure and Express' true
financial status came to light.
Records and correspondence show some investors also claim Steinberg
is guilty of theft and fraud for allegedly spending Express Business
Funding money on fancy sports cars for himself, airline fares for trips
that had nothing to do with company business, attorneys' fees and a
Miami Beach condominium they say he claimed was an office.
"Those are all allegations," Steinberg said."I believe they have been
investigated and there have been no charges."
Steinberg
was charged with fraud when Maxson went under, but the charges were
dismissed by a judge, who said the accusations belonged in civil court,
not criminal court.
Investors in Express Business Funding have taken their accusations to
the FBI, federal prosecutors, the state Department of Financial
Regulation and the state attorney's office.
Records show the Department of Financial Regulation was investigating
Steinberg as recently as April.But so far, no charges have been filed.
...
When Maxson folded, Steinberg said it was because he lost focus on his
business after the death of his son.
He says Express
landed in Chapter 11 largely because of the economic shock that came
after the Sept. 11, 2001, terrorist attacks on the United States.
"There was never any evidence of wrongdoing," Steinberg says.
...
Fred Steinberg gave a videotaped deposition on Sept. 12, 2001, in one of
several lawsuits filed against him.
When he was asked whether he told investors years ago that things were
fine - when Express had already lost $500,000 - he took the Fifth
Amendment on the advice of his attorneys and didn't answer.
Steinberg repeatedly took the Fifth Amendment after that and answered
many other questions with, "I don't recall."
When Express folded, Steinberg closed its doors, sold his home and moved
to Florida's east coast, where he now lives in Boca Raton
and one more tidbit on Mr. Steinberg.The News-Press: Local & State - Ex-Cape resident hit... -
Published on: 8/7/2004
Last Visited: 8/8/2004
Fred Steinberg,
the flashy former Cape Coral businessman who teaches others how to get
rich despite twice going bankrupt himself, has been charged with
racketeering.
Steinberg, 54, of Boca Raton, who was president of Maxson Construction
Co. and Express Business Funding Inc. in the Cape, was arrested
Wednesday in Palm Beach County.
He was released on $10,000 bail Thursday and must face the racketeering
charge in Lee Circuit Court.
The charge revolves around Express Business Funding, whose investors say
they lost about $5 million when it went bankrupt in January 2003.
Information filed in the case says Steinberg sold unregistered
securities and never told investors he'd been investigated by the state
and signed a consent agreement in which he agreed to stop the illegal
activity.
Prosecutors say if Steinberg's investors had known the true status of
his business, they would have quit investing or withdrawn their
investments before losing hundreds of thousands of dollars.