Rick Cover - dba - Appletree Childcare & Learning Center Of Bucks County Investment Fraud, Violations of Child Care Regulations, Violations of State Corporate Regulations Feasterville company Philadelphia individual Pennsylvania
Rick Cover offered stock in a Child Daycare Corporation to investors. He represented that he was investing $150 Thousand Dollars for 500 shares and offered 500 shares in blocks of 100 each for $30 Thousand per block. All shares were sold.
Of the original 500 shares, 250 Shares were held in his name and the other 250 shares were held in his wife's name.
Rick Cover needed additional money and sold 100 shares (50 from him and 50 from his wife) to me and another party for $30 Thousand Dollars.
We were told that there would be a shareholder meeting when the company opened it's door for business. The company opened and has been in business for almost two years. The shareholder have never held a meeting or received any dividens.
Rick Cover refuses to open the corporate books for inspection, has refused to co operate with my lawyer in providing a copy of Corporate by-laws, list of Officers, Financial ledgers or accounting of any kind.
When asked for copies of Corporate tax filings, he admits that he was operating under the table / off the books.
We have since found out, that Rick Cover never paid for the shares (the original 500) that he and his wife hold in their names and that he may not have had legal ownership of the 100 shares that he and his wife sold to me and my friend (for $30 Thousand dollars).
He also failed to register with the PA Dept of State, Securities Commission prior to selling the shares.
He has been operating the Child Daycare Center without a proper license and has been cited for the violation.
Since receiving somewhere in the area of $180 Thousand Dollars from investors, he has purchased a Summer Home at the Jersey Shore, purchase a boat, taken expensive family vactions, however he has fallen behind with his Utilities and building rental to the sum of Thousands of dollars and is on the verge of eviction due to non payment.
He has never supplied his shareholders any income tax forms such as K1 or 1099 etc which has prevented us from filing with the PA State Revenue and the IRS.
His pay checks to his part time / under the table employees have bounced (until recently).
I am concerned as a shareholder, that operating while in violation of Child Welfare Regulations, could void our Liability Insurance (if he has any) and that the children and their families may be at financial risk, should a mishap take place.
I have tried reporting this to the IRS, the PA Dept of Rev, PA Dept of Child Welfare, Local Police and a lawyer. However he is still in operation and his shareholders are being riped off and customers at risk.(while I have spent over a Thousand Dollars in Lawyer fees).
He and his wife owned and operated two other day care centers in the Philadelphia area (by simular name). I know very little regarding the operation of the other two daycare centers. However, it would be a suprise if he operated the other two locations on the up and up while being so deceptive and underhanded in the third location.
He recently sold one of the locations to another individual. He has made settlement on the tranaction and received his money (over $200K). However, being true to form, he failed to notify the State Department of Childwelfare about the sale and is allowing the new owner to operate under his license, which is yet another violation of the state child welfare law.
It is almost unbelievable that so many government and law enforcement organization can be notified about this con-man and no action is taken.
Michael p
Warrington, Pennsylvania
U.S.A.
2 Updates & Rebuttals
Michael p
Warrington,Pennsylvania,
U.S.A.
Rick Cover - Appletree Childcare & Learning Center Of Bucks County , Held over for Criminal Court in Doylestown, Bucks County PA
#3Author of original report
Tue, August 15, 2006
On July 20 2006, a Criminal Complaint Hearing was held at Lower Southampton, Bucks County, Pa District Court.
The Defendant, "Rick Cover" was charged with numerous counts of Theft by Deception, Receiving Stolen Goods, and many Violations of the Pennsylvania State Securities Commission laws.
After testimony by victims, Law Enforcement Officers and State Investigators, The case against Richard D Cover was held over for Prosecution by The Bucks County DA in Doylestown PA.
The Criminal Trial Date is listed for 08-28-06 Case # 20064784 in the Doylestown Courthouse.
Michael p
Warrington,Pennsylvania,
U.S.A.
Authorities believe a Philadelphia man was scamming investors by day and running an illegal casino at night.
#3Author of original report
Thu, March 30, 2006
Article from Courier Times dated 03-24-06
Man charged in stock scam
By MATT COUGHLIN
Bucks County Courier Times
Authorities believe a Philadelphia man was scamming investors by day and running an illegal casino at night.
Lower Southampton police said that over two years 34-year-old Richard Cover of DiMarco Drive illegally sold at least $50,000 worth of stock in his Lower Southampton daycare center. At night he and 10 others, including 45-year-old James R. Coyle III of Durham Place in Bensalem, ran an illegal casino in the Port Richmond section of the city, Philadelphia police said.
Cover and Coyle have been charged with misdemeanors for running a gambling ring and conspiracy in connection with the card games they organized inside a warehouse on Castor Avenue. But Cover also faces 96 felony counts of fraud, theft and related offenses in connection with Appletree Day Care Center in Feasterville.
Police said there is no indication that the two operations were connected. Coyle declined to comment Thursday and a message left at Cover's home was not returned.
Police said Cover's stock scam was up and running by April 2003 when he allegedly convinced a contractor working at the daycare center and the contractor's friend to buy $15,000 worth of stock each in Appletree, according to court records.
After a year the two men hadn't received any return on the investment or any statements about their stocks so they went to Lower Southampton police. Police learned Cover's neighbors in Philadelphia also bought $30,000 worth of stock in Appletree and hadn't received any statements or money either. One woman told police that shortly after she wrote Cover a check for $30,000 he took his family to Disney World and bought a Corvette, according to court records. Police said they believe Cover spent significant amounts of the income on things other than the business.
After investigating Cover for nearly two years, agents from the Pennsylvania Securities Commission and Lower Southampton police obtained a warrant for Cover's arrest earlier this month. Constables took him into custody at the construction site of his new home on Bridgetown Pike in Lower Southampton, police said. He was arraigned and released on his own recognizance. But a few days later he turned himself into police just a few miles away.
The Philadelphia police vice unit had investigated Cover and his partners since October when they received a tip about the illegal casino from city Councilman Frank DiCiccio's office, police said.
Undercover members of the vice unit went into the ?casino? and police conducted surveillance for several months before raiding the facility Feb. 23, according to Sgt. Joseph Lanciano. Lanciano said police found about $5,500 cash and about 25 patrons inside. Officers arrested five people for operating the ring, but Cover and Coyle weren't there. Cover and Coyle both turned themselves in later and were released on their own recognizance.
Cover is scheduled to appear on April 24 in Lower Southampton District Court to face the fraud charges. Cover and Coyle are both scheduled to appear on May 23 in Philadelphia court.
Lower Southampton police said they are still investigating the fraud case and anyone with information should contact Lower Southampton Detective Ted Krimmel or Officer Peter Liese at 215-357-1235.
March 24, 2006 8:33 AM