SEC Adds Defendant In NJ Affordable Case

Law360, New York (May 16, 2007, 12:00 AM EDT) -- The $40 million Ponzi scheme scandal that felled NJ Affordable Homes Corp. widened on Monday, with the U.S. Securities and Exchange Commission adding a defendant to its fraud case against the bankrupt real estate company.

The amended complaint, filed May 10 in the U.S. District Court for the District of New Jersey and publicly announced by the SEC on Tuesday, added Kenneth Lagonia as a defendant in the case, originally filed in September 2005.

Lagonia, who acted as a consultant to NJ Affordable and was president...
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