Clarks Summit, PA – Frank L Pavlico III, 42, accused of bilking at least 13 victims out of approximately $2.1 million, has applied to the judge handling his case for more time to find a lawyer. As his assets have been frozen by the court, Pavlico said in his request to District Judge Rosemary M Collyer of the District Court in Washington, that the extension would allow him to get money from friends to pay for a lawyer. Pavlico complained the SEC continues to request information and he had no lawyer to look out for his rights.
The request has been opposed by SEC counsel James A. Kidney, who wrote to the Judge that Pavlico has had sufficient time to arrange the documents, and cannot demand a lawyer in a civil matter. Kidney also pointed out that Pavlico’s other wholly-owned entities, the Julian Estate and the Milan Group Inc., also charged in the case, have already replied, thereby showing he could easily find lawyers for these entities.
Pavlico had previously been arrested in 2005 on charges of money-laundering marijuana deals and was imprisoned for 10 months. He was released from prison for assisting the FBI in bringing to book mobster William D’Elia, currently imprisoned for more than seven years. Post-release Pavlico was under three-year supervision by probation officers which ended last November.
Pavlico commenced his latest fraud in August 2010, well before his supervised release term ended, according to the SEC. His modus operandi was to assume an alias ‘Frank Lorenzo’ and float an investment scheme fronted by his wholly-owned entity the Milan Group. To give the scheme a garb of respectability, he used the services of Brynee K Baylor, a Silver Spring, Md., lawyer and her firm in Washington, Baylor & Jackson, who “cloaked these offers in legitimacy”, as per the SEC. Investors were given no inkling of his past criminal record.
“In at least one instance, Mr. Pavlico offered returns of up to 20 times the original investment within 45 days,” the SEC charged in its November complaint. “Pavlico and Baylor told investors, both orally and in writing that Milan would use investor funds to ‘lease,’ ‘leverage,’ and ‘trade’ foreign bank instruments, including ‘standby letters of credit’ and ‘bank guarantees,'” the SEC complaint states.
The pair would send investors emails that purportedly gave details of the transactions and letters written on the letterhead of the law firm which attested to their authenticity. Questions by investors were brushed off on the grounds of “confidentiality and secrecy requirements”.
They provided victims with “vague” and “complex” contracts, which according to the SEC “were only legal-sounding gibberish dotted with meaningless legal and financial terms that were designed to deceive investors into believing they were participants in a legitimate investment.”
Pavlico and Baylor made no investments out of the monies entrusted to them, and instead used it on luxury cars such as a Range Rover and Jaguar, dining out at costly restaurants, high end shopping, overseas travel to the Bahamas and other personal and business expenses.
The SEC’s charges have been denied by both Pavlico and Baylor.