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Bergen County Man and Associate Accused of Defrauding Investor in Start-Up Scheme
NJ Bureau of Securities files lawsuit over misused funds tied to recruiting software venture
New Jersey Attorney General Matthew J. Platkin announced today a civil enforcement action against Michael Lakshin, of Fair Lawn, New Jersey, and Edward Aizman, of Brooklyn, New York, for allegedly defrauding a New Jersey investor in an $84,681 investment scheme linked to their job recruiting software start-up, Bowmo, Inc.
“The defendants in this case shamelessly bankrolled their lavish lifestyles with someone else’s hard-earned retirement savings,” said Attorney General Platkin. “The lawsuit announced today sends a clear message that this kind of blatant exploitation of investors will not go unpunished in New Jersey.”
According to a civil complaint filed in Bergen County Superior Court, the two men convinced Lakshin’s childhood friend to liquidate her retirement savings to invest in Bowmo, falsely promising significant returns. Instead, the funds were reportedly diverted for personal use, including car payments, luxury shopping, and travel.
The lawsuit seeks to permanently bar Bowmo, Lakshin, and Aizman from selling securities in New Jersey. It also demands restitution for the victim, civil monetary penalties, and the disgorgement of profits obtained through the alleged scheme.
“The defendants callously used a personal connection to lure an unsuspecting victim into a money grab scheme disguised as an investment opportunity,” said Cari Fais, Director of the Division of Consumer Affairs.
Allegations of Fraud
Between April and August 2020, Lakshin and Aizman offered Bowmo securities to the investor, persuading her to withdraw $84,681.19 from her retirement account despite penalties. Lakshin allegedly pressured the investor with assurances of financial guarantees and promises that Bowmo’s success had already made him wealthy.
Court documents reveal the investor was told funds would support software development, marketing, and corporate expenses. Instead, Lakshin and Aizman used the money for personal expenditures such as luxury goods, a Cape Cod getaway, and payments to unrelated accounts, including one owned by Lakshin’s company, Lionscross, LLC, and Aizman’s family member.
Misrepresentation and Deception
The Bureau of Securities alleges the defendants violated the New Jersey Uniform Securities Law by:
- Misrepresenting the intended use of investment funds,
- Failing to disclose their personal use of investor money, and
- Falsely assuring the investor she would face no penalties for withdrawing retirement funds.
Lakshin and Aizman reportedly continued to pressure the investor even as she expressed doubts, with Lakshin emphasizing he would “look really bad” to his partners if she backed out.
The complaint highlights the alleged misuse of funds and the defendants’ efforts to deceive, emphasizing the need for investor protection and accountability.
