An Aurora man accused of defrauding more than 700 businesses in Colorado and other states has been slapped with a $160,000 contempt judgment for continuing to solicit business as a broker.
Colorado Attorney General John Suthers said the man, Tyrone E. Tymkovich, 33, continued to solicit businesses using the alias “Adam Smith” for a New Jersey company, HDI Consultants.
By doing so, Tymkovich violated a Feb. 18 order barring Tymkovich from soliciting businesses as a broker.
In December, the Colorado Attorney General filed a lawsuit against Tymkovich accusing him of defrauding hundreds of businesses between July 2006 and September 2009.
According to the civil lawsuit, Tymkovich and employees at his two Englewood-based companies – Corporate Acquisitions Group and Global Acquisitions Group – would approach small businesses and tell them that either buyers wanted to buy their companies or that their businesses could be sold.
Tymkovich allegedly convinced the business owners to let them conduct an appraisal of their businesses for $5,000. Only about $1,000 of the fee was actually used to complete the appraisals, the lawsuit alleged.
Tymkovich allegedly said in promotional materials that he had taken in $7 million in revenues in 2007 and implied the profits were due to sales commissions.
But in fact, alleged the lawsuit, of the $2.8 million the businesses reported over the past two years, less than $100,000 came from sales commissions. The other $2.7 million came from the appraisal fees they charged.
In the order barring Tymkovich from soliciting businesses as a broker, Tymkovich also had to disclose his “lack of prior success in selling businesses,” that the likelihood of him selling a business is less than one out of a hundred based on past performance, that only three businesses out of the 700 businesses he had contracted to sell were actually sold.
Finally, he had to disclose that although the company had generated more than $2.8 million in revenue from the money collected for the appraisals, it had earned less than $100,000 from the actual sale of businesses. Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com.
