ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Parlor Games Owner, Oppenheimer Advisor Sued Over Alleged $1 Million Fraud; All You Need To Know

Makowenskyj allegedly worked with Oppenheimer representative and misled investors into putting in over $1 million in an alleged ponzi scheme.
PUBLISHED JAN 4, 2024
Cover image source: Pexels | Photo by Sora Shimazaki
Cover image source: Pexels | Photo by Sora Shimazaki

A complaint has been filed against a former Suffolk County police officer and Michael Makowenskyj, the owner of Parlor Games, for defrauding investors. Makowenskyj, whose company claims boxer Floyd Mayweather and ex-baseball player Johnny Damon as its “special advisors”, has been accused of working with an Oppenheimer & Co. financial advisor to inflate valuations to mislead investors, per a Bloomberg Law report.

Image source: Pexels | Photo by Tara Winstead
Image source: Pexels | Photo by Tara Winstead

Makowenskyj, along with three other business ventures, allegedly worked with Oppenheimer representative Christopher Lazos and misled investors into putting in over $1 million in an alleged ponzi scheme since 2017. In the complaint filed by New York resident Dimitry Polishchuk, Oppenheimer & Co. has also been named as a defendant for allegedly failing to supervise Lazos, who served as the CFO for Parlor Games and a registered representative of the company.

Polishchuk stated that he was introduced to Makowenskyj by his wife’s friend in 2021, who received a commission from his investment in the alleged ponzi scheme. According to Polishchuk, Parlor Games purported to be a start-up mobile gaming app at the time, which Makowenskyj claimed to have founded in January 2021. He further claimed that the company had a valuation of over $10 million and it sought a $1.5 million capital raise from investors.

Image source: Pexels | Photo by Tara Winstead
Image source: Pexels | Photo by Tara Winstead

Makowenskyj apparently weaved a false story that Lazos and Kevin Harrington of television’s entrepreneurial competition series "Shark Tank" provided the $10 million valuation of the company and mentioned that Floyd Mayweather was a backer. Makowenskyj further boasted social media posts featuring photos of celebrities including Mayweather to bolster his claims of their involvement in the venture.

As per the Bloomberg report, Lazos’s Finra profile says his involvement in Parlor Games is unrelated to his employment with Oppenheimer & Co. However, Makowenskyj used the investment bank’s name and logo in the investment materials which he used to mislead investors into believing the company was involved in the valuation, per the complaint.

However, Oppenheimer has clarified that it has found no evidence to support the allegations of the company being involved in its initial review. “Oppenheimer had no involvement with the company at issue and it was an approved outside investment by the named employee,” the investment firm told Bloomberg Law.

As per the complaint, Polishchuk invested $50,000 in September 2021, and the purchase agreement said he could sell by March 2022. In the first six months after the investment, Makowenskyj failed to communicate with Polishchuk. However, when Polischuk attempted to exercise his option to sell, Makowenskyj allegedly evaded questions for nearly two years while soliciting an additional $50,000 investment from him.

Image Source: Pexels | Photo by John Guccione
Image Source: Pexels | Photo by John Guccione

In April 2023, Makowenskyj wired just $5,000 to Polishchuk after allegedly receiving a bridge loan which Polishchuk believes comprised of other investors’ funds. Since then, Polishchuk has not received any information about Parlor Games’ company financials or the balance of his investment to date, as per the report.

Polishchuk alleged that Makownskyj, his companies, and Lazos failed to disclose potential risk factors associated with the investment. He further claimed that they intentionally misled him about the $10 million valuation to make him invest in the company. Polishchuk seeks to recover damages for the alleged violations of the Securities Exchange Act, plus interest and legal fees.

MORE ON MARKET REALIST
Ozark Trail 64 oz Water Bottles were recalled after the lids of faulty bottles forcefully ejected.
3 hours ago
The player laughed and giggled her way through the puzzles to win prizes worth over $57,000.
4 hours ago
Scott Riccardi placed an unbelievable wager during Final Jeopardy! to win a massive amount in a day!
6 hours ago
The guest got a 200% return on investment on her sculpture that she bought from Macy's.
7 hours ago
Jennings had a record-setting winning streak as a contestant before he became the host.
1 day ago
The player, Ron Wheeler, tragically got no clues after his letter picks for the final puzzle.
1 day ago
The former kids champion, Skyler Hornback knew what was coming.
1 day ago
The fans took issue with the clue being too tough and unnecessary for the contestants.
2 days ago
Cuban wanted to strike a deal with the founder of Coconut Girl and gave her an ultimatum.
2 days ago
Although the word did make a lot of difference, some fans felt that the decision was ridiculous.
2 days ago
The guest, who found the item online, didn't think it was the real deal until he heard its value.
3 days ago
The player Samantha secured the first big win of Ryan Seacrest's run on the show.
3 days ago
The sisters wanted to keep their father's legacy alive, but also had their careers to focus on.
3 days ago
The shopper noticed that the watermelon which she bought three days ago was deflated.
3 days ago
The guest couldn't believe that her collection was worth so much money.
4 days ago
While all the Sharks were out, Mark Cuban saw the potential in "Garage Celebrations."
5 days ago
The loss was ironic as the retired teacher coulnd't get a phrase commonly used in classrooms.
5 days ago
The recalls were issued for a range of products including tires, air conditioners and power banks.
5 days ago
The guest who got the item as a gift from a neighbor had little to no idea about its significance.
5 days ago
Harrison got a good deal for the fossil although it wasn't what he had thought.
6 days ago