Stewart Lowinger misrepresented material facts
Stewart Lowinger was introduced to us as a successful financier. He brought us a funding source for our project through Wade Henderson of IMM Financial Corporation, Inc. (Michigan and Canada) (see Wade Henderson report), wherein we were told that Irrevocable Letters of Credit would be issued by an offshore major bank which could be easily monetized in the U.S.
He also told us that although a good faith deposit was being requested for the funding of this investment, "don't worry about that", that he would have another investor post the good faith deposit required by the contract. Upon further questioning, he claimed in writing that "This deal has been vetted by several law firms," and orally told us that he had personally spoken with those lawyers.
After providing detailed information and executing funding documents with the lending source, we requested proof of a relationship between the Funding source and the banks that were going to issue the Irrevocable Letters of Credit, as well as documentation to verify the credentials and financial ability of the funding source to actually fund our project. Not one single verification document was ever produced despite Mr. Lowinger's promises to do so. We were more trusting because the escrow agent was Merrill Lynch, with a New York attorney being the escrow agent. We had a conference call with those people to verify that they were real. Unfortunately, despite our requests, we were never allowed to speak to anyone at the actual funding source.
After our agreements were executed in early November, 2009, and we were still seeking to raise the good faith deposit, we were told that Wade Henderson, Mr. Lowinger's contact with the funding source (who had signed a joint venture agreement and escrow instructions with us) was meeting with this funding source. However, we were unaware that prior to that meeting, which was on November 24, 2009, the COO of the Joint Venture partner (and electronic signatory to our agreements) HAD ALREADY "faxed a Cease and Desist Letter to Mr. Wade Henderson on Nov. 24, 2009" because "On Nov. 22, 2009, one of Mr. Wade Henderson's client contacted the CEO, and showed formal documents signed with my digital signature for the Company. Till that time, I just knew Mr. Wade Henderson sent documents to his clients. Before he sent out those formal documents, he didn't send those documents to me for signing, even he didn't inform me he will send those documents to his clients. When I saw those signed formal documents, I was same surprised because I NEVER GAVE ANY POA TO MR. WADE HENDERSON TO SIGN ANY DOCUMENT WITH MY SIGNATURE AND COMPANY'S NAME." This is a direct quote from the supposed signatory to our funding agreements.
Instead of informing us about the cease and desist request and the sham, fraudulent nature of our transaction, Mr. Lowinger claimed that he was in communication with lawyers who were drafting new paperwork. When we suggested that we could prepare the documentation and speed up the process, he told us that we should not. His promises have materially damaged us because we refrained from seeking other funding sources because we believed we were in privity of contract. We waited over two months, and inquired again as to when the documents would be ready and requested a status update. At that point, Mr. Lowinger announced that he was abandoning our project because we were not being patient enough and our inquiries were having a detrimental effect on his business.
At that point, we contacted the "alleged" funding source, only to find out that they were a FINDER, and had NEVER funded any projects directly, and that the CEO of the company (and only designated signatory) had NOT authorized our deal, and that the CEO had fired the COO of the company, who had told the CEO that he had never authorized the affixation of his signature to any contracts (see above). The CEO told us that she was having 7 escrows cancelled for several million dollars, and apologized for our situation, indicating that she had had no knowledge of it.
When we contacted Mr. Lowinger and told him of our dismay, he claimed he had no knowledge of any fraud, or anything about what had happened, that none of the projects he had referred to Wade Henderson had gone into escrow, which is probably true; however, he refused to answer our question about whether or not he was still doing business with Henderson, which indicated to us that he was still doing business with Henderson despite what we told me about the fact that Henderson had been involved in these fraudulent activities.
Even if Mr. Lowinger did not know the full story, he did evade and put us off, and refused to communicate with us or provide us with essential or even adequate information regarding the people he brought to the deal. He also did not vet Henderson or the transaction adequately. The vetting that he should have done to make certain the deal was real was obviously not done. Whether or not he was involved in the actual fraud committed - we don't know and have no proof of, and it is even likely he did not. But we have lost over 4 months looking for real financing, and may have lost some or all of our projects. And the responsibility for that stands in his court. In our opinion, he was incompetent, and it should be noted that when confronted, he shut down and refused to speak with us or deal with the problem until we provided him with a draft of this report.
Our advice (to be kind) is to be very cautious before you conduct business with Mr. Stewart Lowinger