Another investor sues Youngstown business accusing it of lying to investors

Another investor has is suing a business that promised to create 30 jobs for the area before unexpectedly leaving less than a year later.

The suit, which was filed in Mahoning County Court Friday, May 9, alleges that Zoetic CEO Avery Hong, as well as Zoetic Executive Chairman Jerome Ringo have engaged in "an ongoing pattern of fraudulent activity."

The suit alleges that the two defendants falsely told investor Scott Gorley, who invested $670,000 into the company, that Zoetic hold patents for certain processes and technologies that would yield high returns to investors.

However, Zoetic did not actually own those patents and never informed investors of that according to the suit.

Furthermore, the suit alleges that Hong did not tell Gorley that he had been the subject of a similar lawsuit in California and that there was an outstanding judgment against him for $3,295,453.94.

The suit further alleges that in addition to the investments made, Gorley was also convinced to loan Zoetic $100,000. The suit also states that the investor was offered and accepted employment at Zoetic soon after that.

According to the suit, Gorley is owed $567,000 in unpaid compensation By Zoetic.

Furthermore, the suit alleges Gorley was asked to cover expenses incurred by Zoetic to lease appropriate space and purchase and assemble equipment to make the plant operational.

Those expenses totaled $356,993 according to the suit.

Gorley is demanding Zoetic repay him the money he had invested, the $100,000 loan, the allegedly unpaid compensation, the $356,993 in expenses he was allegedly asked to cover and $43,629.57 for charges on a credit card he was a guarantor on.

He's also asking for $1 million in punitive damages.

You can read much more about the ongoing legal situation with Zoetic in our related coverage below.

RELATED COVERAGE:

Investor files motion demanding $65,000 from Youngtown refrigerant plant

Over $500k lawsuit filed against Zoetic Global by Youngstown building owner