The owner of a Hartford loan company will have to pay $230,150 in restitution and penalties for allegedly taking money and failing to provide promised loans and services, Attorney General Richard Blumenthal announced today.
The settlement bans Michael Petriccione from the commercial loan business in Connecticut and obligates him to pay $165,150 in restitution to 13 consumers and $65,000 in penalties to the state.
Petriccione used phony endorsements from prominent individuals – including Blumenthal — to entice consumers into doing business with his companies.
Blumenthal sued Petriccione and his two companies, Mediations, Inc. and Innovations NE, LLC, in April 2008 for allegedly collecting more than $165,000 in deposits and upfront fees, but never delivering promised loans or services.
The judgment empowers Blumenthal’s office to seek seizure of property and other assets that Petriccione has or may acquire in the future.
“This scam badly battered budding entrepreneurs, delaying and destroying dreams of economic success and independence,” Blumenhtal said.
Through his companies, Petriccione claimed to provide investment loans of $100,000 to $700 million and “mediation services.” His companies also claimed to have legal and “placement” skills, and Petriccione represented that he was a Connecticut attorney. But he is not licensed to practice law in Connecticut, Blumenthal said.
