Man Accused of Massive Fraud Denies Allegations – Knox County VillageSoup

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ROCKLAND A former Rockport resident accused of defrauding a woman of at least $3 million through a series of limited liability companies he set up denies all allegations.

Mark X. Haley II

Mark X. Haley II’s attorney filed a Dec. 28 response in Knox County Court to a lawsuit filed in October against his client.

The case was sealed after being filed at the request of the lawyer for the woman who said she was defrauded by Haley. The Courier-Gazette had obtained a copy of the lawsuit in October before the sealing order was issued and published an article on October 31, detailing the allegations.

Augusta attorney Walter McKee, who represents Haley, had asked the court on Dec. 2 to unseal the lawsuit, saying it was difficult to defend against the allegations without seeing documentation filed with the court. The lawsuit was served on Haley on December 14 at an address in South Thomaston.

Judge Daniel Billings ruled in his Oct. 28 decision in Knox County Court that the Rockport wife is more likely than not to obtain judgment against Haley and her LLCs. Additionally, Judge Billings approved the seizure without notice to Haley, noting that there was a clear risk that if Haley was given advance notice of the seizure request, he would try to conceal or remove assets.

The seal order was lifted on January 18 after attorney Christopher MacLean, who is representing the woman, said all financial institutions had received the notice of seizure issued by the court.

The lawsuit was filed October 21 on behalf of the Rockport wife against Haley and the LLCs he started (Burntcoat Capital, Boyaca Trading Company, MHRK Investments, Burntcoat Flybridg, Burntcoat-Highbyte, Burntcoat Kinotek, GME Holdco, Bellamy Eagle, Burntcoat Simpletrade, Eastern Investment Advisors, Honduras Imports, J 100 X, One7Seven Productions, Dashii Foods, Xavier Food Groups and Secure Capital Management).

Haley was vice chairman of the Rockport Planning Board but resigned from that position after the complaint was filed. He also resigned from the board of directors of the Maine Ocean School Foundation at Searsport, of which he was chairman. He also served on the board of United Midcoast Charities from December 2021 until late summer 2022, stepping down before the lawsuit was filed.

Messages were left for Haley by The Courier-Gazette in October. He did not respond to requests for comment.

Responses to the allegations were filed in court by his attorney, denying all claims.

His biography when he joined the UMC board in December 2021 stated that Haley was the founder of Burntcoat Capital, a private equity fund focused on socially and environmentally responsible opportunities. His passions are surfing, sailing, fishing and aquaculture. He has family roots in Maine, having spent summers on Swans Island.

His biography on the Maine Ocean School Foundation indicates that he has experience in finance, private equity and real estate investments. He is also an entrepreneur. Mark currently sits on the board of several holding companies and nonprofits, the Foundation’s website says. The Foundation raises funds for Searsport’s non-profit charter school.

The lawsuit alleges Haley and the woman met in Maine in 2019 and formed a romantic relationship. Over the next three years, Haley tricked the woman, through fraudulent misrepresentation, into transferring large sums of money to him totaling $1.1 million by claiming he could get better returns on his investments. , according to the lawsuit. The woman also loaned Haley $500,000 after he promised to repay her in three days with what he said would come from the proceeds of a Small Business Administration loan he was to receive, according to the lawsuit. . The loan was never repaid, according to the lawsuit.

She also bought a $100,000 Land Rover Defender, which he owns and did not return to her, according to the lawsuit.

The two jointly own a home in Rockport. She paid for half the house and he promised to pay the other half but couldn’t get a loan, according to the lawsuit.

The woman learned of the potential fraud in August 2022 when Internal Revenue Service officers came to her home and informed her that Haley was being investigated for Paycheck Protection Program fraud, indicates the trial. Haley had registered the woman and her family members as employees of LLCs in order to obtain the $1.2 million federal aid, according to the lawsuit. The woman and her family were never employees of those LLCs he set up in Delaware, according to the lawsuit.

A review of the federal government’s Paycheck Protection Program website by the newspaper shows that seven of the LLCs listed in the lawsuit received PPP loans. The businesses all have an address of the house he and the wife jointly own on Mill Street.

One of the companies claims to be a soft drink manufacturer with seven employees, another is a fresh fruit and vegetable wholesaler with eight employees and others are investment advisers with seven to nine employees. The loans were received in February and March 2021, according to the federal website.

Haley wrote the woman a letter of apology, according to the lawsuit, and she ended their relationship.

Haley, however, did not pay him back the money he claims he invested, according to the lawsuit. The $3 million figure includes the money he would have invested for her, the $500,000 loan, the vehicle, as well as the loss of investment income she would have received, half of the net worth of property and capital gains taxes incurred. She is also seeking punitive damages against Haley.

The U.S. Attorney’s Office said in October that it was unable to confirm or deny that an investigation existed. This is the standard response from federal prosecutors unless a criminal complaint has been filed or an indictment has been issued.

No criminal charges have been filed.

The response filed in court by McKee on Haley’s behalf indicates that the woman was aware of all of the transactions he was carrying out. The response also argues that the woman was aware of the risks of financial transactions.

The response filed on Haley’s behalf also alleges that the woman “engaged in false and fraudulent actions with respect to statements and promises” regarding her. The Response does not detail these claims.

Haley wants compensation for her share of the house they jointly own.

The damages suffered by the woman were “caused by intervening events and not by the fault of the defendant,” the response states.

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