Developer sued over alleged fraud
Midcoast developer James Tower is facing a lawsuit for allegedly hiding assets to avoid paying more than $150,000 in fines.
Earlier this month, the town of Cushing filed the suit against Tower after he fraudulently transferred money from one of his companies to another to avoid paying fines for land-use violations, according to The Herald Gazette. In April 2009, the town won a judgment of $137,000 plus $19,043 in attorney's fees against Tower's company, Cushing Holdings LLC, for violations related to residential subdivisions he developed. According to the suit, Tower transferred substantial sums of money from Cushing Holdings to another firm, Engineered Dynamics. Cushing Holdings won a judgment of $423,000 against Owls Head-based excavation company D.L. Overlock in May 2011, and Tower assigned interest in the judgment to another entity he owns, a fraudulent move under Maine law, according to the suit.
The town claims Tower "...[used] fraud to perpetuate unlawful and deceptive schemes aimed at defrauding creditors" and is seeking damages, the paper reported.
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