JAN LEWAN INDICTED BY DELAWARE GRAND JURY!
Jim Kucharski
Polka king charged with 57 felonies
By PAMELA C. TURFA
pa...@leader.net
Even as companies owned by polka king Jan Lewan were having trouble paying
their bills, Lewan promised investors they would earn 12-20 percent interest
by loaning money to those businesses, according to a Delaware grand jury
indictment.
The Hazleton musician sold unregistered securities totalling at least $2
million to investors in 21 states, the Delaware Attorney General's Office
alleges.
A Delaware Superior Court grand jury has returned an indictment charging
Lewan with 57 felony counts stemming from the alleged sales.
The charges include racketeering, theft, securities fraud, sale of
unregistered securities and sale of securities by an unregistered agent.
Lewan, whose real name is Jan Lewandowski, could face prison time, according
to Delaware securities investigator Stanley Yackoski.
The money provided by investors between 1998 and 2001 was to be used to
develop Lewan's businesses, including JRD Productions; Jan Lewan Orchestra;
Jan Lewan Show Gifts, a Polish gift shop; Baltic Amber Jewelry, a subsidiary
business; The Amber Factory; and group tours of Poland.
Investors were promised that they would receive high interest rates of
return "due to the success and profitability of JRD Productions and Jan
Lewan Show Gifts when, in fact, both companies were having difficulty
meeting their financial obligations," according to the Delaware indictment.
The unregistered securities were promissory notes, meaning the investor was
promised repayment of his or her money over time with interest.
The sales included $236,000 to at least 47 Pennsylvania investors; $650,000
to at least 40 New Jersey investors; and $87,000 to two Delaware investors.
Last April, Lewan filed personal and business bankruptcy petitions with the
U.S. Bankruptcy Court for the Middle District of Pennsylvania and closed the
businesses.
Bankruptcy Court trustee William G. Schwab is overseeing the sale of the
businesses and the contents to repay creditors.
According to bankruptcy court records, 94 claims totaling $12.5 million have
been filed against Lewan.
The list of creditors includes dozens of names of individuals and couples,
some of whom say they are owed more than $200,000.
Many of the claims include the comments "plus interest."
The investors who purchased promissory notes are unsecured creditors,
meaning they would be among the last to be paid from any bankruptcy
proceeds.
"It is pure speculation whether there would be any bankruptcy assets" to pay
unsecured creditors, said Scott Lane, assistant director in the division of
enforcement, litigation and compliance of the Pennsylvania Securities
Commission.
In December 2000, Lewan agreed to a commission order that barred him from
involvement in the offer or sale of securities in Pennsylvania.
Delaware officials allege he sold unregistered securities in Delaware after
the Pennsylvania order was issued.
According to the Attorney General's Office, the Jan Lewan Orchestra had
performed locally in Delaware.
The Pennsylvania Securities Commission alleges Lewan violated the December
2000 order by continuing to sell securities in Pennsylvania.
In April 2001, the commission filed a complaint against Lewan with the
Commonwealth Court, Lane said.
The court has issued a preliminary injunction that, again, bars Lewan from
selling securities. The commission's request for a permanent injunction is
under consideration by the court.
Lane said the state is pursuing additional legal action against Lewan, but
he could not say what is planned.
According to a Web site maintained by Schwab, the trustee is selling the
contents of the Jan Lewan Show Gifts shop through auctions and on eBay, an
Internet site. Three auctions have raised about $66,000 so far.
Jim Kucharski
Lewan Indicted in Delaware on Racketeering and Fraud Charges
By KENT JACKSON
Standard-Speaker
March 12 - Polka band leader Jan Lewan was indicted Tuesday in
Delaware for charges related to the sale of $2 million of securities in
Hazleton businesses that are now bankrupt.
A grand jury indicted Lewan on 57 counts of racketeering, theft,
securities fraud, and sale of unregistered securities, Delaware Attorney
General Jane Brady said in a statement.
Lewan made fraudulent guarantees about the profitability of his two
corporations, Jan Lewan Show Gifts and JRD productions, while saying he
would pay 12 percent or 20 percent on investments, Brady said.
The indictment says Lewan sold at least 300 unregistered securities in
more than 21 states.
In Pennsylvania, Lewan has been barred from selling securities since
2001 and declared bankruptcy after 28 creditors said in July 2002 that he
owes $895,000.
At his two corporations, debts outweighed assets by $2.37 million,
according to bankruptcy filings.
In September 2002, a bankruptcy sale liquidated merchandise at his Jan
Lewan Show Gifts store at 206 W. 21st St.
New Jersey authorities also acted against Lewan. On Jan. 23, the
Chancery Division of the Superior Court of New Jersey assessed a civil
penalty of $950,000 against Lewan.
The order permanently barred Lewan from selling securities in New
Jersey and gives his customers in New Jersey the option of receiving
refunds or
restitution with interest.
New Jersey residents gave Lewan more than $650,000 to invest, a
complaint that the N.J. Attorney General's Office filed against him on
June
25, 2002 says.
In Delaware, two families that invested a total of $87,000 are among
the largest creditors.
Investors who purchased securities from Lewan are asked to telephone
Stanley Yackoski, an investigator for the Delaware Department of Justice,
at
302-577-8935.
Lewan's real last name is Lewandowski. Before facing legal and
financial troubles, he performed under his stage name at Atlantic City
and other venues with his Grammy-nominated orchestra. He also
sold amber jewelry and other products at shows around the country
and organized European vacations for groups of fans and friends.
On Jan. 26, 2001, a van carrying the orchestra to a performance in
Florida crashed, killing two musicians and severely injuring Lewan's
teen-aged son, a trumpet player.