CINCINNATI - Clients of Cincinnati money manager Glenn Galemmo have filed a third lawsuit, trying to recover assets allegedly obtained with the proceeds of an alleged elaborate Ponzi scheme.
The Aug. 19 complaint, filed in Hamilton County Common Pleas Court, seeks a court-ordered seizure of two homes, a condo and a motor home that were “directly or indirectly” purchased by Galemmo.
The properties include an Oakhurst Court home in Lebanon where Galemmo’s father and stepmother live. The suit also seeks garnishment of a golf course home in Titusville, Fla., a condo on Marco Island and an eight-year-old motor home titled in the name of Galemmo’s father and stepmother, Joe and Cheryl Galemmo.
Glen Galemmo is not named as a defendant in the new lawsuit, but Joe and Cheryl Galemmo are, along with a family trust and a limited liability company that holds title to the condo.
“Regardless of whether or not the defendants knew of Mr. Galemmo’s crimes, for years they received substantial amounts of property without providing any corresponding benefit to Mr. Galemmo, his affiliates, or his customers,” said the complaint. “Defendants had no good faith reason to believe that they were entitled to the property that was transferred to them.”
In two previous lawsuits, roughly 200 investors allege they lost up to $300 million because of Galemmo's actions. Galemmo notified investors July 17 that his business was shutting down, directing them to contact the IRS for additional information. In a proposed class action lawsuit filed July 26, investors alleged Galemmo engaged in "one of the largest financial frauds in the history of Hamilton County."
The U.S Attorney’s office filed a civil forfeiture action against Galemmo Aug. 1, seeking the seizure of about $1 million in assets, including Galemmo’s East Walnut Hills home and several brokerage accounts.