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Twelve shareholders have filed suit against Empire Capital Corp. and its principal officers, alleging theft, fraud and violations of the Connecticut Unfair Securities Act.
They claim the Stamford corporate finance company, which went public last August, has failed to repay its initial private investors.
The shareholders, many of them local residents, seek $284,000 in allegedly delinquent sums owed in dividend payments and under a subsequent "repurchase agreement" with Empire and its chief executive officer, Alan P. Brooks.
Named with Brooks as defendants are Empire president David V. Winstead and corporate secretary Paul Cohen. Two other parties -- Jeffrey M. Trenk of Arizona and York Capital Corp., a company listed in care of Empire -- also are defendants for signing personal guarantees for a portion of the sums allegedly owed.
The plaintiffs are listed as: Penny J. Putnam of Greenwich; Walter K. Depuy and W.M. Depuy of Stamford; Finby & Co. of Millerton, N.Y.; Casino Partners of New York City; James Depuy of Danbury; Lawrence M. Schweitzer, a Connecticut resident; Patrick Grant of Woburn, Mass.; Barry Shemaria of Marrietta, Ga.; Stephen J. and Daisy M. Rapp of Cos Cob; and John Morrell of Largo, Fla.
Victor Zimmermann, a New Canaan attorney representing the plaintiffs, did not return telephone calls seeking comment.
An Empire executive declined to discuss on allegations. In court documents, the shareholders contend that in June 1994 the defendants made false representations regarding the financial viability of the company in order to convince them to collectively invest neatly $568,000 to help launch Empire. The investment represents 285,000 shares purchased at about $2 a share.
But, the plaintiffs contend, previously agreed upon quarterly dividend payments ceased...