A Florida man and former arms dealer who was previously sentenced for defrauding the federal government is now using litigation threats to extort businesses into unwanted deals, looking to tap into their directors and officers insurance policies and collect settlements, according to a lawsuit from two companies.
Efraim Diveroli buys small stakes in companies, then threatens baseless derivative lawsuits unless executives agree to transactions that benefit him financially, Maddox Defense Inc. and Envirotech Vehicles Inc. said in a lawsuit Wednesday in the US District Court for the Southern District of California.
The companies seek unspecified compensatory damages, treble damages under ...
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