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Construction firm wins $15.2 million from Rindge firm under investigation

CONCORD — Park Construction Corp., of Fitzwilliam, and its principals, all members of the Norby family in Rindge, have won a $15.2 million attachment against Eric Olson and Ted Olson in Merrimack County Superior Court, alleging they benefitted from a Ponzi scheme run by Aaron E. Olson and his defunct KMO Associates business.

Eric Olson is Aaron Olson&#';s uncle, and Ted Olson is Eric&#';s son and Aaron Olson&#';s cousin, according to court papers.

The state Bureau of Securities Regulation confirmed in April it was investigating KMO Associates LLC and its manager Aaron E. Olson of Rindge, but no action has yet been taken by the agency, which administers the state&#';s securities laws and licenses securities brokers.

Judge Richard B. McNamara initially froze assets of Eric Olson&#';s wife, Elaine Olson, on July 2, but modified his order to exclude her after a July 10 hearing on Eric and Elaine Olson&#';s objection.

A hearing on Ted Olson&#';s objection has yet to be held.

The suit was filed by Steven Norby, president of Park Construction, Mark Norby, secretary of Park Construction and David Norby, treasurer of Park, as well as the corporation.

According to a filing for Park and the Norby family by attorney Peter S. Cowan of Sheehan Phinney Bass and Green P.A., in Manchester, KMO ceased operation in February 2012 and also is under investigation by the U.S. Attorney&#';s Office.

After forming KMO in January 2011, &#';At no time was Aaron Olson properly licensed by appropriate state or federal regulatory authorities to engage in the investment business,&#'; Cowan wrote.

Park is in the heavy construction business. After selling equipment in 2011, Park and the Norby brothers invested more than $15 million with KMO through Aaron Olson, according to the filing.

&#';In fact, at the time Park and the Norby brothers provided their money to KMO for investment, Aaron Olson was using KMO as the vehicle to run a Ponzi scheme,&#'; Cowan said in court papers.

&#';In roughly one year, over $15 million dollars provided by Park and the Norby brothers to Aaron Olson and KMO for investment was gone, substantial portions of it having been transferred to Eric Olson and Ted Olson,&#'; the filing said.

Attorneys for Eric Olson noted in an objection that Olson deposited approximately $2 million with KMO Associates LLC between January 2011 and February 2012 and received approximately $9 million from KMO during the same period.

The suit alleges Ted Olson received $1.2 million from KMO.

&#';Petitioners suggest that KMO operated a Ponzi scheme but offer no verified facts to support that allegation other than that they deposited approximately $15 million with KMO between January 2011 and February 2012 and KMO no longer has the money,&#'; attorneys Ralph F. Holmes and Darrell J. Chichester, of the McLane law firm wrote in their July 9 objection.

The Norby&#';s suit seeks return of their lost investment.

The defendants must file their response with the court by Sept. 7. The case is No. 217-2012-CV-00479.

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Denis Paiste may be reached at dpaiste@unionleader.com.

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