Business digest

State probes use of investments

The Capital Online
July 11, 2004

The state Securities Commission is investigating the business practices of a Severna Park man who allegedly borrowed and failed to repay $2.5 million to investors, court papers show.

Edwin C. Hirsch of 704 Severnside Ave., may have violated registration requirements and antifraud laws of the Maryland Securities Act, according to documents filed in Circuit Court by the Attorney General's Office's Securities Division on July 1.

The division's complaint alleges Mr. Hirsch accepted money from 50 investors from 1996 to 1998 to start a company called Amerilease Funding. Investors were given promissory notes whose terms are now past due, the complaint alleges.

Documents turned over by the company's co-owner, Robert Brown, show investor funds were used to buy office equipment that was later sold to avoid foreclosure for another company the two men owned.

Their lawyer, George Doumar denied the allegations.

"Mr. Hirsch and Mr. Brown did not steal any money or run off with any money," he said.

Mr. Hirsch was subpoenaed to testify before investigators but failed to appear on June 14.

The state Attorney General's Office has gone to court to get a judge to order Mr. Hirsch to comply with their subpoena. Mr. Doumar said the filing was uneccessary, as Mr. Hirsch is scheduled to testify July 22.