"We charge in our criminal case that Kwasnik exploited an elderly client, misappropriating more than $1 million she intended to give to her children," Dow said at a news conference in Trenton. "Just as we allege in our lawsuit that Kwasnik preyed on elderly investors, we charge in the indictment that he took advantage of the frailty of this client and the trust she placed in him in order to deceive and steal.
"We will aggressively prosecute criminals who prey on this vulnerable segment of our population."
Stephen Taylor, director of the state Division of Criminal Justice, said that the indictment had been handed up Friday and unsealed early Monday. He said Kwasnik still was at large. Authorities said later that they believed he was in Florida and that they were engaged in discussions with his lawyer.
Kwasnik's lawyer, Rocco Cipparone Jr. of Haddon Heights, said that Kwasnik denied that he had broken any laws, and that he believed Kwasnik would soon turn himself in.
"Mr. Kwasnik denies the allegations of the indictment," Cipparone said. "Mr. Kwasnik successfully has been confronting similar allegations brought by the alleged victims in civil litigation against him and will now do so in response to the criminal charges."
The civil lawsuit, reported first in The Inquirer on Saturday, charges that the Kwasniks raised about $8.5 million from investors, many elderly, for investment in their firm, Liberty State Benefits of Pennsylvania, and its parent, Liberty State Financial Holdings Corp., based in Cherry Hill.
The lawsuit charges that instead of being used for investment, about $5.1 million was diverted to Michael Kwasnik, his law firm, and members of his family. The lawsuit demands that the Kwasniks and other defendants return investor funds.
