Homm of Majorca, Spain, was one of three investors who now say they were duped into pouring more than $10 million into UCAP.
Homm, Joseph McAdams of Hot Springs and Richard Smyth of Amelia Island, Fla.
The defendants used false and misleading financial reports that hid more than $30 million in losses and glorified financial forecasts to induce further investment including investments by Homm and McAdams," according to the lawsuit filed in May by the investors.
In October 2001, Lahaina appointed Homm, an award-winning fund manager, entrepreneur and capital markets expert, to its board of directors.
re-financing boom," Homm said in a 2001 news release.
Investors of Absolute Capital Management, an investment management company at which Homm was chief investment officer, suffered losses in excess of $200m when he conspired with others from at least September 2004 to September 2007, and used the company's funds as vehicles to manipulate stock, the US court order said.
Meisterhans, transferred more than $17m to accounts accessible to Homm and Devine, while Homm was hiding in 2007 and 2008, and "facilitated Devine's money laundering activities by sending Penny Stock Scheme proceeds via complex routes through at least a dozen countries, employing false identities, using offshore companies, and executing transactions in cash, gold and fine art," the order said.