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NJ Securities Bureau Sues Middlesex County Man for Alleged $3 Million Fraud, Misuse of Investor Funds
TRENTON – Attorney General Jennifer Davenport announced today that the New Jersey Bureau of Securities (Bureau) within the Division of Consumer Affairs (Division) filed a civil enforcement action against a Middlesex County, New Jersey, resident and his companies for allegedly defrauding investors out of more than $3.1 million and diverting investor funds for his personal benefit.
According to a Complaint filed in Superior Court in Somerset County, Jesse E. Russell, through his entities, IncCommunications Services, Inc. (ICS) and IncNetworks, Inc. (INI), fraudulently offered and sold unregistered securities to at least 34 investors, including at least 12 New Jersey residents.
“Frauds like these take much-needed money out of hard-working people’s wallets,” said Attorney General Davenport. “Our lawsuit alleges that the defendant lied to his victims to get them to hand over their money, which he then used as his personal slush fund. We will never tolerate that kind of behavior.”
Russell allegedly told investors that he would use their money to finance various technology and infrastructure projects with government entities, or to repatriate over $100 million in funds that he and his companies purportedly held in Ghana. Yet as the Complaint alleges, there were no such projects, and no such money to be repatriated from Ghana. Instead, Russell misused investors’ funds for his own benefit, diverting much of this money to bank accounts in China belonging to unrelated entities.
“As alleged in our complaint, Jesse Russell misled investors with promises of legitimate investment opportunities while instead using their money for personal benefit,” said Christopher Peterson, Acting Director of the Division of Consumer Affairs. “We will continue to pursue those who engage in deceptive practices and work to protect the investing public.”
“Schemes that exploit investor confidence undermine the integrity of our financial markets and violate New Jersey’s securities laws,” said Acting Bureau Chief Keith A. Alt. “With scams like this on the rise, we urge New Jersey investors to check before they invest to avoid falling victim to financial predators.”
The seven-count lawsuit, filed on August 21, 2026, seeks civil monetary penalties, restitution for victims, and disgorgement of all profits and funds obtained by Russell, ICS, INI, and others. The suit also seeks to bar Russell, ICS, INI, and all associated individuals and entities from participating in the securities industry from New Jersey and to permanently enjoin Russell from controlling any “issuer,” as that term is defined in the Uniform Securities Law.
The Bureau is charged with protecting investors from investment fraud and regulating the securities industry in New Jersey.
The Bureau’s investigation was handled by Investigator Raymond Marelic, under the supervision of Supervising Investigator Judy Watkins. Deputy Attorney General Hovhannes Onno Chekemian of the Securities Fraud Prosecution Section in the Division of Law’s Affirmative Civil Enforcement Practice Group is representing the Bureau in this matter, under the supervision of Deputy Attorney General Evan A. Showell, Assistant Section Chief of the Securities Fraud Prosecution Section, and Assistant Attorney General Brian F. McDonough.
It is critical that investors “Check Before You Invest.” Investors can obtain information, including the registration status and disciplinary history, of any financial professional doing business to or from New Jersey, by contacting the Bureau toll-free within New Jersey at 1-866-I-Invest (1-866-446-8378) or from outside New Jersey at (973) 504-3600, or by visiting the Bureau’s website at www.NJSecurities.gov. Investors can also contact the Bureau for assistance, or to raise issues or complaints about New Jersey-based financial professionals or investments.
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