History of Investor Disputes
Nearly a year ago, a Florida judge dismissed a similar suit brought by investor Allan Teh against the same parties, claiming he was tricked into investing $4 million in Justice Partners. Teh said his money was used to fund Lake’s ventures in mass tort cases that failed to yield results.
Lake’s new complaint accuses Melchionni, Benito, and Solit — none licensed to practice law in New York — of posing as legitimate attorneys tied to Washington, D.C. firms that actually violated ethical rules. He cites an arbitration finding that one of their firms, KS Law Group, was not a valid law practice under D.C. professional conduct standards.
“It can be reasoned that the twelve law firms mentioned by the arbitrator that were similarly formed by Melchionni are equally improper,” Lake wrote.
Coercion, Duress, and a Power Grab
Lake alleges that the defendants used deceit and coercion to infiltrate his firm, seize payroll control, and take over client communications. “Defendants made repeated threats regarding payroll and employment,” his complaint states, “coercing staff and subjecting them to duress.”
He claims that around March of last year, the group sabotaged his $18 million financing deal, using the resulting crisis to strong-arm control of the firm.
“Defendants bragged about their unfair bargaining position to third parties, claiming, ‘We own Ed Lake,’” he alleges.
Lake says he was forced to sign a predatory agreement stripping him of ownership under duress, as defendants demanded $39 million without legal basis, further deepening the alleged extortion scheme.
