BETHLEHEM, Pa. – Lehigh Valley developer Lou Pektor is paying $800,000 to settle claims of impropriety brought forth by the Pennsylvania Department of Banking and Securities.
According to the settlement, the Department of Banking concluded Pektor violated the Pennsylvania Securities Act when he failed to tell investors about judgments and liens pending against him.
Pektor agreed to the payment without “admitting or denying the allegations,” according to the settlement.
The state agency claims Pektor failed to tell investors about $11.2 million in judgments and liens against him and his companies. It also says the Bethlehem-based developer defaulted on “some or all” of roughly $13 million in loans.
Based on the results of the Commission’s investigation, it was found that at the time when the notes were issued, some of which date back to the early 2000s, Mr. Pektor did not provide the financial information required by statute.
Pektor asserted that no investor requested any financial information and because the entities were newly formed companies no such information existed.
“Over the course of my 40-year career, I have raised more than $600 million from banks, institutions, and partners, resulting in successful real estate projects across the region. While this matter is unfortunate, my results and career speak for themselves,” Pektor said.