Josef Kofman, a 71-year-old California resident, filed a civil lawsuit against Alexy Pitt and Lucrazon Global, alleging elder financial abuse. Kofman claims he lost over $1.3 million across three years in Lucrazon Global and other ventures run by Pitt. The suit, filed in California, details how Kofman, now facing homelessness and substantial IRS debt, was systematically drained of his savings.

Lucrazon Global, launched in late 2013, functioned as a Ponzi scheme. It began collapsing by late 2014, leaving most investors with significant losses. Kofman, a retired individual, was among those who lost everything. He now owes over $100,000 on credit cards and continues working in his 70s to manage his debts.

California law defines elders as persons aged 65 and older. Elder financial abuse occurs when an individual or entity wrongfully takes, obtains, or retains an elder's property, or assists in such actions, often through fraud or undue influence. Kofman's complaint describes his losses as "one of the most egregious examples of financial elder abuse imaginable."

Pitt's corporate ventures, which changed names over time, were based on an endless chain scheme under California law. They involved selling "accounts" in a multi-level marketing format, complex transfers between investors, and demands for investors to recruit more participants. Kofman's lawsuit claims Pitt has operated such schemes for fifteen years, causing "destruction on employees and investors alike."

Kofman was introduced to Pitt in mid-2012 through a connection in the Russian American community, although they first spoke by phone in 2001. After their first in-person meeting in June 2012, Kofman alleges he was "systematically drained of every penny of savings, retirement funds, home equity and credit." Pitt even convinced Kofman to borrow money from family. He created a constant sense of urgency, implying that previous investments would be lost if Kofman did not provide additional funds.

Pitt maintained the illusion of success by repeatedly telling investors his companies were "always on the verge of success ... and were always on the verge of being able to repay" them. Kofman's attorney asserts that his client's lack of business acumen and advanced age made him a vulnerable target for Pitt's manipulation and continuous demands for money.

As part of his deception, Pitt once presented Kofman with a business card listing him as "Vice President." Kofman was never an employee or actual Vice President of Lucrazon or any of Pitt's companies. This gesture aimed to create a false sense of personal stake in Lucrazon's success.

Kofman often requested written agreements for his investments. Pitt complied only once, signing an agreement for a small portion of the total amount Kofman invested. Pitt frequently offered excuses, claiming he was too busy or it was too late to prepare documentation.

Deception was central to Pitt's dealings with Kofman. One tactic involved providing Kofman with stacks of pre-signed checks. Pitt instructed Kofman not to deposit these checks until he gave approval. Later, Pitt informed Kofman that the account for one stack of checks had been closed, rendering them worthless. Kofman still possesses these checks.

During their initial meeting in 2012, Pitt showed Kofman around his offices, claiming to employ over 60 software engineers. Pitt stated his company facilitated easy online merchant account setup and that, despite current tightness, it was on the brink of significant success. He falsely claimed to have invested $22 million of his own money and explicitly denied his business was multi-level marketing.

Kofman, persuaded by Pitt's claims, transferred $115,000 to Pitt's Wells Fargo account in June and July 2012. By the end of 2012, Kofman had transferred $625,000 to Pitt and his various companies. Once identified as a "malleable mark," Kofman received daily calls, sometimes multiple times a day, from Pitt or his associate "Gena" Friedman.

In 2013, Kofman transferred another $478,351 to Pitt. During this period, Pitt began targeting Kofman's retirement accounts. Kofman expressed concern about incurring penalties for early withdrawals, but Pitt assured him the money was only needed for a couple of weeks and would be repaid quickly. The money was not repaid, leading Kofman to incur penalties and current IRS debt he cannot cover.

In 2014, Alex Pitt intensified efforts to create an illusion of Lucrazon Global's success. In April 2014, Lucrazon hosted a large conference at the Los Angeles Convention Center, featuring speakers like Mitt Romney and Hector V. Barreto, former administrator of the U.S. Small Business Administration. Barreto was appointed President of Lucrazon Global later that month.

Pitt also repaid Kofman $95,000. He used this partial repayment to convince Kofman that the business was thriving and to solicit more funds. Pitt heavily emphasized the involvement of Romney and Barreto. This tactic worked. Kofman resumed transfers in June 2014, sending another $187,000 to Pitt that year.

Three checks, totaling $47,000, funded by Kofman's brother Greg, were particularly distressing. Dated June 16, June 25, and August 14, 2014, Pitt promised these funds would be repaid by the end of August. Pitt failed to keep this promise.

In October 2014, Pitt continued the pretense of Lucrazon Global's success. He told Kofman the company was doing well and he was actively negotiating a sale for a large profit, claiming the sale would close that month. The sale never happened, and Pitt continued to pressure Kofman for money.

Despite nearing financial ruin, Kofman transferred an additional $33,860 to Pitt in 2015. On or about June 24, 2015, Kofman spoke with Pitt by telephone, stating he was suffering from severe depression due to his unrepaid losses and dire financial situation. Pitt's response was to suggest Kofman obtain prescriptions for "Diazepam (valum) 10mg" and/or "Escitalopram 10 mg" (Lexapro), texting Kofman the medication names.

By this point, Lucrazon Global had fully collapsed. Pitt had moved on, launching a new scheme called NetVence. He informed Kofman he was restructuring the business to capitalize on bitcoin and avoid high processing fees.