John Garcia was Served a Third Lawsuit

on Friday, October 30, 2009. The lawsuit was filed in the Orange County Courthouse accusing John Garcia of Breach of Contract, Breach of Fiduciary Duty, and Securities Fraud (fraudulent misrepresentations in connection with the sale of securities).The complaint was filed by an investor in Innovateur.

Garcia claimed that he generated for Angel Strategies investors a 58% internal rate of return each year for ten years from 1998 through 2008. He claimed that Angel Strategies was an early investor in Krispy Kreme. This is fall-out-of-your-chair funny when one learns that Krispy Kreme was founded in 1937. He claimed that Angel Strategies was an early investor in Broadcom. A record search produces no evidence of this. He claimed he was on the Board of Governors at Chapman College, and now it seems that no one at Chapman knows John Garcia.

All of these lies and more are part of the John Garcia sales pitch, and when he was not able to provide paperwork to verify these claims, this particular investor sued. Keep in mind that the former partners in Innovateur removed Garcia from leadership and are now suing him.

John Garcia Has Failed His Bank

John Garcia of Angel Strategies, a man who told many people that he earned millions every year from 1998-2008, has not made a mortgage payment since March 2009.

In October John Garcia and Christina Ohlsson Garcia received "NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST" from NDEX WEST on behalf of Wells Fargo Financial. At the time of the notice the couple was over $30,000 behind in their payments and it seems as if they stopped making payments about the time they put the house on the market to sell.

The Trustee Sale No is: 20090177900797
The Title Order No is: 090689079

This notice was recorded in Official Records, Orange County
Tom Daly, Clerk-Recorder
10/05/09 at 2:05 pm Record No: 2009000526891

To inquire about this in writing, email: rein@NDEXWest.com

John Garcia was in Orange County Court

to deal with two lawsuits on October 20, 2009.

To follow what is happening, go to occourts.org. Choose "online access" then choose "civil cases" then "accept the terms" then you can search by name or by case number. The lawsuit filed by Hattie Bryant and Bruce Camber is case #00122059 and it was filed in 2009. Yesterday Garcia was served another lawsuit with the plaintiff being Innovateur. The case number for that lawsuit is #00312675.

John Garcia of Angel Strategies was a founding partner of Innovateur. Now it appears that the young men who were his partners in that venture perhaps have discovered that John Garcia of Angel Strategies does not keep his promises and he is not who he pretends to be. Here's the actual filing.

Yesterday, Harrison Long, the attorney who was representing Garcia in case #00122059 was in the court and he withdrew from the case.

We were told that John Garcia, who pretended to be a million dollar angel investor, bragged in the past that he had never been sued. Those were the good old days.

John Garcia Keeps Lying

even after the California Department of Corporations told him to stop. In an article posted below and written by a reporter for a Swedish newspaper, John Garcia of Angel Strategies said, "They (referring to Hattie Bryant and Bruce Camber) have put this in the system and sued the former partners around the U.S. for many years. I have been working for 21 years and this is the first time I get sued, "said John Garcia.

We contacted Hattie Bryant and she said, "Bruce and I have been in business for over 30 years and neither one of us has ever sued anyone. We talked with the co-founder of Angel Strategies and we talked with many individuals who invested in John Garcia's scam. These are the people John calls his partners. All of the them have walked away from him either sadden or disgusted by his lies. The only person who harmed us is John Garcia. When he says we have gone around the country for years suing his former partners I cannot imagine what he is thinking. We have only known him for a few months."

This photo of John Garcia was taken by and provided to us by Frank Peters.

John Garcia of Angel Strategies Exposed by

a Swedish newspaper on October 16, 2009.
For your convenience, we provide the article in English with the help of Google Translation.

Angel may be controversial disqualification

The American venture capitalist and business angel John Garcia launched last winter by the publicly funded business developer Teknopol among new firms in Lund and Malmö. Here was a man who could invite entrepreneurs both inspiration and money. Now his halo has gone askew after disqualifications in the United States.

- Thankfully, there was no agreement with any of the companies here, "says Bodil Jönsson Rosvall, CEO of business incubator Minc. John Garcia is subject to disqualification in California, after authorities there found that he lied about what he had to offer.

When Garcia visited Minc in Malmö in December last year he said his company Angel Strategies is, “…probably the largest business angel network in the world.”

In his appearance, which was filmed, he said that his network consists of 226 investors who everyone, including himself, invested one million U.S. dollars each year. But according to the California authorities' investigations, Angel Strategies had only 39 investors, who invested much more modest sums.

John Garcia is accused not only of lying about his skill as an investor and company builder, but also for having deceived the people to invest money in the U.S. A few paid John Garcia to arrange venture capital for their businesses. Some investors, however, never seemed to receive the money. A couple have sued Garcia, who in turn has sued them.

- They have put this in the system and sued the former partners around the U.S. for many years. I have been working for 21 years and this is the first time I get sued, "said John Garcia.

However, there may be more lawsuits. Similar cases are now rolled up with people who have invested money or shares in his company for help by Garcia and his firm Angel Strategies, but received little or no return.

John Garcia's statement that the complaints come up right now is the economic situation, but also that entrepreneurs sometimes think that money will put everything right when it turns out that their business idea does not hold.

It was Teknopol who invited John Garcia to Ideon Innovation in Lund and Minc in Malmo at the end of last year.

Rosvall Bodil Jönsson is CEO of Minc. She is glad that no agreements were reached with contractors there.

- We have learned a lesson. We asked for references, but they never came.

Teknopol requested no references at all.

- Goran Eriksson, whom I have known for many years, introduced him, "said Marianne Larsson, business developers Teknopol.

Goran Eriksson has lived in Southern California in 26 years and worked with venture capital, including a fund, which he formed with John Garcia. The two have gone their separate ways since the allegations against Garcia rolled up.

- Whether there is much, little or nothing behind the allegations against him became so unbearable that he was a member of the fund, which, incidentally, is on hold now because of the economic situation. Goran Eriksson says he does not know much about John Garcia’s activities.

- More than that he has long been a well-known figure in business in California. He has also been to Sweden to find ideas in the past, including at Ideon, but I have not been involved.

Sydsvenskan has repeatedly asked John Garcia for references. But Garcia cannot state the names of individuals or companies to prove that he has been successful in the venture capital industry. Finally he says that he can do it if we sign an agreement to keep the information secret. We think not.