Investors who placed orders for securities, or purchased real estate, through Alaskan native Gary James Lundgren in Panama, did not know that he had a dark past in the United States, which they would have easily found in any due diligence investigation. Lundgren is engaged in the sale of securities from his offices in Panama, although neither he, nor any of his corporate entities, is licensed by Panama's SMV to engage in securities brokerage, a violation of Panama's securities laws.
The pollution case, which is styled "State of Washington, Department of Ecology vs. Gary Lundgren and Ketron Island Enterprises, Inc*.," involved Lundgren's sole ownership of a corporation (sewage treatment plant) that illegally discharged raw sewage into Puget Sound. The State agency found that his promises to remedy the pollution were not made in good faith, and ordered him to dismantle the facility, which he failed to do.
He appealed an administrative ruling, and a $250,000 fine, to first the Superior Court, which found him personally liable, and finally to the Court of Appeals of Washington, that state's highest court. The Court of Appeals affirmed that Lundgren was personally liable, pursuant to the Responsible Owner Doctrine, which holds that a corporate officer can be held criminally liable, where the officer stands "in responsible relation to a public danger."
Lundgren conveyed the land containing the sewage plant, to a corporation, which agreed to assume liability for the fine, but Washington records, and reliable sources, show that Lundgren owns that entity as well; he was merely seeking to shift financial responsibility to a third party. through a bogus "sale."
Had any of the American and Canadian expats, who have been defrauded by Gary Lundgren in Panama, through his theft of bearer shares representing ownership of Panamanian corporations that owned real estate of the victims, simply conducted a due diligence investigation**, they would have been warned not to do business with this fraudster, whose Panama City lawyer, Alcides Bartolo Peña, has made a career out delaying justice for years, when the victims seek legal redress for their injuries. This demonstrates how critical due diligence is, prior to engaging in any business transaction, whether commercial or personal.
Mr. Lundgren, who is now refusing to come to the front door of his Panama office, and speak with any of his victims, would have been identified to them, as a major problem, early on, if they had done their homework.
* The decision can be accessed here. Readers who are attorneys, and have access to either the official or unofficial decisions of Washington, may find them here: State Department of Ecology v. Lundgren, 94 Wn.App. 236, 971 P.2d 948 .
** Additionally, a due diligence search will also uncover a reported sexual harassment decision that establishes Gary James Lundgren as a sexual predator; we shall cover this topic in a future article, but that information alone makes Lundgren an unacceptable risk for any business transaction. it is publicly available on the Internet.