Non-Profit Founder Sues Providence Investment Firm Alleging “Fraud and Conversion”
GoLocalProv News Team
Non-Profit Founder Sues Providence Investment Firm Alleging “Fraud and Conversion”
Muto-Kyle, who serves on the City of Warwick’s retirement board, is the founder of the Joey Andrade Foundation. The Foundation “is dedicated to empowering the lives of people with disabilities and enabling positive change in their communities.” The Foundation is not a party to the lawsuit.
“This action arises from [Dunckley and the companies] breach of fiduciary duty, breach of contract, and instances of negligence and fraud, conversion, and violation of the Securities Exchange Act, which have resulted in significant financial harm to [Muto-Kyle],” states the lawsuit.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTDunckley’s investment firm, Plum Pointe Wealth Management, states in its marketing materials that it was "founded on the belief that we can provide greater value to clients by improving the existing model for financial advising and wealth management. To do that, we start by questioning everything. It’s an instinct that we come by naturally.” Plum Pointe is a reference to the Plum Beach Lighthouse.
The firm adds, "In 1938, Plum Beach Lighthouse survived one of Rhode Island’s most devastating hurricanes. The storm was powerful enough to destroy entire beach communities and wash away nearby lighthouses. Plum Beach Lighthouse withheld, survived and protected those who took shelter inside. This lighthouse is a symbol that when we start with a strong foundation and a well-considered plan, we can weather any storm."
The firm is located at 225 Dyer Street, within the Innovation Center in Providence. The juxtaposition is pronounced - RI's legacy and tradition with innovation.
The firm’s marketing materials state, “Our President and Founder, Brian Dunckley, is a scientist at heart. With a degree in Biology from the University of Michigan, he leveraged his understanding of the scientific method to create a new approach to wealth management.”
“Plaintiff and Brian had a long-standing professional relationship and familial relationship which caused her to trust Brian with her life savings,” states Muto-Kyle’s lawsuit filed in the Federal District Court in Providence.
The lawsuit states, "On or about January 14, 2022, Brian emailed Plaintiff asking if she was interested in private investment deals, and mentioning a private investment he was working on, specifically OES, with the Kraft family (who are famous for their business prowess). Brian provided Plaintiff with the 2022 'Offering Deck' for OES, which advertised the investment as providing 'an unprecedented opportunity for significant growth.' It sought to raise $20 million at a $60 million pre-money valuation. On or about February 24, 2022, Plaintiff authorized the transfer of $75,752.06 for an investment in OES.”
According to the lawsuit, those dollars never made it into the account that was authorized - but went into a separate account controlled by Dunckley.
GoLocal reached out to Dunckley by phone and email, but he did not respond to questions about the allegations.
“Instead of investing directly into OES, Brian invested Plaintiff’s capital in OES Holdings, a Delaware limited liability company (file number REDACTED) that Brian created and was the managing director of, by and through Saunderstown. Plaintiff was not advised that her investment was being directed into OES Holdings rather than OES. Upon information and belief, Brian was a majority shareholder in OES Holdings and stood to personally profit from the investments made by Plaintiff and others into OES Holdings,” states the lawsuit.
“In November of 2024, after several no-show appointments, Brian and Muto-Kyle finally met for about an hour and Brian assured her that all was great and performing ‘above – benchmark.’ During this November 2024 meeting, Brian failed to mention that Krafts sold OES nor that OES had filed for bankruptcy protection. Conversely, Brian advised Muto-Kyle that her investment was ‘doing better than predicted.’ Brian knew, or should have known that OES was essentially out of business when he made these statements,” states the lawsuit.
“On or about August 13, 2024, OES announced that it was in the process of laying off all employees and shutting down operations entirely,” said the suit.
Nephew Dying
The lawsuit alleges that Dunckley pushed an investment but failed to disclose that he was a managing director and made an investment without authorization.
According to the lawsuit, “On or about March 14, 2023, Brian requested that Muto-Kyle invest in a new opportunity held by Defendants. Muto-Kyle’s nephew was on life support during March 2023 and passed on March 15, given her pressing family issues, she did not provide consent or agreement to any investment or financial transaction proposed during that period. On or about June 30, 2023, Defendants withdrew $50,255 from the TD Ameritrade Account for REST without prior notice or authorization.”
Further, “On or about February 24, 2024, Brian emailed Muto-Kyle directly to ask for further investment. She did not respond to this email. On or about February 27, 2024, Brian emailed all 'RestauRent Investors' advising that the company was entering a second round of fundraising and was seeking $2 million. Brian further claimed in this email, referencing the company’s founder, that “Nick expects to be on target for a $30MM valuation into the end of 2025, and sales have grown substantially…”
“On or about March 24, 2024, Plaintiff replied that she was not interested in investing further. On or about March 26, 2024, Brian again sought a further investment from Plaintiff which was declined by email on March 27, 2024,” states the lawsuit.
“Brian never disclosed that Saunderstown was a managing director of REST,” according to the lawsuit.
According to the lawsuit, Muto-Kyle was unaware that another firm — Sanderstown Partners — was owned by her advisor, Dunckley.
“Muto-Kyle had no awareness prior to January 2025 that Sanderstown Partners was owned by Brian. She discovered this fraudulent scheme when she requested a copy of all relevant documents as part of her estate planning. Instead of providing signed documents, Brian provided blank documents with the following instructions.'These are the signature pages I would have sent over to you to sign. Please sign them, and we can date them for the dates of your respective deposits. I will countersign upon receipt, and forward back official copies for your records.’ Muto-Kyle did not recall seeing these documents when she was presented them, and believes that she never signed these documents. She further refused to sign and backdate them as instructed,” claims the suit.
The 14-count lawsuit seeks damages, lawyers' fees, and other financial remunerations from Dunckley and a series of companies tied to him.