Empire Freight co-founder sues former partners for $10M, alleging embezzlement and racketeering


Margo Brodie, Chief Judge with the U.S. District Court for the Eastern District of New York | Administrative Office of the United States Courts | Wikipedia Commons

An entrepreneur has filed a lawsuit against his former business partners, accusing them of orchestrating a complex scheme to defraud him and his company.

A lawsuit filed by plaintiff Kissoon Rampersad accuses Michael N. Tumasar and others of a range of fraudulent activities that have resulted in substantial financial losses to Empire Freight Brokers, Inc., a company co-founded by Rampersad and Tumasar. According to the complaint, Tumasar and his associates engaged in various illegal activities, including embezzlement, identity theft, and racketeering. The plaintiff claims that these actions were part of a coordinated effort to siphon money from Empire Freight Brokers for personal gain.

"Defendants unlawfully exercised complete dominion and control over the nominal defendants to the detriment of plaintiff," states the complaint.

Rampersad alleges that Tumasar began embezzling funds from their business partnership in 2022 without his knowledge or consent. The lawsuit details numerous instances where Tumasar allegedly misappropriated company funds for personal use. For example, he reportedly claimed that bond coverage on a truck cost $31,824 when it was only $1,549, pocketing the difference. Additionally, he is accused of withdrawing large sums from Empire's accounts under false pretenses and redirecting them into personal ventures or unrelated entities.

The complaint implicates other defendants, including Sharada Tumasar, Leona Somar, Franklin Lainez, TD Bank USA National Association, and two limited liability companies associated with real estate transactions. It alleges that these parties conspired with Michael Tumasar to further their fraudulent objectives by laundering money through personal bank accounts and unrelated business entities.

Rampersad seeks actual damages exceeding $10 million to compensate for the alleged fraud's impact on his business interests. He is pursuing claims under federal laws such as the Racketeer Influenced and Corrupt Organizations Act (RICO) as well as state laws addressing enterprise corruption and grand larceny. In addition to monetary compensation for damages incurred due to these illicit activities—including punitive damages—Rampersad requests injunctive relief against further wrongful conduct by defendants along with disgorgement of any property or profits obtained through unlawful means.

Rampersad is represented by attorney Andrew C. Laufer from the Law Office of Andrew C. Laufer PLLC. The case was filed in the Eastern District of New York under case number 1:25-cv-1669.

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Empire Freight co-founder sues former partners for $10M, alleging embezzlement and racketeering

An entrepreneur has filed a lawsuit against his former business partners, accusing them of orchestrating a complex scheme to defraud him and his company.


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