Two IBM executives based in Research Triangle Park are among the defendants named in a federal lawsuit brought by a small Philadelphia-area technology company that claims IBM orchestrated a Ponzi scheme that defrauded the company of more than $12 million.

The suit is seeking more than $100 million from IBM (NYSE: IBM).

King of Prussia, Pa.-based Devon IT filed the suit on June 16 in U.S. District Court for the Eastern District of Pennsylvania. The companies had been working in a partnership developing a system that consisted of IBM blade servers and a desktop device and software developed by Devon.

In the complaint, Devon claims IBM took the money Devon invested in the partnership and used it to boost earnings figures for Big Blue’s Systems and Technology Group. The complaint alleges that IBM continued the scheme by bringing in new partners to invest in projects. Thomas Bradicich and James Gargan, two RTP-based IBM vice presidents, are among the four individual IBM defendants named in the suit. IBM has not yet filed an answer to the complaint.

Devon attorneys told the Philadelphia Inquirer that besides the $12 million the company invested in IBM the company spent another $20 million to support the products that IBM abandoned. Devon says it is seeking triple the damages, as is permitted under federal racketeering laws.

Armonk, N.Y.-based IBM employs about 10,000 in RTP.

Reporter e-mail: fvinluan@bizjournals.com

via Lawsuit accuses IBM of Ponzi scheme, seeks more than $100M – Triangle Business Journal.