Profile cover photo
Profile photo
Law Offices of Peter C. Rageas P.C.
About
Law Offices of Peter C. Rageas P.C.'s posts

Post has attachment
Investors in United Development Funding and United Mortgage Trust Lose

United Development Funding (UDF) and United Mortgage Trust (UMT) are Real Estate Investment Trusts (REIT) based in Texas. A REIT is a company that owns or finances income-producing real estate. REITs provide investors of all types regular income streams, diversification and long-term capital appreciation. REITs typically pay out all of their taxable income as dividends to shareholders. In turn, shareholders pay the income taxes on those dividends.
 

While most REITs are traded on major stock exchanges, most UDF and UMT are public non-listed private REITS

 
They are considered public because they have the minimum number of shareholders to be considered public. The two main types of REITs are Equity REITs and Mortgage REITs. Equity REITs generate income through the collection of rent on, and from the sales of, the properties they own for the long-term. Mortgage REITs invest in mortgages or mortgage securities tied to commercial and/or residential properties.

In December, 2015, UDF’s stock plummeted after an anonymous short seller published a report on the investing website Harvest Exchange. In the published letter, a long list of suspicious activity led to the conclusion that there are significant questions about the legitimacy of the UDF structure and the financial condition of the companies. The report alleged that UDF and its subsidiary UMT had operated for years like a Ponzi Scheme.

The FBI raided UDF’s office in February of 2016 indicating the company had been under investigation for fraudulent activities. It was reported that the FBI agents were carrying boxes out of the company’s headquarters. The shares of the stock have fallen 54% and was last trading at $3.20 a share.

Kyle Bass, founder and principal of Hayman Capital Management, LP, launched a website also accusing the company of operating a “Ponzi-like real estate scheme.” He pointed out that UDF had raised over $1 billion for different public entities.

It partnered with the brokerage firm RCS Capital (RCAP) to raise money from retail investors (individuals who purchase securities for his or her own personal account rather than for an organization) for UDF IV. RCAP, along with many broker dealers, were paid commission fees for selling the REIT. Bass claims that the funds for UDF IV were used to provide cash for UDF 1 and UDF III. Currently, it’s believed that UDF V funds are being used to fund UDF IV.

Bass believes it’s the ordinary folks seeking a higher yield on their investment than they can get from a bank savings account who were being urged to invest in these non-traded REITS by their financial advisors.

Some of those ordinary investors are clients for whom and on their behalf I have filed a Statement of Claim with the Financial Industry Regulatory Authority against broker IMS Securities, Inc. Customers invested their life savings in these products at the recommendation of their brokers and lost. We are asking for reimbursement of their losses.

If you would like more information about REITs in general, Ponzi Schemes and United Development Funding or United Mortgage Trust, please contact me at: 313-962-7777 for a case evaluation.

The post Investors in United Development Funding and United Mortgage Trust Lose appeared first on Broker Securities Fraud Attorney.

Post has attachment
Securities Fraud Awareness in Michigan

As individuals invest their precious income, they depend on the veracity of the securities and commodities markets. Rest assured, that your government is actively investigating criminal activity in the financial markets, that could potentially harm investors. Although securities fraud encompasses a wide range of criminal / illegal activities – they generally include scams such as the following: Hedge Fund Fraud, Foreign Currency Fraud, Pyramid Schemes, and High Yield Investment Fraud.
 
Some red flags, that all investors should be concerned include; the promise high rates of return with very little or even no risk, investments that involve many forms such as real estate, commodities, securities, and the most obvious… “too good to be true,” investment opportunities. Many investment scams include fee structures that require advanced payments to the deceptive broker or financial representative. Victims of these fee structures are promised large gains with small amounts of monetary payments. Further, victims are required to send funds to cover “processing fees” prior to engaging in the investment opportunity. Unfortunately, the promise of gains never materializes because there is no legitimate underlying investment!
 
Be vigilant and always consider two basic points before investing money; is the broker or financial representative using high pressure sales tactics? Does the offer sound too good to be true? The majority of the time, the answer to these basic questions can help identify a potential red flag!
 
If you feel that you may have been a victim of securities fraud, please contact our Investment Fraud and Securities Fraud Law Offices serving the Greater Detroit Area including; Birmingham MI, Troy MI, Pontiac MI, Warren MI, Livonia MI, and Beyond! We offer FREE consultations and are happy to talk to you about your unique case today.

The post Securities Fraud Awareness in Michigan appeared first on Broker Securities Fraud Attorney.

Post has attachment
How To Avoid Becoming a Victim of Investment Fraud

One of the most important steps to avoid investment fraud, is to always be in charge of your money! Knowledge is king, as you should never trust anybody without properly vetting them. When it comes to investing your money, there is no rush. You most likely have taken several years to accumulate your wealth, don’t be quick to make an investment. Ask for referrals, check to see if they are members of local organizations, and review their licenses. Be cautious of financial professionals who suggest you invest in something you do not understand.
 
Sales and tel-marketers are very good at keeping you on the phone. In-fact they are so good, you may even feel bad trying to get off the phone. Always treat any stranger as exactly that, a stranger, especially if someone is asking for your money. Keep in mind that you have absolutely no obligation to stay on the phone, and do not be afraid to hang up if you are not interested. A clear sign that you may be dealing with a con-artist, is when you feel pressured into making an investment decision.
 

It goes without saying, to never trust anybody who wants you to take a “passive” role in your investments

 
Advisors who lead to you believe that all you need to do is “trust” them, are not for you. An investment professional should make you feel comfortable to ask questions, and they should suggest regular meetings to review your performance. If you need to, take the time to educate yourself regarding investment opportunites and remember that constant vigilance is a necessary part of being an investor.
 

Investors today must be aware of promises for high returns and quick profits. Professional thieves always know what people want to hear, and capitalize on that opportunity. Keep in mind that there is no such thing as an investment without risk.

 
Unfortunately, greed can cloud an individual’s better judgment, and as a result lead you down a road you wish never existed. Only pursue investments that make sense, and are right for your individual circumstance, risk profile, and comfort. Many individuals in their retirement years have limited knowledge about handing their money. Far too many people have been victims of investment fraud because they have not taken the time to properly research their options.
 
Keep these simple tips in mind when investing your money, and you will be on the right path to enjoy your hard-earned savings well into the future. More information regarding securities and investment fraud can be found on the Securities and Exchange Commission website. If you feel that you have been a victim of investment fraud, please do not hesitate to contact our law office located in Detroit, Michigan, we offer free case evaluations.

The post How To Avoid Becoming a Victim of Investment Fraud appeared first on Broker Securities Fraud Attorney.

Post has attachment
Ex Campbell Mayor Pleads Guilty in Securities Fraud Case

Securities fraud, is a deceptive practice in the stock or commodities markets. Typically this practice entices investors to make sale or purchases on the basis of false information. This information frequently results in losses and is in violation of securities laws. Offers of high risk investment opportunities to those who are unable to adequately evaluate risk, is the main problem. We found the following article interesting. Even government officials are no stranger to corruption. Using their power to financially benefit from others is rampant in today’s society.
 

The former mayor of Campbell entered a guilty plea Thursday in Federal Court. George Krinos pleaded guilty to charges of securities fraud and failure to pay and collect taxes.

 Krinos was accused of using his Boardman based investment firm to defraud investors of nearly $1.2 million through stock sales and other investments.
 According to court documents, Krinos raised more than $1 million through the sale of stock and other notes through his Boardman-based investment firm Krinos Holdings, claiming the fundS would help start-up businesses and create as many as 40,000 jobs.
 Instead, investigators said Krinos spent tens of thousands on personal expenses.It was also found that over the course of approximately two years, Krinos improperly withheld and kept approximately $91,495 of his employees’ tax contributions from the IRS. read full article here

 
Our Detroit, Michigan law firm specializes in securities law. If you feel that you have been harmed, please contact us today for a free case evaluation!

The post Ex Campbell Mayor Pleads Guilty in Securities Fraud Case appeared first on Broker Securities Fraud Attorney.

Post has attachment
FINRA Attorney Serving Michigan and Beyond

Financial Industry Regulatory Authority (FINRA) is a niche area of law. This includes, investor arbitration claims, defending brokers against regulatory inquiries, and representing individual brokers. The Financial Industry Regulatory Authority is the largest independent regulator for all securities firms doing business in the United States. FINRA’s mission is to protect investors by making sure the securities industry operates fairly and honestly.
 
When considering FINRA Arbitration, you must keep in mind the unique procedures for both investment disputes and employment disputes. In the vast majority of brokerage firm agreements, investors must agree to arbitrate any disputes in FINRA arbitration. Further, the majority of arbitration claims involving investors are filed with the Financial Industry Regulatory Authority.
 

If you believe you have a right to recover funds, you must act promptly or you may lose your right

 
Generally, investors are allowed six years to file a claim, however, time restrictions, called “statutes of limitations,” may be shorter than six years. To determine whether any statute of limitations may apply to your case, you should always contact an experienced securities attorney.
 
Our law firm based in Detroit, Michigan has been successfully fighting securities cases for over 20 years. We offer free case evaluations and in most circumstances will take on your case on contingency. If you are seeking the advice of a FINRA attorney, contact us today and lets begin the recovery process!

The post FINRA Attorney Serving Michigan and Beyond appeared first on Broker Securities Fraud Attorney.

Post has attachment
Ponzi Scheme Attorney Helping Victims in Michigan and Beyond

Where did the term Ponzi Scheme originate? Charles Ponzi was an Italian con man who in the 1920’s ran an elaborate pyramid investment scheme. As always the case, eventually the scheme collapsed. It was estimated that by the time smoke cleared, he stole approximately $20 million from investors. In today’s dollars that equates to over $200 million. In recent times, and largest Ponzi Scheme, was that of Bernie Madoff, who scammed investors over 30 years out of an estimated $65 billion.
 

As the saying goes, if it is too good to be true, then it probably is!

 
At the core every Ponzi scheme are two components: an investment with an exceptional return, and an incredible story about just why the returns can be so exceptional. When an investment sounds too good to be true, you can almost guarantee you are in trouble.
 
In most Ponzi Scheme cases there is never any actual investing being done. Instead, the “profits” are derived from robbing the older investors to pay the new ones. Then the circle repeats, as the money from new investors goes right back out the door to pay older investors.
 
The take away…always make sure to adequately vet your financial advisor. Ask friends and relatives for recommendations, and more importantly check their credentials with national organizations.
 
If you have been harmed as a result of a Ponzi Scheme, contact our Detroit, Michigan Law Offices today. We have over 20 years’ experience in investment fraud and offer a FREE case evaluation!

The post Ponzi Scheme Attorney Helping Victims in Michigan and Beyond appeared first on Broker Securities Fraud Attorney.

Post has attachment
What is securities fraud in Michigan

Also known as investment fraud or stockbroker fraud, securities fraud is a misleading practice in the investment markets (stock or commodities) that persuades investors to make purchase or sale decisions on the basis of fraudulent information. Inevitably, such decisions lead to losses, and often are in clear violation of securities laws. The major problem with these cases, is the lure of profits based on high risk investment opportunities. Unfortunately, investors who suffer are typically unfamiliar with investing and unable to evaluate risk.
 
The term “securities fraud” encompasses a broad range as there are several forms which include stock manipulation, misrepresentations on financial reports, theft from investors (embezzlement), lying on SEC filings, committing accounting fraud, and insider trading.
 

Obviously, any investor can become a victim of securities fraud

 
Losses are not limited to just investors, often taxing authorities, creditors, and employees are affected. Securities fraud is considered a serious crime and carries both civil and criminal penalties which can result in imprisonment and fines. Allegations of securities fraud are investigated by the Securities and Exchange Commission (SEC) and National Association of Securities Dealers (NASD).
 
If you believe you have been a victim of securities or investment fraud, please contact our Michigan securities law firm today. We have helped countless individuals recover from investment losses. Call today for your free case evaluation.

The post What is securities fraud in Michigan appeared first on Broker Securities Fraud Attorney.

Post has attachment
SEC Charges Paxton With Securities Fraud

Yet another charge brought forth by the SEC, this time charging Ken Paxton for allegedly misleading investors in a technology company. The U.S. Securities and Exchange Commission filed the charges earlier this year. Paxton is faced with three felony counts, and has pleaded not guilty. We found the following article interesting;
 

The U.S. Securities and Exchange Commission filed the charges Monday in a Sherman-based court. They are similar to the allegations Paxton faces in a pending indictment handed up by a Collin County grand jury last year.
 
Paxton is named in the SEC’s complaint along with William Mapp, the founder and former CEO of Servergy Inc. Paxton is accused of raising hundreds of thousands of dollars for Servergy without disclosing he was making a commission. The case stems from when Paxton was a member of the Texas House — before he was elected attorney general in 2014, read full article here

 
Our Securities Law Firm in Michigan, offers over 40 years of experience in litigating securities fraud cases. In addition to broker security fraud, we offer many other services including litigation, broker misconduct, securities litigation, and FINRA assistance. Please contact us today for a FREE consultation 313-334-7767.

The post SEC Charges Paxton With Securities Fraud appeared first on Broker Securities Fraud Attorney.

Post has attachment
Securities and Exchange Commission Cracking Down on KGTA’s Fraudulent Trading Business

The Securities and Exchange Commission in text book fashion filed an emergency civil action in federal court charging principals in KGTA for participating in fraud. The SEC alleged investors were told that KGTA bought and resold refined fuel products, of which did not happen and in-fact operated a Ponzi scheme. The article below sheds light on KGTA’s deception and helps to summarize current events surrounding the case.
 

Feds charge principal of KGTA Petroleum Ltd. with defrauding investors out of $17 million

 
A Copley man who is a principal of KGTA Petroleum Ltd. on Monday, Dec. 8, was charged by federal prosecutors with defrauding about 70 investors out of approximately $17 million.
 
In a news release, Steven Dettelbach, the U.S. Attorney for the Northern District of Ohio, said his office charged Kenneth A. Grant with one count of conspiracy to commit wire fraud and securities fraud and one count of money laundering.
 
The FBI’s Cleveland Office and the criminal investigations unit of the IRS’ Cincinnati Field Office collaborated with the prosecutor’s office on the investigation.
 
“Ken Grant callously preyed on the desires of many to make wise investments for a secure future and duped them out of their life savings,” said Stephen D. Anthony, special agent in charge of the FBI’s Cleveland Office. “Fraudsters such as Mr. Grant remain a top priority of the FBI.” read full article here.

 
Contact the Law Offices of Peter C. Rageas if you have been harmed by a securities violation. We have been defending clients for over 20 years in Michigan and beyond!

The post Securities and Exchange Commission Cracking Down on KGTA’s Fraudulent Trading Business appeared first on Broker Securities Fraud Attorney.

Post has attachment
Investment Fraud Affects Many Americans

Investment fraud also known as securities fraud and stock fraud – is a serious crime as it can victimize individuals who place their trust in their financial advisors to properly manage their investments. These deceptive practices typically occur in the stock or commodities markets which induces investors to make purchase or sale decisions on the basis of false information and are a clear violation of securities laws. Examples of common securities fraud violations include manipulating lying on SEC filings and committing accounting fraud.

Securities Fraud can carry both criminal and civil penalties, resulting in imprisonment and fines

Investigations of securities fraud are carried out by the Securities and Exchange Commission (SEC) and National Association of Securities Dealers (NASD). We found the following article interesting, and highlights the problem that many Americans face today;

Whistleblower report alleges widespread waste, fraud, abuse at Social Security office

A whistleblower’s report to the Office of the Inspector General for the Social Security Administration details a dysfunctional federal office in Madison drowning in waste, fraud and abuse. The report, submitted by whistleblower and Madison Official of Disability Adjudication and Review manager Deborah Holland, alleges widespread corruption and cover-up by top managers at the local office and at the regional Social Security Administration headquarters in Chicago. She also sent the report to the Office of Special Counsel , which is supposed to protect whistleblowers. Read more…

If you believe you have been harmed by investment or securities fraud, give our Michigan Attorneys a call today. We are here to fight for your rights!

The post Investment Fraud Affects Many Americans appeared first on Broker Securities Fraud Attorney.
Wait while more posts are being loaded