Profile cover photo
Profile photo
Law Offices of Peter C. Rageas P.C.
About
Posts

Post has attachment
Two Florida Merchant Cash Advance Companies with Nationwide Investors File for Bankruptcy — Now Under SEC Investigation https://brokersecuritiesfraud.com/two-florida-merchant-cash-advance-companies-with-nationwide-investors-file-for-bankruptcy-now-under-sec-investigation/

In July, two Hallandale Beach, Florida, companies, 1 Global Capital, LLC*, and its sister company, 1 West Capital, filed for Chapter 11 bankruptcy protection. The two companies, which had the same owner, Carl Ruderman, provided short-term cash advances called Merchant Cash Advances or MCAs to small businesses.

The bankruptcy not only affected the 100 employees of the company, but over 3,400 people nationwide who had invested more than $287 million in the companies since 2014.

These investors, many of whom used their retirement savings to invest, are at risk of losing significant funds.1 In August, the U.S. Securities and Exchange Commission (SEC) filed a complaint against the companies alleging that they perpetrated a four year long unregistered securities offering fraud.

The SEC complaint alleges that 1 Global Capital used a network of barred brokers, registered and unregistered investment advisers, and other sales agents to offer and sell unregistered securities to investors in more than 25 states. 1 Global paid sales agents nearly $9 million in commissions for getting investors to put money into 1 Global.2 Investors were promised a high-return, low-risk investment whereby 1 Global Capital would use investor funds to make short-term Merchant Cash Advances to businesses that could not obtain more traditional financing, such as bank loans. According to one investor, the terms of the loans averaged just nine months and they had a yield of 10 percent.3

Some of the investor’s money did fund MCAs. Through April 2018, 1 Global and 1 West made about $348 million in Merchant Cash Advances involving approximately 4,000 MCAs. However, the SEC complaint alleges that substantial investor funds were used to pay operating expenses and to purchase already-distressed, long term credit card debt which was not an allowed use of investor funds. Further, the complaint alleges that 1 Global Capital, and its owner, Carl Ruderman, misappropriated at least $35 million of investor money, at least $28 million of which was paid to other entities Ruderman owned or controlled; to companies operated by Ruderman’s relatives and acquaintances that had nothing to do with 1 Global’s cash advance business; and to fund Ruderman’s lavish expenses such as a luxury vacation to Greece and loan payments on his Mercedes Benz and personal credit cards.4

Investors were told that the average loan amount was $68,000, but 1 Global often made loans of hundreds of thousands, even providing a $40 million loan to a California auto dealership. Investors were also not told that 18 percent of the MCAs that the company funded were the subject of collection lawsuits in 2016.

On monthly account statements to investors, starting in October 2017, 1 Global also misrepresented the amount of investor cash it had on hand and the rates of return investors were earning. These statements also falsely claimed that the audit firm of Daszkal Bolton LLP had audited 1 Global’s financial statements.

As of April 2018, 1 Global owed investors at least $272 million but only had $27.5 million in its bank accounts. 5 Carl Ruderman’s assets have been temporarily frozen along with those of six other companies which he owned.6 These companies were named in the SEC filing as Bright Smile Financing, BRR Block, Digi South, Ganador Enterprises, Media Pay, Pay Now Direct and the Ruderman Family Trust.

*The 1 Global Capital loan business is a separate, unrelated company from 1st Global Capital Corp, an independent broker-dealer based in Dallas, Texas, according to Bruce Kelly with InvestmentNews.com.7

If you have questions about investment fraud, financial schemes, broker misconduct, or about your broker’s management of your account, please contact our Investment and Securities Fraud Law Firm at: 313-334-7767 for a Free case evaluation. We have been helping investors recover losses from fraudulent financial advisors for over 20 years!
__________________________

1,2, 4,5 U.S. Securities and Exchange Commission v. 1 Global Capital and Carl Ruderman, 8/23/2018
Link: https://www.sec.gov/litigation/complaints/2018/comp-pr2018-171.pdf

3,7 Unregistered Advisers Linked to Latest Alleged South Florida Lending Fraud, Bruce Kelly, InvestmentNews.com, 8/7/2018
Link: https://www.investmentnews.com/article/20180807/FREE/180809943/unregistered-advisers-linked-to-latest-alleged-south-florida-lending

6 SEC Alleges Florida Lender Duped KC Investors and Thousands of Others, Kansas City Business Journal, 8/30/2018
Link:

The post Two Florida Merchant Cash Advance Companies with Nationwide Investors File for Bankruptcy …
Add a comment...

Post has attachment
Birmingham Michigan Financial Adviser Charged in $4 Million Investment Scam https://brokersecuritiesfraud.com/birmingham-michigan-financial-adviser-charged-in-4-million-investment-scam/

On August 9, the U.S. Securities and Exchange Commission charged a former registered representative, John C. Maccoll, who was affiliated with the Birmingham, Michigan, branch of UBS Financial Services1, with defrauding brokerage customers out of almost $4 million in what the SEC termed as a long running-investment scam. Additionally, U.S. Attorney Matthew Schneider charged Maccoll with wire fraud.

The scam that Maccoll perpetrated on his victims had many of the red flags, or aspects of concern, which investors are warned to be wary of when investing their hard-earned money.

Maccoll selected his victims from among his UBS Financial Services clients, so there were already long-standing relationships and trust between Maccoll and his clients. Many were elderly and retired and invested through their retirement accounts according to the SEC.2 Macoll told those 15 select customers that they could get in on this highly-sought-after private fund investment which would net them annual investment returns as high as 20 percent and give them investment growth potential that was better than the growth they received in their brokerage accounts. This is one of the primary red flag items to look out for when investing. If the promised return on investment seems too good to be true, it probably is not true.

According to the SEC, Maccoll told his investors not to tell anyone about the deal because he could not open the deal to everyone. Leading investors to believe they are getting in on an exclusive deal, that is only available to a select or limited amount of people, is another warning sign that the investment offering may be a scam. He also had investors transfer money or write checks to his personal accounts.3 This is a highly irregular way of doing business which his potential investors should have taken as a warning sign to not invest in his scheme. Instead, they should have contacted the SEC or local law enforcement.

Maccoll used the name of a real family of alternative investment funds to lend legitimacy to his fraudulent offering. He had told investors that they should expect little information such as a prospectus, trade confirmations or account statements, directly from the fund. Again, Maccoll’s statements about information flow should have made potential investors wary of this investment. At one point he did develop and send some of his customers fake account statements reflecting fictitious returns on their investments. In fact, errors and misspellings on an account statement Maccoll issued were what prompted one of his investors to contact federal authorities.

The SEC Complaint alleges that Maccoll spent nearly $3.6 million of the $4 million he received from investors on his own personal expenses. He did pay out $400,000 in Ponzi-like payments to certain customers in order to keep the scam going. By April 2018, Maccoll had less than $7,000 remaining in his bank accounts. 4

If you have questions about investment fraud, financial schemes, broker misconduct, or about your broker’s management of your account, please contact our Securities Law Firm at: 313-334-7767 for a Free case evaluation. We have been helping investors recover losses from fraudulent financial advisors for over 20 years!

__________________________

1,3 Birmingham financial adviser charged with stealing $3.7M from clients, Detroit Free Press, August 10, 2018
Link: https://www.freep.com/story/news/local/michigan/oakland/2018/08/10/birmingham-financial-advisor-embezzlement/961780002/

2 SEC Charges Michigan Investment Professional in an Investment Scam Targeting His Brokerage Customers, SEC, August 9, 2018
Link: https://www.sec.gov/litigation/litreleases/2018/lr24230.htm

4 U.S Securities and Exchange Commission v. John C. Maccoll Complaint, 2018
Link:

The post Birmingham Michigan Financial Adviser Charged in $4 Million Investment Scam appeared first on Broker Securities Fraud Attorney.
Add a comment...

Post has attachment
SEC Charges Major Investment Firms with Misconduct https://brokersecuritiesfraud.com/sec-charges-major-investment-firms-with-misconduct/

The Securities and Exchange Commission (SEC) has been busy protecting investors this summer and has brought charges against some larger investment firms, including Morgan Stanley Smith Barney and Merrill Lynch.

Morgan Stanley Smith Barney (MSSB) was charged by the SEC with failing to detect or prevent misappropriation of client funds.

On July 29, MSSB, without admitting or denying the findings, agreed to pay a $3.6 million penalty and to accept certain undertakings for its failure.1 MSSB’s insufficient policies and procedures were brought to light in connection with an SEC filing against one of its advisory representatives, Barry F. Connell, who worked out of MSSB New Jersey office. The SEC alleged in its February 2017 complaint that Connell conducted more than 100 unauthorized transactions by using falsified authorization forms misrepresenting that he received verbal requests for the clients.2 The filing alleged that Connell misused or misappropriated approximately $7 million out of four advisory clients’ accounts, over the period of nearly a year, which he used to rent a home in suburban Las Vegas and to pay for other items such as a country club membership and private jet service. In addition to the SEC filing, Connell is also facing criminal charges for his actions. “Investment advisers must view the safeguarding of client assets from misappropriation or misuse by their personnel as a critical aspect of investor protection,” said Sanjay Wadhwa, Senior Associate Director of the SEC’s New York Regional Office. “… Morgan Stanley fell short of its obligations in this regard.”3

Merrill Lynch, Pierce, Fenner & Smith was charge on June 19 with misleading customers about how their orders were handled. Merrill Lynch was censured by the SEC and agreed to settle the charges, admit wrongdoing, and pay a $42 million penalty4 in this case which involved Merrill Lynch falsely telling customers that it had executed orders when it had used other broker-dealers, including proprietary trading firms and wholesale market makers. The company then engaged in a practice it called “masking,” reprogramming their systems to falsely report execution venues, altering records and reports, and providing misleading responses to customer inquiries. “Institutional traders often make careful choices about how and where their orders are sent out of a concern for information leakage,” said Joseph Sansone, Chief of the SEC’s Enforcement Division’s Market Abuse Unit.5 “Because of masking, customers who had instructed Merrill Lynch not to route their orders to third-party broker-dealers did not know that Merrill Lynch had disregarded their instructions.”

Merrill Lynch admitted to the SEC that it actually took steps to ensure customers did not learn about this misconduct.

While investors generally can assume that large investment firms have safeguards in place to protect their investments, transactions and sensitive information, these SEC filings affirm once again that investors have to remain diligent. Investors should always review statements and other documentation, ask questions when they have concerns or do not understand the information provided, continually monitor their investments and contact the SEC if they suspect fraud or misconduct by their investment advisor.

If you believe you have been a victim of securities or investment fraud or have questions about your broker’s management of your account, please contact our Michigan Securities Law Firm today. We have helped countless individuals recover from investment losses. Call 313-334-7767 today for your free case evaluation.

__________________________

1, 3 SEC Charges Morgan Stanley in Connection with Failure to Detect or Prevent Misappropriation of Client Funds, SEC, June 29, 2018
Link: https://www.sec.gov/news/press-release/2018-124

2 SEC Charges Financial Adviser with Stealing from Client Accounts, SEC, February 3, 2017
Link: https://www.sec.gov/news/pressrelease/2017-41.html

4,5 Merrill Lynch Admits to Misleading Customers about Trading Venues, SEC, June 19, 2018
Link:

The post SEC Charges Major Investment Firms with Misconduct appeared first on Broker Securities Fraud Attorney.
Add a comment...

Post has attachment
Southfield Investment Adviser Fined and Barred by the SEC | Michigan Securities Attorney

Broker fined, barred by SEC for cherry-picking

By Ryan Neal
Investment News

SEC issues cease-and-desist order to brokerage, trader Agency says Roger Denha unfairly allocated investment profits to personal, family accounts SEC alleges broker obtained $412,230 in realized and unrealized gains. The Securities and Exchange Commission is barring and fining Roger Denha, an investment adviser with Southfield-based BKS Advisors LLC, for allegedly engaging in “cherry-picking.” According to an SEC cease-and-desist order, Denha bought securities in an omnibus account and waited to allocate them until after they increased or decreased in price. Denha then disproportionately allocated profitable trades to his personal and family accounts, while allocating unprofitable trades to his advisory clients. He conducted this scheme from January 2012 to November 2017 to obtain $412,230 of realized and unrealized gains, the SEC filing alleges.
By knowingly allocating trades to favored accounts at the expense of others, the SEC said Denha violated a rule prohibiting investment advisers from employing any device, scheme or artifice to defraud clients. In addition to barring Denha, the SEC ordered a disgorgement of the gains plus $35,388 of interest. He was also fined $169,000. Denha, 61 of Beverly Hills, managed 197 clients and $202 million in assets. He has no other disciplinary history. The SEC said that BKS failed reasonably to supervise Denha and ordered the firm to pay a $75,000 civil penalty under a settlement agreement. BKS did not immediately respond to requests for comment Monday.

The Securities Attorneys at Peter C. Rageas are experienced in all type of securities litigation, investment fraud, stock broker negligence and more. If you have questions about investment fraud, financial schemes, broker misconduct, or about your broker’s management of your account, please contact our Securities Law Firm at: 313-334-7767 for a Free case evaluation.

The post Southfield Investment Adviser Fined and Barred by the SEC | Michigan Securities Attorney appeared first on Broker Securities Fraud Attorney.
Add a comment...

Post has attachment
Birmingham Financial Adviser is Charged with Stealing $3.7 Million https://brokersecuritiesfraud.com/birmingham-financial-adviser-is-charged-with-stealing-3-7-million/

Stealing other people’s money is a brazen act of violation on many levels. When the act is committed by an investment broker or financial adviser it is investment fraud at its worst. The following article is a top story in the Detroit area that we think you will find informative. The broker is responsible and will be held accountable for his unscrupulous acts.

Avoid investment losses and becoming a victim. It is critical to investigate the company or broker through which you are investing with.

The home page of www.Investor.gov prominently displays the link to check out your investment professional. By selecting the “Search the Database” box you are automatically sent to a screen which asks for your investment professional’s name and firm name.

Financial adviser in Birmingham charged with stealing $3.7 million from clients

John Maccoll worked at UBS Financial Services Inc. He allegedly embezzled from more than a dozen people. UBS says it will reimburse affected clients. Read the full article here.

If you believe you have been a victim of securities or investment fraud, please contact our Michigan Securities Law Firm today. The Securities Attorneys at Peter C. Rageas are experienced in all type of securities litigation, investment fraud, stock broker negligence and more! We have helped countless individuals recover from investment losses. Call today for your free case evaluation.

The post Birmingham Financial Adviser is Charged with Stealing $3.7 Million appeared first on Broker Securities Fraud Attorney.
Investor.gov
Investor.gov
investor.gov
Add a comment...

Post has attachment
Schorsch REIT Listing a Billion-Dollar Disaster

Non traded real estate investment trusts have a history of fraudulent acts. Investors have lost millions due to false portrayals of companies that appear to have value and promise but actually don’t.

We found the following article in Investment News on this topic interesting and informative. We hope you do too.

Schorsch REIT listing a billion-dollar disaster for investors

The share price of American Finance Trust Inc. has plunged since trading began on July 19, and advisers deserve answers
The history of nontraded real estate investment trusts is littered with stories of companies that appear to have value and promise one day only to reveal a hideous portrait the next.
Several REITs that raised money in the years before the 2008 credit crisis and stock market crash repeatedly proved this rule. Sold by a broker for $10 per share in 2005 or so and listed on a client’s account statement for the same amount for years, those REITs’ value plummeted in 2009, 2010 and 2011.

Known as zombie REITs, these real estate companies dug their own graves by overpaying for real estate at the top of the market, taking on bad debt and paying high fees to their management.

Some of the REIT managers who saw their companies take savage hits in value included Behringer Harvard, Cornerstone, Inland and KBS.

As regular readers of Investment News know, we covered the collapse of these companies closely. Financial advisers in the mid-2000s promised many of their clients that investing in nontraded REITs was reasonable and stable. Real estate never lost value, was the pitch, combined with promised returns annually of 6% to 7%.

For their trust, investors lost millions. Read the Full article here.

This case provides a good example of the need for investors to research the companies in which and through which they are investing. The Securities Attorneys at Peter C. Rageas are experienced in all type of securities litigation, investment fraud, stock broker negligence and more! If you have questions about investment fraud, financial schemes, broker misconduct, or about your broker’s management of your account, please contact our Securities Law Firm at: 313-334-7767 for a Free case evaluation.

The post Schorsch REIT Listing a Billion-Dollar Disaster appeared first on Broker Securities Fraud Attorney.
Add a comment...

Post has attachment
SEC Improves Assistance to Investors through New Investor Protection Search Tool and Roundtables with Chairman https://brokersecuritiesfraud.com/sec-improves-assistance-to-investors-through-new-investor-protection-search-tool-and-roundtables-with-chairman/

In their ongoing effort to improve investor protection, the U.S. Securities and Exchange Commission (SEC) has recently launched two new initiatives. One is a new search tool aimed at helping investors avoid potential investment fraud.1 The other initiative is “Tell Us,” an outreach to the public asking for their input on the SEC’s efforts to enhance retail investor protection and promote choice and access to a variety of investment services and products.

The new search tool, called SALI, which is short for SEC Action Lookup for Individuals, assists investors in identifying registered and unregistered individuals who have been involved in past SEC enforcement actions and against whom federal courts have entered judgments or the SEC has issued orders. SALI can be accessed on the web by going to https://www.sec.gov/litigations/sec-action-look-up.2 To run a search you need to include at least two letters of the individual’s last name.

The SALI database only includes individuals from SEC actions filed between October 1, 2013 and March 1, 2018.3

The SEC will periodically update this search tool, adding individuals from newly-filed actions. They will also eventually be adding individuals from actions that were filed before October 1, 2013. Only those individuals who have been named as defendants in SEC federal court actions or respondents in SEC administrative proceedings are listed. The new tool’s results are not limited to registered investment professionals, as with many existing online search functions.

Search results include individuals against whom a judgment or order has been issued, including individuals who settled, defaulted, or contested their actions, provided a judgment or order was issued against them. The SALI database does not include individuals whose cases are currently pending at the trial court or those against whom no judgment or order was issued. Relief defendants named in district court actions are also not included in the database. As always, when making investment decisions it is advisable to do other research in addition to using resources like the SALI database. The SEC provides a wealth of educational resources at www. Investor.gov.4

In an effort to gauge how well the SEC is doing in their efforts to protect retail investors, they have also recently launched the “Tell Us” program. SEC Chairman Jay Clayton and executive staff members will be available at a series of round table discussions with Main Street investors which will be held across the country. These roundtables are scheduled for July and will be held in Miami; Washington, D.C.; Philadelphia; and Denver. “It has been incredibly informative and gratifying to talk with investors in their own backyards about their expectations regarding relationships and their investment professionals,” said Chairman Clayton. 5

Roundtables have already been held in Houston and Atlanta. Dates, times and RSVP information can be found at https://www.sec.gov/news/press-release/2018-125.6 Attendees should be retail investors who work with a financial professional and have no affiliation with the financial services industry. Some roundtables will be taking place in SEC buildings so attendees will have to have photo identification and will be subject to a security scan. The SEC is encouraging those who are unable to attend a roundtable, to provide their input through the SEC website, https://www.sec.gov/tell-us.7

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.

We have been helping investors recover financial losses for over twenty years!

__________________________

1 SEC Launches Additional Inventor Protection Search Tool, SEC, May 2, 2018
Link: https://www.sec.gov/news/press-release/2018-78

2 SEC Action Lookup – Individuals: Individuals with Court or Commission Orders Entered Against Them
Link: https://www.sec.gov/litigations/sec-action-look-up

3 SEC Action Lookup – Individuals: Search Tips
Link: https://www.sec.gov/sec-action-lookup-information

4 U.S. Securities and Exchange Commission Investor Website
Link: https://www.investor.gov/

5, 6 SEC Chairman Clayton Invites Main Street Investors to ‘Tell Us’ About Their Investor Experience, Press Release, June 29, 2018
Link: https://www.sec.gov/news/press-release/2018-125

7 Tell Us About Your Investor Experience, U.S. Securities and Exchange Commission
Link: https://www.sec.gov/tell-us

The post SEC Improves Assistance to Investors through New Investor Prot…
Add a comment...

Post has attachment
Wells Fargo Advisors Settles SEC Charges

The SEC, Securities and Exchange Commission, has charged Wells Fargo Advisors with misconduct in the sale of MLIs to retail investors. MLIs are known as market-linked investments. This financial misconduct has imposed substantial costs on retail customers.

Without admitting or denying the findings in the SEC’s order, Wells Fargo has agreed to settle and return the ill-gotten gains as well as pay a penalty.

The following article illustrates how important it is for brokers to do their homework and be held accountable before they make recommendations to their retail customers.

Wells Fargo Advisors Settles SEC Charges for Improper Sales of Complex Financial Products

Misconduct Imposed Substantial Costs on Retail Customers

The Securities and Exchange Commission today announced that Wells Fargo Advisors LLC agreed to settle charges of misconduct in the sale of financial products known as market-linked investments, or MLIs, to retail investors.

According to the order, the SEC found that Wells Fargo generated large fees by improperly encouraging retail customers to actively trade the products, which were intended to be held to maturity. As described in the SEC’s order, the trading strategy – which involved selling the MLIs before maturity and investing the proceeds in new MLIs – generated substantial fees for Wells Fargo, which reduced the customers’ investment returns.

The order further found that the Wells Fargo representatives involved did not reasonably investigate or understand the significant costs of the recommendations. The SEC found that Wells Fargo supervisors routinely approved these transactions despite internal policies prohibiting short-term trading or “flipping” of the products. Read Full article here.

If you have questions about investment fraud, financial schemes, broker misconduct, or about your broker’s management of your account, please contact our Securities Law Firm at: 313-334-7767 for a Free case evaluation.

We have been helping investors recover losses from fraudulent financial advisors for over 20 years!

The post Wells Fargo Advisors Settles SEC Charges appeared first on Broker Securities Fraud Attorney.
Add a comment...

Post has attachment
SEC Debuts Website to Demonstrate Ease of Defrauding Investors https://brokersecuritiesfraud.com/sec-debuts-website-to-demonstrate-ease-of-defrauding-investors/

SEC Debuts HoweyCoins.com Website to Demonstrate Ease of Defrauding Investors and to Educate on Scam Warning Signs

Investors often are introduced to tempting, but fraudulent, investment offers through solicitations on the World Wide Web. The Securities and Exchange Commission (SEC) recently introduced a website at www.HoweyCoins.com that does just that.

Now, even the institution that is charged with protecting United States investors has gotten into the act of scamming them. But it is all for a good cause. That cause is investor education.

The HoweyCoins.com website mimics a bogus initial coin offering (ICO) which touts a coin for travel investment opportunity with the goal of educating investors about what to look for before they invest in a scam.

The website was built relatively quickly by SEC personnel.

“Fraudsters can quickly build an attractive website and load it up with convoluted jargon to lure investors into phony deals,” said Owen Donley, Chief Counsel of the SEC’s Office of Investor Education and Advocacy. “But fraudulent sites also have red flags that can be dead giveaways if you know what to look for.”1

The HoweyCoin.com website purposely has red flags, including a difficult to understand explanation of the investment opportunity, promises of a guaranteed return and a call to action that makes the investor believe that if they don’t act quickly this tremendous deal will slip through their hands.

The first thing you see on the HoweyCoin.com website is a countdown clock. It touts a 15 percent discount during the “Pre-ICO” sale and shows a clock ticking down the minutes until the sale is over. There is probably no better way to create urgency to act than a ticking clock.

Unfortunately for investors, that clock can be likened to a ticking time bomb, because acting in haste, without doing research on the investment, is how many of these scams are able to cause such financial devastation to investors. Near the “Buy Coins Now” selection is an even better offer of 25 percent off if coins are purchased by a certain date.

The site also contains a white paper which is loaded with that convoluted, not easy-to-understand jargon. By using the term ‘white paper’ the investment appears more legitimate as that term is often used in academic and corporate arenas.

Another clear red flag warning in the white paper is that they don’t disclose the names of any of the “large, well-known travel service providers — international hotel and resort brands, airlines, travel industry-related comparison websites, car rental companies and on-demand online care services, large chain restaurants located in travel hotspots, etc.” who will accept these coins for travel because these negotiations and agreements are all currently subject to nondisclosure agreements.2

If you had stumbled upon the www.HoweyCoins website and finally decide to invest, the site directs you to a “Buy Coins Now” box. If you click on this, the first thing you will see is a statement that reads, “If you responded to an investment offer like this, you could have been scammed — HoweyCoins are completely fake!”3

The site then points out some of the red flag warnings in the HoweyCoins offering and tells you why these signs can be warnings of a scam. These include claims of high guaranteed returns, celebrity endorsements, claims of being SEC compliant, ability to pay for the investment with a credit card, and pump and dump scams. The site has links to a number of other resources to learn more about what to look for with these investment scams.

Investor education on the ways fraudulent companies perpetrate these scams is a powerful way to stop vulnerable people, especially seniors, from losing their life savings. Taking the time you need to thoroughly research an investment, and the people selling you that investment, is the best way to prevent investment fraud.

If you have questions about investment fraud, financial schemes, broker misconduct, or about your broker’s management of your account, please contact our Law Firm at: 313-334-7767 for a Free case evaluation.

We have been helping investors recover losses from fraudulent financial advisors for over 20 years!

__________________________

1 The SEC Has an Opportunity You Won’t Want to Miss. Act Now!, U.S. Securities and Exchange Commission Press Release, May 16, 2018
Link: https://www.sec.gov/news/press-release/2018-88

2 Howey Coins White Paper, May 2018
Link: https://www.howeycoins.com/files/howeycoin_white_paper.pdf

3 ICO Howey Coins, U.S. Securities and Exchange Commission
Link:

The post SEC Debuts Website to Demonstrate Ease of Defrauding Investors appeared first on Broker Securities Fraud Attorney.
Add a comment...

Post has attachment
SEC Files Charges in International Investment Scheme

No investment is foolproof or risk free. Your investment advisor or stockbroker has a fiduciary duty to disclose all relevant facts so that you can make an informed decision. Deceptive financial schemes result in massive investment losses.

The following article highlights a sophisticated international scheme that exploits retail investors. It is manipulative and deceptive acts that undermine the integrity of our markets.
It is critical to investigate the company or broker through which you are investing with.

SEC Files Charges in International Manipulation Scheme

Washington D.C.

The Securities and Exchange Commission today charged four individuals for their roles in a fraudulent scheme that generated nearly $34 million from unlawful stock sales and caused significant harm to retail investors.

According to the SEC’s complaint, the defendants manipulated the market for and illegally sold the stock of microcap issuer Biozoom Inc. As part of the alleged scheme, the defendants hid their ownership and sales of Biozoom shares by using offshore bank accounts, sham legal documents, a network of nominees, anonymizing techniques, and other deceptive practices.

The defendants also allegedly directed a wide-ranging promotional campaign and employed sophisticated, manipulative trading techniques to artificially inflate Biozoom’s share price. The alleged scheme culminated in the defendants’ illegal sales of Biozoom, which netted them nearly $34 million in unlawful proceeds. Read the full article here

If you believe you have been a victim of securities fraud or investment fraud, please contact our Michigan Securities Law Firm at 313-334-7767. We have successfully represented hundreds of investors in stockbroker mediation, arbitration, and litigation claims. Take Action to Protect Your Rights! Call today for your free case evaluation.

The post SEC Files Charges in International Investment Scheme appeared first on Broker Securities Fraud Attorney.
Add a comment...
Wait while more posts are being loaded