Representation in Puerto Rico -- SEC charges investment manager

The U.S. Securities and Exchange Commission recently accused an investment group and its manager for fraudulently raising tens of millions of dollars from investors. The manager is facing multiple securities fraud charges, including violating federal securities laws. Finding the right representation in Puerto Rico may be a priority for investors as these actions allegedly took place outside of New York, primarily in Puerto Rico and another state.

The SEC's complaint asserts that the investment group's manager started his fraudulent activities back in 2013, and continued up through 2020. Around 30 investors reportedly put a total of $39 million into what they thought was a legitimate investment opportunity. It was purportedly a fraudulently run hedge fund using a sub-fund structure, which he used to raise the funds for other purposes.

The Coronavirus Risk - Leverage Exposed in Volatile Market

The old adage "All boats float until the tide goes out" is aproproriate in these turbulent times. The market gyrations of last week will undoubtedly continue until the thick clouds of Cov-19 uncertainty clear up. The receding markets will expose portfolios that are subject to leverage and the resulting exponential loss of capital in a severe market downturn. For clients who are not speculators and unaware of the risk, the use of leverage in their portfolio may be unsuitable. Investors, who were exposed to this unsuitable risk through recommendations of their investment advisors, may have legitimate claims to recoup their losses. Particulary at risk are retirees or those approaching retirement who, through unsuitable use of margin or leveraged investments in managed accounts, lost irreplacable savings resulting from unsuitable recommendations or investment "strategies". For thirty years my law firm has recouped losses for investors who have been vicimized by their broker's unsuitable recommendations, unauthorized trading and improper use of leverage. 

Securities fraud -- Ponzi schemes are hitting investors hard

Ponzi schemes prey on investors who think they are making smart, sound decisions. The average person can lose quite a bit in one of these schemes. It is important to understand that Ponzi schemes are not just a problem of the past.

In 2019, authorities discovered 60 separate Ponzi schemes across the United States. There were $3.25 billion in investor funds wrapped up in those schemes. That is more than double what they found in 2018. The last time authorities uncovered anywhere near this amount was back in 2010.

My firm has uncovered numerous ponzi schemes including schemes operated by a senior financial advisor at Oppenheimer & Co. Inc. and Ladenburg Thalmann. We have recovered millions of dollars on behalf of our clients who have been victiimized by ponzi schemes getting victims and their families back on their feet financially, emotionally and spiritually.    

Scammers frequently target the elderly for securities fraud

Money is almost a universal concern among adults, but especially for the elderly who might be living on fixed incomes and limited retirement savings. New York scammers understand this all too well and use it to their advantage when committing securities fraud and elder financial abuse. These acts of fraud can -- and often do -- deplete much of the victims' life savings.

One example of this type of fraud involves an 86-year-old man who thought he had won two different multimillion dollar sweepstakes. But the people who told him about his lucky wins insisted that he had to pay the taxes for the winnings before they could hand over the money. His bank refused to allow him to send approximately $93,000 to the scammers, but he got around this by opening up another account. There were never any winning sweepstakes, and he lost all that money.

Men convicted of securities fraud sentenced to federal prison

Investors might not hear much about Ponzi schemes these days, but that does mean they are gone. In fact, many people are still running these investment schemes in New York. This form of securities fraud heaps huge losses on those who were led to believe that they were making sound investments.

Two men were recently sent to prison for wire fraud. Investigators say they committed that fraud while running an illegal Ponzi scheme that defrauded investors out of more than $22 million. Both men are 46 years old, and a judge sent one of them to federal prison for 240 months and sentenced the other to 136 months. Both must pay $9,103,088.12 in restitution. This comes out to a total of $18,206,176.24, several million shy of the $22 million they reportedly scammed from investors.

Former stockbroker on trial, accused of securities fraud

A former stockbroker recently went to trial after he pleaded not guilty to a number of serious charges. Charges for mail and wire fraud are just two of the 11 criminal counts. Investors in a state bordering New York say they suffered significant losses because of the broker's actions, which is sadly not an uncommon outcome of securities fraud.

The defendant worked in the securities industry for 15 years, during which time he was frequently considered one of the top brokers in the United States. Despite this reputation, he was fired on five different occasions. At no point was he forbidden from working in the industry.

New rule may allow more people to take part in pre-IPO investing

Pre-IPO investing has always been walled off from most Americans. Under longstanding rules, these stock purchases were generally limited to people deemed “accredited investors” – those with at least $1 million in assets outside the home, or an income of at least $200,000 annually.

2020, however, could see significant changes to the definition of an accredited investor, opening the door for more people to consider a pre-IPO investment.

Investment fraud victim secures $900,000 in damages

There are many benefits to investing, including creating sources of passive income and building wealth. Aside from the many benefits there is a risk of losing money, but perhaps investment fraud is perhaps an even greater risk. Some investment advisers and brokers in New York are eager to take advantage of clients, sometimes defrauding them of hundreds of thousands of dollars.

An out-of-state financial adviser is facing 41 different criminal counts for illegally moving money out of clients' accounts and into his own personal ones. Those counts include charges for financial exploitation, investment adviser fraud and more. There were at least three clients who lost money, and the adviser's own father was apparently among the victims.

3 Ways to recognize a pyramid scheme

A pyramid scheme is an investment scheme that requires investors to recruit new investors with the promise of being reimbursed with the money that those later investors contribute.

Unfortunately, many schemers manage to get away with running pyramid schemes because they operate under the guise of multi-level marketing practices. In New York, multi-level marketing practices are legal, but pyramid schemes are not.

Did my broker commit securities fraud?

There is no such thing as risk-free investing. This is why New York investors should be as informed as possible when deciding how and when to invest their money. Like many others, you probably trusted your broker to give you everything you needed to make an informed decision. However all too often "investment advisors" fail to fulfill this obligation. In this situation, unfortunately, he or she may have committed securities fraud.

Brokers are required to provide investors with all of the material facts related to an investment. This has to happen before handing over any money. Even if you trust your broker and think that he or she makes great decisions and recommendations, you cannot be certain whether a specific investment is the right choice for you until you have been given all information related to returns, risks and more.

Contact Timothy J. Dennin

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