Securities fraud is unfortunately common across the U.S. and Puerto Rico. It can take shape in many different ways, but the result is always that someone loses a lot of money inadvertently. A recent fraud was discovered in Puerto Rico involving a city and an investment advisor.
Unregistered investment advisor facing fraud charges
Recently the Securities and Exchange Commission charged an unregistered investment advisor with fraud against a city in Puerto Rico. The man allegedly told the city of Mayaguez that he could invest $9 million of their funds with no risk to the principal and earn the city annual returns of 10%.
He took the $9 million and put it into U.S. Treasury notes and took out a margin loan using the notes as collateral. He then misappropriated over $4 million by transferring various sums to himself, his associates, and other entities controlled by him.
The advisor lives in Orlando and is facing fraud charges in federal court.
Securities fraud attorney
If a person or organization believes they have been the victim of securities fraud, it is important that they obtain legal counsel immediately. Whatever the circumstances, it is important to have legal counsel on your side if you are the victim of securities fraud.
An attorney can provide legal representation for a wide variety of victims, including:
- Investor misrepresentation
- Stock manipulation
- Hedge fund losses or Ponzi schemes
- Fraudulent representations regarding IPOs
- Marketing of principal-protected notes as safe investments
- Investor losses with Puerto Rico municipal bonds
- Unsuitable investment schemes