Securities Fraud Attorney & Investment Fraud Case Blog

NutraCea CEO Faces Securities Fraud Charges in Arizona

Thu, 10 May 2012 08:00:00 EST

The former CEO of NutraCea will be facing securities fraud charges after allegedly defrauding investors. An investment fraud attorney reports.

Bradley David Edson, former CEO of NutraCea, is facing fraud charges related to an alleged investment fraud scam. NutraCea is based in Scottsdale, Arizona, and deals in products made of stabilized rice bran. Edson joined NutraCea in 2005 and was also formerly president and CEO of Vital Living, a position that he held from 2001 – 2004. The arraignment in this case has been scheduled for May 2, 2012, in Phoenix.

According to federal prosecutors in the case, Edson was responsible for artificially inflating NutraCea’s stock prices in order to defraud investors. Edson allegedly had a hand in fraudulently inflating sales and net profit by $750,000 for 2006 and more than $3.5 million in 2007. The company allegedly reported these inflated profits and sales in news releases, which also omitted information related to the company’s acquisitions.

There were also issues with how income was recorded for some sales and the collection of a $600,000 debt-acquisition kickback by Edson.

If you have lost money to a Ponzi scheme, securities fraud, stockbroker misconduct, or any other kind of financial fraud, don’t hesitate to speak with an experienced investment fraud attorney about your situation. The securities fraud attorneys with the Law Firm of Meyer Wilson represent investors nationwide in stockbroker mediation, arbitration, and litigation in order to recover investment losses.

For more information about what to do after you have been taken in by financial fraud or stockbroker misconduct, request your FREE copy of David P. Meyer’s helpful book Five Signs of Investment Fraud …And What to Do if it’s Happened to You.

College Students Vulnerable to Online Investment Scams

Thu, 10 May 2012 08:00:00 EST

College students often get started investing online, but it can be risky. Learn more about online investment scams from an investment fraud attorney.

As the economy continues to be sluggish, many college students are looking toward long-term investments to secure a stable financial future – and many of them are doing it online. Unfortunately, many of these new investors are inexperienced, and they end up falling prey to Ponzi schemes, unscrupulous brokers, and other online investment scams.

While planning your financial future early is never a bad idea, it is important to choose your investments wisely and do your research before handing over your cash. Turning to the Internet may be natural to the younger generation in this technological day and age, but remember to be careful. Taking advantage of online investment opportunities can be risky no matter what your experience level.

As an investment fraud lawyer, I’d like to highlight these two major tricks you may see online:

Social Media Investment Fraud. A popular trick is to become your “friend” on social media sites before making a pitch for a “sure thing” investment. Treat any investment recommendations you get from online friends with suspicion.
“Pump and Dump” Schemes. Fraudsters may try to “pump” up a poor investment with exciting advertising, fake press releases, and glowing testimonials before “dumping” their shares and running with the cash – leaving investors holding worthless stocks.

For more information, our investment fraud attorneys would be happy to send a completely FREE copy of Five Signs of Investment Fraud …And What to Do if it’s Happened to You, which is a helpful resource for investors of any skill level.

If you have already lost money in a suspected online investment scam, reach out to an experienced investment fraud lawyer at 1-866-8-BROKER (1-866-827-6537) today. We would be happy to discuss your situation in a completely free and confidential legal consultation.

South Carolina Man Charged in Alleged Silver Investment Scam

Tue, 08 May 2012 08:00:00 EST

An investment fraud attorney explains more about the allegations against an Anderson County council member in a South Carolina precious metal investment scam.

Ronnie Wilson, of South Carolina, has been accused of running a Ponzi scheme related to a precious metal investment. According to prosecutors, 900 investors were involved and invested approximately $90 million total with Wilson’s Atlantic Bullion & Coin. Actual losses have been estimated at $59 million. Wilson is well known for serving on the Anderson County council, as national commander of the Sons of Confederate Veterans, and formerly as a member of the State Board of Education.

According to the allegations against him, Wilson altered documents to increase the purchase price of the metals, which helped keep the alleged Ponzi scheme in operation. Wilson also apparently told some customers and employees that the silver in question was being held in a Delaware depository; however, no evidence of that has yet been found in the case. The depository in Delaware has no record of an account, and one of Wilson’s employees stated that she did not personally see any documents from the depository come through the office.

In 1996, Wilson had previously been ordered to stop selling securities by the South Carolina attorney general. South Carolina state law does not require that information to be disclosed to clients.

The judge in the case has been asked to appoint a receiver to go through Wilson’s assets and decide on fair distribution.

If you are in need of an investment fraud attorney after losing money to precious metal investment fraud, call the Law Firm of Meyer Wilson to discuss your situation. Our investment fraud lawyers have successfully represented hundreds of clients nationwide in stockbroker mediation, arbitration, and litigation, and we look forward to working with you to recover your investment losses.

FINRA Fines for ETFs

Tue, 08 May 2012 08:00:00 EST

FINRA Levies Fines for Sales of Leveraged and Inverse Exchange Traded Funds (ETFs), An Investment Fraud Attorney Overviews FINRA's Attempt to Crack Down on ETFs

Not unexpectedly, FINRA just levied fines against several major brokerage firms for their misconduct in the sales of leveraged and inverse ETFs.

On May 1, 2012, UBS AG, Citigroup Inc Morgan Stanley and Wells Fargo & Co agreed to pay more than $9.1 million for selling inverse and leveraged exchange-traded funds "without reasonable supervision," according to a Financial Industry Regulatory Authority (FINRA) statement as reported by Reuters early this week.

These fines are for sales made in an 18 month time frame (January 2008 – June 2009).

Why is June 2009 Significant?

Because FINRA actually thinks that its dissemination of a Notice to Members in June '09 (reminding those members of their obligations to customers when selling non-traditional ETFs) resulted in brokerage firms immediately fixing any problems they had regarding the sales of those products.

FINRA and other regulators began issuing these kinds of warnings in 2009 about the sale of these investments. FINRA itself was worried that brokers were selling them to customers who were not appropriate for these kinds of investments...those focusing on a conservative investment profile.

In reality, based on investors who have contacted us, we don’t believe that any such “June 2009 bright line” exists. It does not appear that the notice and warnings issued by FINRA were entirely heeded.

It would be nice if that "bright line" did exist, but it doesn’t.

We've started a resource site for investors who may have lost money in ETFs, currently hold ETFs, are considering purchaseing ETFs or are looking to research investment options. Click here to review an in-depth look at ETFs as presented by the Meyer Wilson investment fraud attorneys.

About our firm:

The law firm of Meyer Wilson represents individuals across the country who have been harmed by investment fraud.
All of our cases are handled on a contingency fee, and our investment fraud lawyers do not request retainers of any kind. To schedule a free consultation with an experienced investment fraud lawyer, please call us today at 614-224-6000 or toll-free at 1-866-827-6537.

Read Meyer Wilson's FREE book for more information about your rights and potential recovery: Five Signs of Investment Fraud... And What to Do if it's Happened to You.

Investment Fraud Attorney Explains Easy Way to Gauge Your Risk Level

Thu, 03 May 2012 08:00:00 EST

An experienced investment fraud attorney points to a free and helpful tool that will gauge your risk for investment fraud.

As an experienced investment fraud attorney, I find that many people are surprised at the behaviors that put you at risk for investment fraud. Oftentimes, it has very little to do with how much money you have or the types of investments you’re interested in; it has far more to do with seemingly unrelated factors, including whether you live alone or have signed up for the Do Not Call registry.

The Financial Industry Regulatory Authority (FINRA) is aware of this and has created a tool to help investors gauge their risk when it comes to financial fraud. This simple test walks you through a series of questions, and then displays information about your susceptibility to fraud.

How to Use FINRA’s Risk Meter

Go to FINRA’s Risk Meter page.
Answer each of the twelve simple questions to the best of your ability.
When you’re done, a meter will show your risk level on a scale of low to high, and give you tips to help you change the behaviors that put you at risk for investment fraud.

To learn more about recognizing red flags when it comes to your investments, order your FREE copy of our helpful book Five Signs of Investment Fraud …And What to Do if it’s Happened to You. Simply give us a call or fill out our quick online contact form.

If you have already been taken in by an investment scam or unscrupulous broker, speak with an experienced investment fraud lawyer today at 1-866-8-BROKER (1-866-827-6537). We would be happy to speak with you in a free and confidential legal consultation to talk about your options for recovery.

Father/Son Attorneys Team Up to Speak at 54th West Virginia Association for Justice Convention

Tue, 01 May 2012 08:00:00 EST

FOR IMMEDIATE RELEASE

Father/Son Attorneys Team Up to Speak at 54th West Virginia Association for Justice Convention

Columbus, Ohio (April 27, 2012) – Attorneys Stephen P. Meyer and David P. Meyer will address an estimated 300 legal professionals on June 7th for the 54th Annual Convention and Seminar of the West Virginia Association for Justice (WVAJ). The father-son duo will offer their combined expertise in the world of pursing claims of investment fraud as they present, “When Investment Portfolios Fail: Holding Stockbrokers and Investment Counselors Accountable.”

"This is both a great and timely honor to be invited to speak to the West Virginia Bar Association members alongside my father, who is a Past President of the Association," said David P. Meyer, founding principal and attorney at Meyer Wilson, LPA.

"The recent economy and other financial world influences have precipitated a spike in unscrupulous actions by stockbrokers and brokerage firms. We’ve seen large increases in the number of calls coming in to our law firm concerning Ponzi schemes and other investment fraud activities in just the past few months. Now is the time to examine your investments and the practices of your broker or broker firm.”

The presentation will focus on the finer nuances of identifying unethical and fraudulent activity, and the potential opportunities for recovering lost funds on behalf of the aggrieved.

David P. Meyer, Esq. is the son of attorney Stephen P. Meyer who is the namesake of his own firm, Meyer, Ford, Glasser & Radman PLLC based in Charleston, WV. Stephen has been practicing for more than 50 years and has instilled the same values and investor-advocate tenacity in his son, David, who himself has been practicing for more than 15 years.

Attorney David Meyer devotes his practice to investment fraud claims and focuses his attention and energy on cases concerning breach of fiduciary duty, churning, overconcentration, excessive activity, fraud, negligence, Ponzi and pyramid schemes, unauthorized trading, and unsuitability, in addition to arbitration and mediation services. The Meyer Wilson law firm has offices in Columbus, Ohio and Los Angels, California. Learn more about David P. Meyer, Esq. here.

About Meyer Wilson Co., LPA

The mission of the Meyer Wilson law firm is: (1) to educate individual investors about how to avoid becoming a victim of investment fraud; and (2) to raise the awareness that there are legal options available to recover losses caused by investment misconduct.

The investment fraud lawyers at Meyer Wilson have successfully represented more than eight hundred individual investors from all across the country in securities arbitration and litigation against all major brokerage firms and won verdicts, judgments and settlements of hundreds of millions of dollars in losses on their behalf.

Contact:
Jessica Hamlin, Director of Marketing and Client Relations
jhamlin@meyerwilson.com
(614) 255-2717

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SEC Charges Florida Man with Affinity Fraud Scheme

Thu, 26 Apr 2012 08:00:00 EST

SEC Charges South Florida Man in Alleged $11M Affinity Fraud Scheme

The SEC recently charged George Elia, a recent resident of Oakland Park, Florida, and Fort Lauderdale-based International Consultants & Investment Group Ltd. Corp. (“International Consultants”) with defrauding approximately 25 investors out of $11 million in an alleged investment fraud scheme.

According to the SEC’s complaint, Elia orchestrated the investment scheme through his company, International Consultants, from March 2005 to January 2012. Elia allegedly made investors believe that he could earn them exceptionally high returns by lying to them about his track record and his current trading activities.

The SEC says he falsely claimed that he had a long track record of day trading stocks and exchange traded funds to yield annual returns of up to 26%. He also allegedly told investors that his trading on behalf of other investors was rendering quarterly returns of up to 20%.

In reality, the complaint alleges, “Elia’s trading resulted in losses or only marginal gains in limited time periods.” He allegedly perpetuated the scheme by issuing falsified quarterly account statements, which showed overstated returns, to his investors.

He also is accused of misappropriating funds, and using some of the investment funds to pay his personal expenses and an associate who was responsible for introducing him to new victims. Neither Elia nor International Consultants was ever registered with the Commission as an investment adviser.

The SEC is calling the investment fraud scheme an affinity fraud scheme “in part,” because “a number of the investors were members of the gay community in Wilton Manors, Florida.” Further, many of Elia’s clients came to him through word-of-mouth referrals from friends and relatives.

"Elia's blatant fraud and cruel deceptions have wrecked the lives of investors and their families," said Eric I. Bustillo, Regional Director of the SEC's Miami Regional Office. "This is a sad lesson that investors must always be skeptical of claims of high and
steady investment returns, even when the manager is recommended by trusted friends or members of one’s own community."

About our law firm:

The law firm of Meyer Wilson represents individuals across the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind. Contact us toll-free at 1-866-827-6537 for more information or complete the online form on the top of this page and we will respond promptly.

Atlanta Man Sentenced in Securities Fraud Case Affecting 200 Investors

Wed, 18 Apr 2012 08:00:00 EST

Gregory Bartko, of Atlanta, has been sentenced to 23 years in prison by Chief U.S. District Court Judge James C. Dever III after a 13-day trial. Bartko received the sentence for his alleged part in an investment fraud scheme that affected around 200 investors. Prosecutors in the case had previously asked that Bartko be sentenced to a total of 90 years in prison.

According to court records, Bartko enticed investors with statements that their investments were insured and secure. Unfortunately, the investments are said to have been fraudulent, and Bartko is accused of using investors’ cash for his own personal expenses. A U.S. Attorney in the case, after requesting the 90-year sentence for Bartko, stated that “Defrauding decent folks out of their life savings amounts to robbing them of their dreams.”

Another man, John K. Colvin, of Tennessee, has also been sentenced in relation to the alleged investment scam. Colvin received a sentence of 25 years in prison.

Unfortunately, we see investment scam cases like this almost every day, and we know that it is the investors who end up suffering – even after the criminal case has come to a close. The securities fraud lawyers with the Law Firm of Meyer Wilson represent investors nationwide in stockbroker mediation, arbitration, and litigation against the brokers and brokerage firms who have harmed them. We have over 50 years of collective experience, and we look forward to putting that experience to work for you.

For more information about who we are and what we do, please request your FREE copy of our helpful book Five Signs of Investment Fraud …And What to Do if it’s Happened to You.

Former Professional Basketball Player Indicted in Ponzi Scheme

Tue, 17 Apr 2012 08:00:00 EST

A former player for the Milwaukee Bucks and the New Jersey Nets has been accused of running a Ponzi scheme. The scam was allegedly run by 43-year-old Tate George, of Newark, through his George Group company. The former NBA player is expected to plead not guilty to charges of wire fraud.

Prosecutors say that Tate targeted other former professional players with the alleged Ponzi scheme, which ultimately brought in $2 million for the George Group. He is said to have told investors that he was developing real estate in both Connecticut and New Jersey and that his portfolio was worth $500 million. Unfortunately, he is accused of instead using cash from new investors to pay off previous investors to keep up the appearance of legitimacy. U.S. Attorney Paul Fishman stated that, “the George Group had virtually no income-generating operations.”

It is also suspected that George used investors’ cash to pay for his own expenses, which included work on his own home, restaurant bills, gas costs, and articles of clothing. He was originally arrested in September 2010 and was released at that time on $250,000 bail.

The securities fraud attorneys with the Law Firm of Meyer Wilson serve investment fraud victims across the United States. We have represented over 800 clients in stockbroker mediation, arbitration, and litigation, and we look forward to helping you with your efforts to recover your investment losses.

For more information on how to avoid Ponzi schemes and investment scams, please request your FREE copy of our helpful book Five Signs of Investment Fraud …And What to Do if it’s Happened to You.

Investment Fraud Attorneys Team with Alzheimer's Association

Sun, 15 Apr 2012 08:00:00 EST

FOR IMMEDIATE RELEASE

Meyer Wilson Teams with Central Ohio Alzheimer's Association for Walk To End Alzheimer's

Columbus, Ohio (April 15, 2012) – The investment fraud attorneys and legal team at Meyer Wilson Co., LPA are proud to announce their title sponsorship and participation in this year's Walk to End Alzheimer's. The firm is also sponsoring a Facebook LIKE campaign through which it will contribute funds to the Alzheimer’s Association.

"Alzheimer's is a cause near to my heart," said David P. Meyer, founding principal and attorney at Meyer Wilson, LPA. "Many of my fellow attorneys and our staff have been touched by this disease."

"Alzheimer’s attracts many unscrupulous people and fraudsters. When it comes right down to it, millions of Americans are victimized by investment fraud every year, in addition to dealing with a debilitative disease. The decline in memory and cognitive abilities suffered by Alzheimer’s patients makes them prime targets for financial abuse, particularly Ponzi schemes and other inappropriate investments."

The Meyer Wilson law firm can offer hope of financial recovery in some dementia-related cases, including those that are investment or insurance based. The law firm is seeing a pronounced increase in these types of cases in the past months.

Attorney Marnie C. Lambert reflected, "It is an honor for us to be able to help those struggling with the aftermath of investment fraud at a timewhen they most need their retirement savings. For the attorneys here, it is our life passion – and working with the Alzheimer’s Association on this important event is a way to further support the elderly here in Ohio and across the nation."

Supporters of the Fight to End Alzheimer's can easily contribute to the effort at no personal expense. Meyer Wilson is currently hosting a Facebook campaign where each new "LIKE" on the company page will result in a one dollar donation to the Alzheimer's Association.

The Meyer Wilson Investor Claims Facebook page can be accessed and "liked" at www.facebook.com/meyerwilson.

The Walk to End Alzheimer’s will be held June 30, 2012 at Fred Beckman Park (OSU, Lane Avenue & Kenny Road). To participate, please visit http://www.alz.org/centralohio/.

About Meyer Wilson Co., LPA

The mission of the Meyer Wilson law firm is: (1) to educate individual investors about how to avoid becoming a victim of investment fraud; and (2) to raise the awareness that there are legal options available to recover losses caused by investment misconduct

The investment fraud lawyers at Meyer Wilson have successfully represented more than eight hundred individual investors from across the country in securities arbitration and litigation against all major brokerage firms and won verdicts, judgments and settlements of hundreds of millions of dollars in losses on their behalf.

Contact:
Jessica Hamlin, Director of Marketing and Client Relations
jhamlin@meyerwilson.com
(614) 255-2717

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Avoiding Securities Fraud: What a CRD Number Tells You

Sat, 14 Apr 2012 08:00:00 EST

As a securities fraud attorney, I constantly encourage clients, friends, and family members to always put in a little research before agreeing to an investment opportunity. If you want to check up on your broker before you decide to invest, one of the first pieces of information you should obtain is your broker’s CRD number. The CRD number allows you to access a lot of information about your broker’s background, which you can then use to decide if a broker or investment opportunity looks legitimate. You can access this information through FINRA’s BrokerCheck service.

What Information Can I Obtain with a Broker’s CRD Number?
BrokerCheck allows you to access information about individual brokers and brokerage firms. When you look up an individual broker’s number, you find details about:

The broker’s history and credentials.
Complaint and disciplinary history.
Employment history over the last ten years.
Registration, licensing, and even industry exam results.

Although we often stress looking up your individual broker, it can also be helpful to look up information about the brokerage firm itself. Using a firm’s number, you can access information about the business in general and:

Licensing and registration.
Who owns the firm.
Any history of changes in name and/or ownership.
Disciplinary actions and securities arbitration awards against the firm.

If you have already suffered losses due to broker misconduct, speak with an experienced securities fraud attorney today at 1-866-8-BROKER (1-866-827-6537). We also encourage you to request your free copy of our helpful book Five Signs of Investment Fraud …And What to Do if it’s Happened to You.

Ohio Man Indicted in Alleged $40 Million Black Diamond Ponzi Scheme

Thu, 12 Apr 2012 08:00:00 EST

An Ohio man was among four men recently indicted in North Carolina in connection with an alleged investment scam. The men, including Jonathan Davey of Newark, Ohio, were charged with multiple counts related to the alleged $40 million Black Diamond Ponzi scheme.

Specifically, the grand jury indictment alleges that the men claimed to be operating a legitimate hedge fund but, in reality, they were not. Instead, the government alleges that the men were using money from investors, some of whom were elderly, to fund their own lifestyles. The government claims that, even as Black Diamond was collapsing, the group began another Ponzi scheme in its ruins.

Other defendants have already been charged in relation to this alleged Ponzi scheme.

About our law firm:
The Law Firm of Meyer Wilson is the only law firm in the state of Ohio that is exclusively dedicated to individual investor claims and class action lawsuits. Our investment fraud lawyers have successfully represented investors throughout the nation in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors who have wrongfully caused them financial harm.

To schedule a free consultation with an experienced investment fraud attorney, please call us today at 614-224-6000 or toll-free at 1-866-827-6537. All of our cases are handled on a contingency fee, and we do not request retainers of any kind.

We also invite you to read our FREE book for more information about your rights and potential recovery: Five Signs of Investment Fraud... And What to Do if it's Happened to You.

How to Choose a Stockbroker Fraud Lawyer

Thu, 12 Apr 2012 08:00:00 EST

If you believe that you have suffered investment losses due to stockbroker fraud or misconduct, it is recommended that you speak with a stockbroker misconduct lawyer as soon as possible. However, most investors who find themselves in this situation aren’t sure where to start or how to find a reputable and experienced lawyer who deals with stockbroker fraud.
What Should I Be Looking for in a Stockbroker Fraud Lawyer?
Because stockbroker fraud cases are handled very differently than other types of cases, you will need a stockbroker misconduct lawyer who understands financial fraud and FINRA proceedings. When you start the search for an attorney who is right for you, start by looking for someone who:

Has experience successfully representing investors in FINRA proceedings.
Focuses his or her practice mainly on investment fraud and stockbroker misconduct cases.
Is highly rated with rating services like Martindale-Hubbell, The Best Lawyers in America, and Super Lawyers.

Once you have narrowed your search, schedule a consultation with the attorney to talk about your situation and what steps you should take. Make sure you feel comfortable with your investment fraud attorney and that he or she can explain the complex legal road ahead of you in terms you can understand.

If you would like to speak with one of our experienced investment fraud attorneys about stockbroker fraud or another issue, please give us a call today at 1-866-8-BROKER (1-866-827-6537). If you would like more information about protecting yourself from investment scams and unscrupulous brokers, please also request your free copy of our book Five Signs of Investment Fraud …And What to Do if it’s Happened to You.

Ponzi Scheme in Florida? A Meyer Wilson Investment Fraud Lawyer Takes a Look

Tue, 10 Apr 2012 08:00:00 EST

A Fort Lauderdale real estate broker has been accused of running a Ponzi scheme by at least one family of investors. According to papers filed in a Florida court, Mr. George Elia told investors that he could get returns of 20% a year. The California family that is suing him alleges that they requested to withdraw money in 2011 and were given excuses by Mr. Elia as to why they couldn’t access their money.

Court records indicate that an accountant found that Mr. Elia transferred significant amounts of money from his business accounts to a company controlled by his wife and a realty company controlled by the couple. The accountant also informed the court of significant withdrawals to pay car dealerships, to make mortgage payments, and for other personal services.

Mr. Elia has not commented on the allegations against him.

About our firm:

The law firm of Meyer Wilson represents individuals across the country who have been harmed by investment fraud.
All of our cases are handled on a contingency fee, and our investment fraud lawyers do not request retainers of any kind. To schedule a free consultation with an experienced investment fraud lawyer, please call us today at 614-224-6000 or toll-free at 1-866-827-6537. We also invite you to read our FREE book for more information about your rights and potential recovery: Five Signs of Investment Fraud... And What to Do if it's Happened to You.

Avoiding Ponzi Schemes: California Investment Fraud Lawyer Reports

Tue, 10 Apr 2012 08:00:00 EST

As more and more Americans are struggling to build a stable financial future through wisely chosen investments, more and more con artists are out there ready to fraudulently part you from your cash. A popular securities fraud tactic is the Ponzi scheme, in which previous investors are paid off with the money coming in from new investors rather than profit from any legitimate investment.

How Can I Avoid a Ponzi Scheme in California?
As a California investment fraud lawyer, I can tell you that it can be difficult to avoid investment scams and Ponzi schemes. What it really boils down to is taking the time to find out who and what you are dealing with. When presented with any investment opportunity, you should:

Check up on your broker or advisor through your state regulator or services like FINRA’s BrokerCheck.
Research the investment itself, including its performance over time and how exactly it works.
Never give in to high-pressure sales tactics or claims that it’s a “once-in-a-lifetime opportunity.”
Always meet in person, which will give you a better idea of both who your broker is and how their firm handles clients.

For more information about avoiding Ponzi schemes, request your FREE copy of our book Five Signs of Investment Fraud …And What to Do if it’s Happened to You. If you have already lost money in a Ponzi scheme, please contact an experienced Ponzi scheme attorney today at 1-866-8-BROKER (1-866-827-6537) for a free consultation.

Woman Accused of $3 Million Investment and Securities Fraud

Mon, 09 Apr 2012 08:00:00 EST

Last month, the U.S. Securities and Exchange Commission (SEC) filed charges against Brenda A. Eschbach. The SEC alleges that Ms. Eschbach committed securities fraud, investment advisory fraud, and acted as an unregistered broker-dealer.

Specifically, the SEC alleges that Ms. Eschbach misappropriated more than $3 million in client investment funds from 2003 – 2009. According to the government, Ms. Eschbach did not invest much of the money provided by clients but instead used it to fund her own lifestyle. She then allegedly issued false and misleading account statements to those clients.

The SEC reports that Ms. Eschbach has agreed to a settlement of the civil charges. She has reportedly pleaded guilty to related criminal charges against her and is currently awaiting sentencing.

About Our Law Firm:

The Law Firm of Meyer Wilson is the only Ohio law firm that is exclusively dedicated to individual investor claims and class action cases. Our investment fraud attorneys have successfully represented investors nationwide in securities arbitration, mediation, and litigation claims against stockbrokers, brokerage firms, and financial advisors who have acted wrongfully.
We take all of our cases on a contingency-fee basis, and we do not request retainers of any kind from our clients.

To schedule a free consultation with an experienced investment fraud attorney, please call us today at 614-224-6000 or toll-free at 1-866-827-6537. We also invite you to read our FREE book for more information about your rights and potential recovery: Five Signs of Investment Fraud... And What to Do if it's Happened to You.

What FINRA Might Not Tell About Your Investment Advisor

Mon, 09 Apr 2012 08:00:00 EST

What You Should Know About Your Advisor that FINRA Might Not Tell You and Three Things You can Research About Your Investment Advisor or Broker on Your Own

Every educated investor knows that conducting proper due diligence before investing with a broker, adviser, or other financial professional is essential to investor protection. And, usually, that means researching the professional through FINRA’s BrokerCheck and/or the relevant state securities regulator. Unfortunately, many investors stop there, which is often a mistake.

First, state securities regulators and FINRA can only provide information on registered professionals whom they know about. If you use BrokerCheck to find information on a broker or your state securities regulator’s website to find information on an adviser and you come up empty handed, you should consider that a red flag that the so-called professional may not be who they appear to be.

Even if you do find information on them, however, be aware that there is a long list of information that may not be disclosed online, including:

• A complete history. If a broker has a long history, it is unlikely that the entire history will be chronicled in BrokerCheck. To obtain information on all the actions reported against a broker since he or she first became registered with FINRA, you would need to obtain a “legacy file.”

• Why a broker was terminated. FINRA’s BrokerCheck may include a record of termination, but it won’t give you a specific reason. It’s worth finding out whether the termination was due to serious misconduct – like stealing or churning accounts – or something more innocuous.

• Records and actions that have been expunged. Brokers have the right to petition for expungement of customer disputes, arbitration awards, and orders against them. If the expungement is approved, all the records are taken out of BrokerCheck’s central database, which means a search in BrokerCheck could reveal a clean record, even if the broker has been in trouble.

State securities regulators usually include more information in their reports than the information provided by FINRA, but that information can be confusing and/or buried in long reports, which may make it difficult to find. Try to verify the information you receive with a second or third source before investing with any financial professional, and consider asking for references. Unfortunately, even the best attempts at due diligence cannot protect you from investment fraud completely, but every extra step helps.

Taking these simple steps in selecting or researching your broker or advisor can make for a smarter and more secure investment experience. However, breach of fiduciary duty continues to be the most common type of claim filed with FINRA, followed by negligence, failure to supervise, misrepresentation, unsuitability claims and breach of contract.

Recently, the percentage of FINRA panel decisions in which investors were awarded damages has steadily increased - offering a positive trend for those seeking to reclaim lost investment monies. So far, a large number of the claims filed throughout 2011 - 2012 involve common stock securities and mutual funds. You can read more in our blog posting here.

If you've had a bad financial experience with an investment broker or advisor - there may be recourse. Contact us with the scope of the situation via the form at the top of this page.

About our law firm:

The law firm of Meyer Wilson represents individuals across the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind. Contact us toll-free at 1-866-827-6537 for more information or complete the online form on the top of this page and we will respond promptly.

FINRA Arbitration Panel Awards Couple Almost $1.4 Million

Fri, 06 Apr 2012 08:00:00 EST

A Financial Industry Regulatory Authority (FINRA) arbitration panel recently required LPL Financial, LLC to pay an elderly couple nearly $1.4 million. The hefty award was issued February 10, 2012.

The couple, Heinrich and Araceli Hardt, both 76, made several allegations against LPL Financial. These claims included securities fraud, elder abuse, and negligence. The Hardts purchased real estate investments from LPL Financial and allege that the broker made misrepresentations and provided misleading information about the investments.

According to Investment News, the Hardts had also filed claims against Meridian Capital Partners and Orchard Securities but those claims were later dismissed.

As is typical in FINRA arbitration awards, the arbitration panel did not explain its reasons for its decision nor did it announce which of the Hardts’ claims it used to determine liability and arrive at a financial award.

About Our Law Firm:

The Law Firm of Meyer Wilson is the only law firm in the state of Ohio that is exclusively dedicated to individual investor claims and class action lawsuits. Our investment fraud lawyers have successfully represented investors throughout the nation in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors who have caused them financial harm.
To schedule a free consultation with an experienced investment fraud attorney, please call our law firm today at 614-224-6000 or toll-free at 1-866-827-6537. All of our cases are handled on a contingency fee basis, and we will not request a retainer of any kind from you.
To learn more about your rights and potential recovery, we encourage you to read our book Five Signs of Investment Fraud... And What to Do if it's Happened to You, which is available for FREE on our website.

Insurance Agents Warned As Jail Time Results from Annuity Case Over Indexed Annuities Sold to Elderly

Fri, 06 Apr 2012 08:00:00 EST

Insurance Agent’s Jail Time In Annuity Case Serves as Warning to Other Insurance Agents

While regulators and various state authorities continue to be disturbed by the sale of “indexed” annuities, insurance agents continue to sell them. After all, the marketing pitch is great (“guaranteed” principal protection), the commissions (often 12% or more) are too enticing to pass up, and regulators’ unease never really seemed to be an issue.

That is, until last month, when Glenn Neasham, an independent insurance agent, was sentenced to 90 days in jail for selling just such an annuity to an 83-year-old woman who may have shown signs of dementia.

The State of California alleged that Neasham, doing business as Glenn Neasham Insurance Agency, sold a $175,000 annuity to an 83-year-old woman who supposedly lacked the mental capacity to enter into the contract. The annuity’s purchase required her to withdraw her savings from a certificate of deposit, which investigators alleged was not in her best financial interest.

"Insurance agents or brokers who steal from vulnerable seniors will not get away with their shameful tricks," said Commissioner Poizner in a 2010 press release. "CDI investigators will continue working to track down any unscrupulous agent who preys on California's seniors."

As expected, Neasham asserted in his defense that the woman seemed mentally competent when he sold her the annuity, and that he felt he had acted appropriately. It’s worth asking, however, how any insurance agent can say they “acted appropriately” when selling such a clearly inappropriate product to seniors, especially when dementia is one of the most common ailments in the elderly. (It currently affects four to five million Americans, and the numbers are growing.)

Hopefully, the conviction against Neasham will serve as a warning to other insurance agents that they can be held responsible for selling complex annuities to people who do not understand the risks and downfalls of such products.

About our law firm:

The law firm of Meyer Wilson represents individuals across the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind. Contact us toll-free at 1-866-827-6537 for more information or complete the online form on the top of this page and we will respond promptly.

Story Serves as Cautionary Tale Against Nontraded REITs

Wed, 04 Apr 2012 08:00:00 EST

This woman’s story is a cautionary tale against nontraded REITs when her investment broker pushed her into a nontraded REIT as part of her IRA.

The story of Susan Fox, a 63-year-old woman whose broker sold a second nontraded REIT to her after she expressed concerns over the first’s double-digit decline in value, should serve as a cautionary tale for all.

In Sunday’s InvestmentNews article, Fox is quoted as having said, “My recollection was that he deflected talking about Inland [the first nontraded REIT]. He was talking over my head and said that [Cornerstone, the new nontraded REIT] was a better investment with a better, reputable company, and it would pay dividends. He had a lot of paper spread out on the table. He had all the documents ready for me to sign, and I signed them.”

Just a few years after Fox purchased the second nontraded REIT, she learned the product’s value had declined 72%. Unfortunately, when she wanted to sell the investments, she learned she couldn’t – a fact she said her broker failed to mention when he sold her the products as part of her Independent Retirement Account (IRA).

Fox’s case brings to light many of the problems associated with nontraded REITs. They’re highly illiquid, often for periods of more than eight years; they carry hefty fees that erode their long-term values; and the early redemption of shares is usually very limited. Additionally, they carry limited diversification, lack clear and simple valuation processes, and have potentially significant tax consequences.

In an investor alert issued late last year, FINRA warned investors of these and other risks saying, “Non-traded REITs are rarely, if ever, suitable for short-term investors and even long-term investors must be willing to bear the risks of illiquidity.”

Unfortunately for Susan Fox and other investors like her, many brokers don’t seem to care that these risky products are unsuitable for their clients. For now, the best thing investors can do is to avoid purchasing a nontraded REIT unless they fully understand all of the associated risks. If you are considering investing or changing investment brokers, you can learn how to select the right broker for you to avoid common investment mistakes on this site.

About our law firm:

The law firm of Meyer Wilson represents individuals across the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind. Contact us toll-free at 1-866-827-6537 for more information or complete the online form on the top of this page and we will respond promptly.

Ohio Pension Plan Among Plaintiffs in Investment Fraud Case Against BP

Mon, 02 Apr 2012 08:00:00 EST

British Petroleum must face the investment fraud charges brought by investors against the company after the April 2010 Deepwater Horizon Gulf oil spill, according to a ruling by a federal judge last month. Investors say that BP made misrepresentations both before and after the spill about its spill response capabilities and its capacity to deal with a problem of this magnitude.

The investors are led by the New York and Ohio pension plans that held shares of BP. The plaintiffs allege that BP made public statements about commitment to safety while ignoring internal complaints, cutting staff, and reducing budget resources.

The February, 2012, ruling will allow certain claims to go forward, but it does not issue an opinion about whether plaintiffs will be able to recover securities fraud damages against BP.

About Our Law Firm:

The Law Firm of Meyer Wilson is the only Ohio investment fraud law firm that is exclusively dedicated to individual investor claims and class action cases. Our securities fraud attorneys have successfully represented investors throughout the nation in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors who caused them harm. All of our cases are handled on a contingency fee, and our investment fraud lawyers do not request retainers of any kind.

To schedule a free consultation with an experienced investment fraud attorney, please call us today at 614-224-6000 or toll-free at 1-866-827-6537. We also invite you to read our FREE book for more information about your rights and potential recovery: Five Signs of Investment Fraud... And What to Do if it's Happened to You.

Indiana Man Sentenced for Investment Fraud, Securities Fraud

Fri, 30 Mar 2012 08:00:00 EST

Indianapolis-Area, High-Profile Financier Keenan Hauke, CEO of SAMEX Capital, Receives 10 Years for Securities Fraud

Keenan R. Hauke, of Fishers, Indiana, was sentenced to 10 years and 1 month in prison last Friday for defrauding 67 victims out of more than $7 million. He also was ordered to serve five years of supervised release, and to pay $7,132,820.12 in restitution. The sentence comes on the heels of Hauke’s Dec. 2011 guilty plea to one count of securities fraud.

According to court documents, Hauke founded Fishers-based Samex Capital in 1999. As owner and CEO, he immediately formed a hedge fund and began to solicit investors. Within a very short period of time, he had procured millions of dollars in investments.

Starting in 2004, Hauke admitted, he began to engage in an investment scheme to defraud the fund’s investors. Rather than investing the funds as promised, he began to invest millions of client dollars into Michigan real estate. This was done without client notice or approval. When the holdings lost nearly all of their value, Hauke created and distributed fake account statements that falsely reported high rates of return. Any investors who closed their accounts were paid off with money from newer investors.

Prosecutors in the case said that Hauke also moved assets among accounts in order to avoid scrutiny. For example, after the real estate holdings lost their value, Hauke separated Samex Capital’s accounts into two groups: a “Brokerage Group” and a “Real Estate Group.” Accounts with legitimate investments were kept in the Brokerage Group, while accounts that had invested in the nearly worthless real estate holdings were moved to the Real Estate Group.

Officials were alerted to the investment fraud when a former employee became suspicious and resigned from Samex Capital in April 2011. In addition to notifying the Indiana Securities Division of his suspicions, the employee also informed a number of investors that their investments might not have been secure. The investment scheme was reported to the public shortly thereafter.

About our law firm:

The law firm of Meyer Wilson represents individuals across the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind. Contact us toll-free at 1-866-827-6537 for more information or complete the online form on the top of this page and we will respond promptly.

Ex-NBA Player and CEO C. Tate George Charged in Real Estate Ponzi Scheme

Fri, 30 Mar 2012 08:00:00 EST

Ex-NBA Player and CEO Charged in Alleged $2M Real Estate Ponzi Scheme

C. Tate George, former player for the NBA’s New Jersey Nets and CEO of purported real estate development firm The George Group, was indicted late last week on four counts of wire fraud in connection to an alleged $2 million Ponzi scheme. According to the indictment, George is accused of intentionally making false representations about his firm and about his personal finances in order to defraud potential investors.

The indictment alleged that George told potential investors, including several former professional athletes, that his company managed more than $500 million in assets, and that their investments would be used to fund the company’s purchase and development of real estate development projects.

In some cases, the indictment alleged, he told certain investors their money would be used only as “show money,” and he personally guaranteed some prospective investors that their investments would be returned, with interest. All together, he obtained more than $2 million in investments in The George Group between 2005 and 2011.

Instead of investing the funds as promised, however, George allegedly deposited the investments in both The George Group’s and his personal bank accounts. Allegedly, he then used investments from new investors to make payments to older investors. The indictment also accuses him of using some of the money for his personal purposes. If convicted, George could face up to 20 years in prison and a $250,000 fine for each count of wire fraud.

About our law firm:

The law firm of Meyer Wilson represents individuals across the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind. Contact us toll-free at 1-866-827-6537 for more information or complete the online form on the top of this page and we will respond promptly.

Crowdfunding and Online Stock Markets for Startups Opens Door for Investment Fraud

Fri, 30 Mar 2012 08:00:00 EST

“Crowdfunding” and Online Stock Markets for Start-Ups Could Spell Trouble for Investors

Congress is currently considering loosening restrictions on who can invest in companies before they go public. I caught wind of this on a recent story covered on NPR. In theory, the changes sound good; shouldn’t everyone have the right to invest in the company of his or her choice? But, like most legislative changes, there’s a downside: The proposed rules could also create 21st-century boiler rooms where dodgy deals are peddled in social media to unsophisticated investors.

Under current law, only “accredited investors” (read: individuals with net worths of at least $1 million, excluding their residences) can invest in these types of non-public start-ups. The exception is, of course, the entrepreneur him-or-herself. Entrepreneurs can invest in their own businesses, but if they want to obtain investments from friends and families, those friends and families must qualify as “accredited investors.”

If they don’t, they’re cut out of the deal. Some say these rules prohibit the average investor from making the kind of investment deals that have made many people – particularly in Silicon Valley – rich. And, these same people are now pushing Congress to relax the current rules and to allow “crowdfunding.”

Crowdfunding would allow companies to raise capital through social networks like FaceBook and Twitter, and to obtain small investments from just about anybody – regardless of the investor’s net worth or familiarity with investment strategies. Advocates say crowdfunding could “unleash a torrent of new money” for new creative ideas and projects. But, investor protection advocates, including myself, are concerned about the potential for investment fraud in these new online stock markets for start-ups. And, for good reason.

Crowdfunding could potentially open up the business of lining up investors to almost anyone with a website. This means everyday investors could have a particularly difficult time sorting out fraudulent set-ups from legitimate start-up opportunities, especially when it is so easy to design polished and trust-inspiring websites. This is particularly true in our web-savvy society, in which people are increasingly comfortable conducting financial business online. Such familiarity with online financial transactions would likely translate into decreased skepticism, a fact con artists would certainly use to their advantage.

Additionally, it’s worth asking why – when instances of investment fraud continue to rise – regulators and legislators would be considering looser restrictions in today’s market. The “accredited investor” rules are designed to protect investors who are often less familiar with complicated investment strategies and who often do not have the financial resources to handle a significant loss in the market.

While it is understandable that less wealthy investors would desire the right to invest in legitimate start-up opportunities, allowing unregulated or loosely regulated markets to flourish on the Internet would almost certainly result in increased investment fraud and lessened investor protection. In today’s market, there has to be a better solution. Let’s hope Congress agrees.

About our law firm:

The law firm of Meyer Wilson represents individuals across the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind. Contact us toll-free at 1-866-827-6537 for more information or complete the online form on the top of this page and we will respond promptly.

Glen Arm Man Indicted for $14 Million Maryland Investment Scam

Fri, 23 Mar 2012 08:00:00 EST

Patrick Belzner, of Glen Arm, Maryland, has been indicted by a federal grand jury in Baltimore on charges of conspiring to commit mail fraud related to an alleged investment scam. Belzner, who also used the name Patrick McClosky, has been accused of taking $14 million from investors in the scam.

According to the US Attorney’s Office, Belzner and an unnamed colleague convinced investors to put money into his company, which was involved in commercial real estate projects. Investors were told that their cash would go into an escrow account and that a large escrow account was needed to show “liquidity” to lenders. The pair allegedly told investors that their cash would not be used without express permission. Unfortunately, it is believed that the pair instead sent false statements to investors and used the cash in the escrow account to pay off earlier investors, personal debts, and business debts.

This is not the first time Belzner has been arrested for financial misconduct, either; Belzner was previously involved in an embezzlement case in 1999. At that time, he pleaded guilty to conspiring to embezzle at least $250,000 from a Columbia-based company.

Belzner could be ordered to 20 years in prison if convicted for his involvement in the most recent investment fraud case.

If you or your family member have sustained losses in a Maryland Ponzi scheme, investment scam, or other form of financial fraud, the Law Firm of Meyer Wilson may be able to help. We have represented investors nationwide in stockbroker mediation, arbitration, and litigation. Speak with us today to schedule a completely free case evaluation with one of our investment fraud lawyers.