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Common Investment Misconduct Claims

• Beazer Homes USA Executive to Pay Back Bonuses after Company Misconduct
  Sep 29, 2011

  The former chief financial officer of Beazer Homes USA, Inc. will return the money he made in stocks and bonuses during the time that Beazer Homes USA was allegedly committing accounting fraud. James O'Leary is expected to reimburse over $1.4 million that he received after 2006.
  
  Under the The Sarbanes-Oxley Act, some executives are required to pay back any bonus, incentive pay, and/or stock profits if they were received during a time when a company was engaged in misconduct and not in compliance with financial reporting requirements. O'Leary has not been charged with misconduct by the SEC, although he had not yet reimbursed the funds until this settlement.
  
  The alleged problems with Beazer Homes USA involved the false documents filed in 2006 and a scheme that would fraudulently inflate the company's earnings. Previously, Beazer Home USA's CEO was also required to pay back bonuses and money made from stocks. Ian McCarthy reimbursed $6.5 million at that time.
  
  The Law Firm of Meyer Wilson helps investors who have lost money due to stockbroker misconduct, investment fraud, and misrepresentation. We are stock scam attorneys who have 50 years of collective experienced representing victims through FINRA arbitration, mediation, and litigation.

• Gregory J. Buchholz Faces Sentencing for $1.37 Million in Alleged Financial Fraud
  Feb 28, 2011

  Gregory J. Buchholz of Bridgewater was scheduled to be sentenced on Monday, January 31, 2011, in federal court in Bridgeport.
  
  Buchholz, an independent financial adviser operating at Raymond James Financial Services branch in Southbury, admitted under oath in U.S. District Court to a scheme in which he liquidated his clients' securities and deposited the proceeds into his own bank account.
  
  Allegations include charges stating that the former financial adviser liquidated client annuities and mutual funds while keeping the proceeds. Prosecutors allege that he forged clients' signatures and claimed he was reinvesting their money or fabricated other falsehoods to avoid being discovered.
  
  The former Bridgewater BOF Chairman pleaded guilty in federal court last November in regards to charges for embezzlement of at least $1.37 million from his financial services firm's clients.
  
  Buchholz agreed to waive his rights to indictment and a trial in addition to paying full restitution to the victims in November. The U.S. Attorney's Office in Connecticut said that securities firm Raymond James has agreed to pay its clients' losses and has "already returned a majority of the money."
  
  The Law Firm of Meyer Wilson
  
  The law firm of Meyer Wilson represents clients who have been harmed by investment fraud. For more information, contact us by calling toll free 866-827-6537 or filling out our online form.

• Lauritsen Sentenced, Ordered to Pay Restitution in Connection with Alleged Financial Fraud in Religious Circle
  Feb 21, 2011

  A Boulder, Colorado judge passed sentencing on 50-year-old Texan, Kevin Lauritsen, today in connection with financial fraud allegations tied to a community church.
  
  Lauritsen received four years in prison for his role in what prosecutors say was a Ponzi scheme that swindled nearly $1 million from unsuspecting Boulder investors.
  
  For the sake of sentencing, Lauritsen pleaded guilty in December to charges including felony, conspiracy to commit securities fraud, and misdemeanor theft. (It is reported that prosecutors dismissed several other charges in exchange for the admission.)
  
  According to Judge Gwyneth Whalen, Lauritsen appeared sorry after he made a long, teary-eyed apology to the court and victims. Whalen also stated that she believed Lauritsen had not initially intended to commit fraud.
  
  Arrest warrant affidavits for Lauritsen indicate that he, Loren Ankarlo, and Douglas Wertzbaugher stole thousands of dollars through an investment scheme. Prosecutors state that Ankarlo allegedly approached people he knew through a local church where he served as a pastor.
  
  "It is just breaching trust at the most basic level. Our faith," purported fraud victim Mark Santon stated. Ankarlo, who pleaded guilty to alleged securities fraud last month, is scheduled for sentencing on February 11, 2011.
  
  The Law Firm of Meyer Wilson
  
  The law firm of Meyer Wilson represents clients who have been harmed by investment fraud. For more information, contact the law firm of Meyer Wilson by calling toll free 866-827-6537 or filling out our online form.

• Gatta Sentenced for Alleged Jersey Shore Ponzi Scheme
  Feb 19, 2011

  It looks like authorities may have uncovered a real Jersey Shore "Situation." Well-known humanitarian and former partner of one of the state's biggest insurance agencies, C. Gavin Gatta, Jr., has been sentenced to four years in prison connected with financial fraud accusations.
  
  The 48-year-old was a prominent resident of Ocean Township, NJ. Community members say that he was a fixture in all the local social circles, pledging thousands to Jersey Shore University Medical Center in Neptune and fundraising tirelessly on behalf of organizations like Interfaith Neighbors in Asbury Park.
  Gatta's accusers state that this magnetic and magnanimous personality was merely a mirage.
  
  Prosecutors alleged during trial that Gatta pilfered more than $20 million meant to pay client premiums for his personal use.
  
  For sentencing purposes, Gatta admitted that he used the money to buy a veritable fleet of opulent automobiles, including several Ferraris, a Porsche, a Mercedes, and an Aston Martin.
  
  Gatta made the following statement upon hearing his sentence: "I want to apologize to my loving wife and two beautiful boys for the hell I put them through because of my disgraceful conduct.''
  
  The Law Firm of Meyer Wilson
  
  The law firm of Meyer Wilson represents clients who have been harmed by investment fraud. For more information, contact the law firm of Meyer Wilson by calling toll free 866-827-6537 or filling out our online form.

• Reinholdt Found Guilty of Alleged Colorado and Arizona Ponzi
  Feb 18, 2011

  A 39-year-old Colorado native, John Reinholdt II has been found guilty of charges of a Ponzi scheme to defraud Colorado and Arizona banks, according to the Denver Business Journal.
  
  Reinholdt may face up to 24 years in prison. The charges are tied to allegations that he used at least 19 Lafayette-based businesses, including Jaguar Group LLC, Welend Associated Group, Dakota Lending, and EZ Loans, to fraudulently obtain money from banks.
  
  Prosecutors maintain that since 2006, Reinholdt has utilized his operating businesses to secure loans at interest rates between 5 and 7 percent. He then purportedly used those funds to make subprime loans with interest rates of 11.5 percent and higher.
  
  Victims allege that he then used money raised from new loans to pay back older lenders, at times using fictitious (or "straw") homebuyers.
  
  Denver District Court jury members voted to convict Reinholdt of violating the Colorado Organized Crime Control Act, as well as conspiracy to violate the Colorado Organized Crime Control Act. Jurors also convicted Reinholdt of seven counts of defrauding a secured creditor, nine counts of forgery, and 14 counts of theft-all felonies.
  
  Reinholdt's sentencing is set for March 4, 2011, and he could spend decades in jail for his alleged fraudulent and Ponzi scheme activities.
  
  The Law Firm of Meyer Wilson
  
  The law firm of Meyer Wilson represents clients who have been harmed by investment fraud. For more information, contact us by calling toll free 866-827-6537 or filling out our online form.

• Largest Alleged Ponzi Scheme Ever Prosecuted in WA Brews in Seattle
  Feb 17, 2011

  Authorities say something is brewing in Seattle-and it isn't coffee.
  
  Frederick Darren Berg is being tied to an alleged financial fraud that is being called the biggest Ponzi scheme ever prosecuted in the state of Washington.
  
  In a statement highly reminiscent of the usual Ponzi patterns, alleged victim Ron Neubauer said, "My oldest friend was getting checks every month - 10 percent, I think, and for years." Neubauer first invested his money in Berg's Meridian Group in 2006, and is a former federal prosecutor.
  
  Berg, 48, is the CEO and founder of Meridian Group, a mortgage-based business. He stands accused of defrauding investors of more than $100 million between the years of 2003 and 2010 through the Seattle-based company.
  
  Prosecutors contest that Berg spent millions of dollars intended for client investments on personal use and a lavish standard of living, including a ritzy Mercer Island mansion valued somewhere in the range of $10 million and two personal jets.
  
  Investors and authorities are left asking how the scheme could have possibly hoodwinked so many, so thoroughly, and for so very long.
  
  In interviews before his arrest last year, Berg stated, "It's really hard to identify where it crossed that line. We certainly didn't intend for that to happen."
  
  Thus far, Berg has pleaded not guilty to the charges.


  
  The Law Firm of Meyer Wilson
  
  The law firm of Meyer Wilson represents clients who have been harmed by investment fraud. For more information, contact the law firm of Meyer Wilson by calling toll free 866-827-6537 or filling out our online form.

• Maui Businessman Pleads Guilty to 20-Year Alleged Ponzi Scheme
  Jan 25, 2011

  Lloyd Y. Kimura recently pled guilty in federal court to charges that he swindled more than 50 people out of $20 million for allegedly fraudulent investments.
  
  For sentencing purposes, Kimura admitted to using his business, Maui Industrial Loan and Finance Co., to attract investments. However, money collected from newer customers was allegedly used to pay older clients, in the usual Ponzi pattern. Kimura filed for bankruptcy in February, after the money finally ran dry with liabilities totaling $23 million.
  
  "I took money from people that I knew [...] and I did not pay them back," Kimura told U.S. Magistrate Judge Barry Kurren in court.
  
  The 61-year-old businessman from Maui could face a maximum prison sentence of 135 years without parole under a plea bargain.
  
  Kimura's alleged victims came from across the country, although most of them were from Maui.
  
  "This is as long of a Ponzi scheme as I've ever seen," Assistant U.S. Attorney Ken Sorenson said. "We'll be seeking a substantial and just sentence considering the fraud conditions that occurred in this case."
  Kimura has allegedly been attracting investors for his supposedly fraudulent investments since 1986.
  
  The Law Firm of Meyer Wilson
  If you have lost money in an investment scam, then you should contact an experienced investment fraud attorney for a free case evaluation by calling toll free 866-827-6537 or filling out our online form. Our security fraud lawyers are licensed in Ohio and California, and we represent investors nationwide in securities arbitration claims.

• Investors in Alleged BBC Equities Ponzi Scam May Not Get Their Money Back
  Jan 23, 2011

  The court-appointed receiver for the Bravata companies, which are allegedly connected with a $50 million Ponzi scheme, said that it may not be possible for all claims against BBC Equities and Bravata Financial Group to be met.
  
  John Bravata was accused by the SEC of running a Ponzi scheme that took money from more than 400 investors in Michigan and Ohio. A Kalamazoo native, Bravata was co-founder and chairman of the Southfield-based companies of BBC Equities and Bravata Financial Group.
  
  Bravata denies the charges, stating that he was running a legitimate real estate investment business.
  
  Earle Erman was appointed as receiver by the U.S. District Court in Detroit. So far, Erman has only recovered about $130,000, and he’s run up fees of more than $757,000 doing so.


  
  Erman made the following statement: “Although there are certain assets to be liquidated and claims to pursue which may generate additional funds […] at this time there does not appear to be a reasonable prospect of any significant recovery for creditors and investors.”
  
  Barbara McQuade, U.S. Attorney, stated recently that the five-year statute of limitations on potential financial crimes surrounding Bravata’s alleged Ponzi scheme could be reached by spring 2011.
  
  The Law Firm of Meyer Wilson
  
  If you have lost money in an investment scam, then you should contact an experienced investment fraud attorney for a free case evaluation by calling toll free 866-827-6537 or filling out our online form. Our security fraud lawyers are licensed in Ohio and California, and we represent investors nationwide in securities arbitration claims.

• Attorney Pleads Guilty in Connection with $23 Million Real Estate Scheme
  Jan 21, 2011

  For sentencing purposes, Cheddi Goberdhan pled guilty last week before U.S. District Judge Shira A. Scheindlin in Manhattan federal court to a seven count indictment. The charges included conspiracy to commit bank and wire fraud and six counts of bank fraud. 
  
  The NY real estate attorney allegedly participated in the massive mortgage fraud scheme through a branch office of GuyAmerican Funding, located on Liberty Avenue in Jamaica, New York. The scheme allegedly defrauded banks out of $23 million in mortgage loans.
  
  Prosecutors state that the defendant supposedly made hundreds of thousands of dollars in illicit profits from the scheme. Numerous loan officers and workers at GuyAmerican Funding, a mortgage brokerage firm in Queens, New York, were also allegedly involved. Goberdhan will be the ninth defendant convicted of participating in this financial fraud scheme.
  
  Preet Bharara, Manhattan U.S. Attorney, made the following statement: “Cheddi Goberdhan carried out an elaborate subterfuge designed to steal millions of dollars in home mortgage loans. Instead of serving as the gatekeeper whom the banks relied upon to prevent fraud, he abused his position of trust to line his own pockets [...].”
  
  The Law Firm of Meyer Wilson
  
  If you have lost money in an investment scam, then you should contact an experienced investment fraud attorney for a free case evaluation by calling toll free 866-827-6537. Our security fraud lawyers are licensed in Ohio and California, and we represent investors nationwide in securities arbitration claims.
  

• New Ponzi Scheme Uncovered by Financial Fraud Enforcement Task Force
  Jan 07, 2011

  The results are in from the first round of investigations by the Financial Fraud Enforcement Task Force created in 2009. More than 300 people have been charged criminally, and 189 are facing civil penalties as a result.
  
  The cases represent the largest nationwide fraud investigation in the country's history, collectively speaking, said FBI Executive Assistant Director Shawn Henry.
  
  More than ten billion dollars in losses were represented in Ponzi schemes, foreign currency trading scams, and other financial fraud to an estimated 142,947 people, according to a Department of Justice fact sheet.
  
  Prosecutors state that the scams frequently involved the perpetrators preying on friends, family, and members of their churches who trusted them. They then allegedly used the money obtained to support lavish lifestyles. Supposedly, the operator of one $880 million Ponzi scheme regularly bought floor seats for NBA games.
  
  The 189 defendants in these cases include a Ponzi scheme that prosecutors say was led by Nevin Shapiro of Miami Beach, Florida. The former owner of Capitol Investments USA told investors that they were buying into his wholesale grocery distribution business. In reality, he was allegedly using the money to pay earlier investors, settle illegal gambling debts, and make payments on his yacht. Prosecutors state that at least 75 investors lost $89 million in the scheme.
  
  Financial Fraud
  If you or a family member has fallen victim to financial fraud, it is imperative that you speak with an experienced investment fraud lawyer about your case right away. While on our website, order your FREE copy of securities fraud attorney David P. Meyer’s book, Five Signs of Investment Fraud and What to Do If It’s Happened to You.
  

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