Meyer Wilson Investment Attorneys Fight for You
Provident Royalties, based in Dallas, TX, has filed a petition for reorganization
under Chapter 11. In 2009, the SEC obtained a temporary restraining order
and an asset freeze alleging that from 2006 – 2009, Provident made
a series of fraudulent offerings of preferred stock and limited partnership
interests. The alleged fraud and Ponzi scheme sales were made to 7,500+
The four men who were responsible for the
Ponzi scheme – Brendan Coughlin, Henry Harrison, Paul Melbye, and W. Mark Miller
– were recently sentenced for their crimes, which resulted in over
$485 million in losses to thousands of investors. Their fraud was built
around oil and gas projects that promised investors over 18% in returns
every year. Each man pled guilty, and are serving sentences ranging from
six months to nearly two years. The men were forced to pay $2.3 million
in restitution, a far cry from the nearly
half a billion that these men stole from their clients.
Thankfully, the U.S. Bankruptcy Court in Texas established the Provident
Royalties Liquidating Trust to allow investors to receive their lost financial
assets back, but this may not solve the issue.
Investors Have Rights to Claims Against Provident Royalties
Because Provident Royalties was licensed by the Financial Industry Regulatory
Authority (FINRA) while the fraudulent behavior was going on, Provident
Royalties was legally obligated to monitor their brokers to ensure that
they were acting ethically on behalf of their clients. Investors who suffered
losses have the legal right to claims against Provident Royalties because
the firm, per FINRA regulations, is legally responsible for the fraudulent
actions of their brokers. FINRA laws form the basis for the rights of
investors to recover compensation from brokerage firms.
Discuss Your Claim with Our Securities Fraud Lawyers
While FINRA regulations are intended to protect investors, they do not
pursue claims for the sake of compensating victims of fraud. FINRA is
essentially a police force for the financial industry, so their main concern
is punishing the guilty, not restoring victims. That’s where Meyer
Wilson can step in.
We make sure that your voice is not lost in the middle of the criminal
and disciplinary process, fighting every step of the way to ensure that you receive what is yours
by right. FINRA regulations dictate that investment firms are legally
obligated to pay back damages caused by fraudulent or negligent brokers.
Let us fight for your rights against firms like Provident Royalties.
If you believe you have wrongly lost your investment due to the negligence
or fraud of a broker, contact our firm for a
free case evaluation. We’ll help you fight back.