Ohio Investor Claims Blog

Receiver Appointed in Ohio Securities Fraud Case

Wed, 22 Feb 2012 08:00:00 EST

A receiver, James Swaim, has been appointed to recover Wayne T. Essex’s business assets for the purposes of distribution, according to a Jan. 30 Ohio Department of Commerce Information Release.

The action is a step forward in the securities fraud case brought against Essex and his companies – Essex and Associates, Inc., Essex HR & Associates, Inc., and HR Reconciliation, LLC –in Dec. 2011. A temporary restraining order issued by Montgomery County Common Pleas Court Judge Mary Wiseman in Dec. barred them from selling or offering securities, as well as destroying evidence of their allegedly fraudulent activities.

The order was issued in response to a Complaint filed last year by the Ohio Division of Securities. The Complaint accused Essex of committing securities fraud, selling securities without a license, and selling $1.1 million worth of unregistered securities to twenty investors from July 6, 2010 to Nov. 23, 2011. (For more information about the case, please see our Jan. 2 blog post.)

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 actions. We have successfully represented investors all throughout Ohio in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms and financial advisors. All of our cases are handled on a contingency fee and we do not request retainers of any kind.

To schedule a free consultation with an experienced Ohio 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.

Ohio Investors to Recover Money in 725 Million Dollar AIG Settlement

Wed, 22 Feb 2012 08:00:00 EST

U.S. District Court Judge Deborah A. Batts approved a $725 million securities class action settlement with American International Group, Inc (AIG) on Friday that will enable three Ohio pension funds and innumerable Ohio investors to recover a portion of their lost funds.

The three Ohio pension funds – Ohio Public Employees Retirement System, State Teachers Retirement System of Ohio, and Ohio Police and Fire Pension Fund – led the securities class action lawsuit, which accused AIG of accounting fraud, collusion, and stock price manipulation. The pension funds claimed they lost a combined total of $95.8 million after AIG admitted to an accounting fraud in 2005. The case’s final settlement was approved in the Southern District of New York.

"Ohioans and Ohio retirees' retirement accounts took a hit when AIG was accused of widespread misconduct. I'm glad these hard-working citizens, including Ohio's first responders and teachers, will finally get some financial recovery," said Ohio Attorney General DeWine.　

It is still unclear exactly how much any one investor will receive, but the total settlement is one of the largest securities class action settlements in U.S. history. If there is no appeal, eligible shareholders may begin to see results of the settlement after about six months, according to the Ohio Attorney General’s office.

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 actions. We have successfully represented investors all throughout Ohio in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms and financial advisors. All of our cases are handled on a contingency fee and we do not request retainers of any kind.

To schedule a free consultation with an experienced Ohio 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.

Columbus Investment Fraud Lawyer Looks at Case with New OH Defendants

Mon, 20 Feb 2012 08:00:00 EST

Earlier this month, Industrial Enterprises of America named thirty additional defendants in a lawsuit that claims the defendants conspired to steal money from the company and the company’s investors from 2004 – 2009.

According to Industrial Enterprises, the company lost between $90 million and $150 million in the illegal issuance of stock and that the company’s outside investors lost approximately $450 million.

James Margulies, of Pepper Pike, has already been convicted in a New York court and is currently serving a sentence. Industrial Enterprises has now named other Ohio defendants, including Jeffrey Levinson (a former law partner of Mr. Margulies), real estate developer Peter Vanucci and his company River Valley Inc., Alan Berger and Mitchell Seifert (CPAs with Singer, Berger, Press & Co. in Beachwood), and Steven Berger of Beachwood (a former employee of Mr. Margulies). Reports indicate that none of these recently named defendants agree that they are responsible for any wrongdoing.

About our law firm:

The only Ohio law firm that is exclusively dedicated to individual investor claims and class actions is the Law Firm of Meyer Wilson. Our Columbus investment fraud attorneys have successfully represented investors all throughout Ohio 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 Columbus 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 our Ohio investment fraud lawyers 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.

Possible Ponzi Scheme Warning Signs Present Before Mazella Trial

Mon, 13 Feb 2012 08:00:00 EST

Last month, the trial of Joseph Mazella began in federal court. The allegations against Mr. Mazella included securities fraud, wire fraud, and money laundering. He has been accused of running a $12 million Ponzi scheme that preyed on elderly victims, some of whom he befriended.

Potential Ponzi scheme warning signs may have been evident before trial in this case. According to Mr. Mazella’s indictment, he promised investors an annual return of 12%. Additionally, Forbes is reporting that Mr. Mazella had numerous judgments and liens against him and that he was not registered with the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC), or the National Futures Association (NFA).

Dozens of victims testified against Mr. Mazella at trial.

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 lawsuits. Our Cleveland investment fraud lawyers have successfully represented investors all throughout Ohio in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors that have caused them harm.

To schedule a free consultation with an experienced Cleveland investment fraud attorney, please call us today at 614-224-6000 or toll-free at 1-866-827-6537. All our cases are handled on a contingency fee, and, when you contact a Cleveland investment fraud attorney, you will not be asked for a retainer of any kind.

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

Man Sentenced for Multimillion Dollar Investment Fraud Scam

Sat, 11 Feb 2012 08:00:00 EST

Last March, Algird M. Norkus pleaded guilty to mail fraud charges and admitted that he provided false information to investors. Specifically, Mr. Norkus reportedly admitted that he told investors that his company Financial Update would guarantee dividends and provided false IRS forms showing interest to them.

Federal prosecutors alleged that that information was false and that Mr. Norkus took money from newer investors to pay older investors dividends in a Ponzi-like scheme. Additionally, prosecutors accused Mr. Norkus of using some of the money for his own benefit.

Last month, Mr. Norkus was sentenced for these alleged crimes. Specifically, he was sentenced to 63 months in federal prison and ordered to pay more than four and a half million dollars in restitution.

About our law firm:

The only Ohio law firm that is exclusively dedicated to individual investor claims and class-action cases is the Law Firm of Meyer Wilson. Our Columbus investment fraud attorneys have successfully represented investors all throughout Ohio in securities arbitration, mediation, and litigation claims against stockbrokers, brokerage firms, and financial advisors.

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

We also welcome you to read our 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. The book can be found, free of charge, on our website.

Securities Fraud and President Obama's 2012 State of the Union Speech

Sat, 11 Feb 2012 08:00:00 EST

It is the month after the State of the Union. Yet, it is a speech that Cincinnati stockbroker fraud lawyers and others are still talking about. Among the many ideas raised by President Obama was one that would strengthen securities fraud laws.

To accomplish this, President Obama is suggesting:

Increased authority for the Securities and Exchange Commission (SEC) to impose consequences on firms that repeatedly violate antifraud laws
The Attorney General’s establishment of a special financial crimes unit charged with prosecuting big financial fraud cases

Will increased policing help protect individual investors? Can these measures pass Congress? Will the penalties imposed by the government act as deterrent? Our Ohio stockbroker fraud attorneys will continue to monitor any proposed legislation to answer these questions.

About our law firm:

The Ohio investment fraud law firm of Meyer Wilson is the only law firm in the state that is exclusively dedicated to individual investor claims and class action cases. Our experienced Ohio stockbroker fraud attorneys have successfully represented investors throughout Ohio in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors who have caused them harm.

All of our cases are handled on a contingency fee, and a Cincinnati stockbroker fraud attorney at our law firm will not request retainers of any kind. To schedule a free consultation with an experienced Cincinnati stockbroker 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.

Brokerage Firm Settles Inadequate Supervision of Stockbroker Claim

Fri, 10 Feb 2012 08:00:00 EST

St. Louis-based investment brokerage firm Stifel Nicolaus & Co has reached a settlement with the state of Missouri. According to the terms of the settlement, Stifel Nicolaus will pay $1.1 million on charges that the firm inadequately supervised a stockbroker who allegedly conducted a pyramid scheme to defraud investors.

Approximately half of the settlement will go to the investors hurt in Missouri and three other states. The majority of the rest of the settlement will go to the Missouri Investor Education and Protection Fund, with a relatively small portion going to the Missouri Securities Division to cover its investigation costs.

The stockbroker who allegedly conducted the pyramid scheme was sentenced in February 2010 to 37 months in prison.

About Our 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 actions. Our Columbus investment fraud lawyers have successfully represented investors throughout the state in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors whose negligent or deliberate illegal actions caused them harm.

To schedule a free consultation with an experienced Ohio 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 Five Signs of Investment Fraud... And What to Do if it's Happened to You to learn more about your rights and potential recovery.

Woman Sentenced for Role in Multimillion Dollar Ponzi Scheme

Mon, 06 Feb 2012 08:00:00 EST

Elizabeth Baldwin, of Middletown, Rhode Island, was sentenced for her alleged role in a multimillion Ponzi scheme last month. Shortly before the trial was scheduled to begin, Elizabeth, also known as Liza, reached a plea agreement with the government in which she agreed to serve eight years in state prison and pay almost eight million dollars in restitution. The judge originally sentenced her to 30 years in prison but suspended 22 years of her sentence.

The original charges against Ms. Baldwin included obtaining money under false premises, computer fraud, embezzlement and passing a bad check. Ms. Baldwin has apologized for any pain that she caused.

About our law firm:

The only Ohio law firm that is exclusively dedicated to individual investor claims and class actions is the Law Firm of Meyer Wilson. Our Ohio investment fraud attorneys have successfully represented investors all throughout the state in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors who caused them financial harm because of wrongdoing, fraud, negligence, or other types of investment fraud.

At The Law Firm of Meyer Wilson, we handle all of our cases on a contingency fee, and our Columbus securities fraud attorneys do not request retainers of any kind. To schedule a free consultation with an experienced Ohio securities 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.

Alleged $7 Billion, 7,000-Victim Investment Fraud Trial Begins

Mon, 06 Feb 2012 08:00:00 EST

Late last month, the criminal trial of R. Allen Stanford began in Houston. Mr. Stanford is accused of leading a $7 billion investment fraud. He has pleaded not guilty to the 14 criminal counts against him.

Federal prosecutors accuse Mr. Stanford of lying to and stealing from investors over two decades so that he could lead the life of a billionaire. The defense intends to argue that Mr. Stanford ran a legitimate business and not a Ponzi scheme.

The government estimates that about 7,000 investors lost money in Mr. Stanford’s alleged Ponzi scheme. Currently, the Securities Investor Protection Corp. (SIPC) is claiming that the alleged victims of Mr. Stanford do not fall within its legal purview. The Securities and Exchange Commission (SEC) disagrees and is requesting that a federal court order the SIPC to get involved.

The criminal case is expected to last about six weeks. The civil case brought by the SEC has not yet been decided.

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 lawsuits. Our Columbus stockbroker fraud lawyers have successfully represented investors around the state in securities arbitration, mediation, and litigation claims against stockbrokers, brokerage firms, and financial advisors.

To schedule a free consultation with an experienced Columbus stockbroker 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 our Columbus stockbroker fraud attorneys 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.

More Delays in $20M Ohio Ponzi Scheme Case

Mon, 06 Feb 2012 08:00:00 EST

Federal prosecutors have been trying to get Ponzi schemer Kevin Harris sentenced for more than a year. First, Harris’ attorney asked to reschedule the hearing. Then, in March 2011, the presiding judge in the case decided officials needed more time to review the case’s more than 300 victim-impact statements. Now, Harris’ sentencing hearing has again been rescheduled – this time for March 1, 2012.

In early October 2010, Harris was charged with running a $20 million Ponzi scheme that defrauded hundreds of investors in the Ohio area. As part-owner of the Warren-based companies Complete Developments LLC (CDL) and Investments International Inc. (I-3), Harris solicited investments in foreign currency exchange markets and other investments. He told potential investors that at least 80 percent of their principal investments would be protected from loss, and that they would see returns of between 7 and 12 percent. He also lied to potential investors about his financial experience, background, and skills. (For more information about the case, read our March 2011 blog post.)

Harris pled guilty to conspiracy, wire fraud, and money laundering on Nov. 3, 2010. Federal Prosecutor David Toepfer has said he plans to recommend a seven-year sentence for Harris and restitution. The amount of restitution that Harris will have to pay has not yet been decided.

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 actions. We have successfully represented investors all throughout Ohio in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms and financial advisors. All of our cases are handled on a contingency fee and we do not request retainers of any kind.

To schedule a free consultation with an experienced Ohio 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 the SEC Wants You to Know About Social Media Investment Fraud

Thu, 02 Feb 2012 08:00:00 EST

The US Securities and Exchange Commission (SEC) issued a warning to US investors to be wary of investment schemes advertised via social media websites. The warning follows the SEC filing charges against Anthony Fields for allegedly offering more than $500 billion in phony securities via the social media site LinkedIn.
The SEC reports that no one purchased the investments offered by Mr. Fields, but that several people made inquiries.
According to the SEC, this is not the only case of suspected social media investment fraud that has been brought to its attention. Thus, investors are urged to be cautious, ask questions of those who hold themselves out as brokers or advisors, and double check the qualifications of the broker and the investment before handing over any money.
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 lawsuits. Our Columbus investment fraud lawyers have successfully represented investors all throughout the state in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors who have caused them harm.
To schedule a free consultation with an experienced Columbus 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.
For more information, please read our FREE book Five Signs of Investment Fraud... And What to Do if it's Happened to You, which is available on our website.

Receiver Appointed in Ohio Securities Fraud Case

Wed, 01 Feb 2012 08:00:00 EST

A receiver has been appointed to recover Wayne T. Essex’s business assets for the purposes of distribution, according to a Jan. 30 Ohio Department of Commerce Information Release.

The action is a step forward in the securities fraud case brought against Essex and his companies – Essex and Associates, Inc., Essex HR & Associates, Inc., and HR Reconciliation, LLC –in Dec. 2011. A temporary restraining order issued by Montgomery County Common Pleas Court Judge Mary Wiseman in Dec. barred them from selling or offering securities, as well as destroying evidence of their allegedly fraudulent activities
.
The order was issued in response to a Complaint filed last year by the Ohio Division of Securities. The Complaint accused Essex of committing securities fraud, selling securities without a license, and selling $1.1 million worth of unregistered securities to twenty investors from July 6, 2010 to Nov. 23, 2011. (For more information about the case, please see our Jan. 2 blog post.)

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 actions. We have successfully represented investors all throughout Ohio in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms and financial advisors. All of our cases are handled on a contingency fee and we do not request retainers of any kind.

To schedule a free consultation with an experienced Ohio 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.

Did Prominent Real Estate Investor Run an Affinity Fraud Ponzi Scheme?

Tue, 31 Jan 2012 08:00:00 EST

For almost three decades, Gaston Cantens was president of Royal West Properties and a prominent member of his community. However, when the Florida real estate market began to fall, Mr. Cantens allegedly lied to his investors about the financial health of his company and their investments.
Specifically, it is alleged that Mr. Cantens began to pay older investors with money from newer investors in a classic Ponzi scheme. Approximately $47 million is said to be outstanding.
Some of the investors who claim to be harmed by this alleged fraud include Belen Jesuit School, elderly individuals, and high-profile people and institutions in the South Florida area. The SEC has called Cantens’ alleged scheme a classic affinity fraud, since he allegedly preyed on his own connections in the community.
Mr. Cantens has pleaded guilty to one count of conspiracy to commit wire fraud and faces five years in prison, 3 years of probation, and approximately $94 million in damages.
About our law firm:
The Ohio law firm of Meyer Wilson is the only firm in the state of Ohio that is exclusively dedicated to individual investor claims and class-action lawsuits. Our Columbus investment fraud lawyers have successfully represented investors throughout Ohio in securities arbitration, mediation, and litigation claims.
All of our cases are handled on a contingency fee, and we do not request retainers of any kind. To schedule a free consultation with an experienced Cleveland stockbroker 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 book Five Signs of Investment Fraud... And What to Do if it's Happened to You. The book is available free of charge on our website.

48-Year-Old Father Sentenced to 10 Years for Alleged Ponzi Scheme

Mon, 30 Jan 2012 08:00:00 EST

Earlier this month, 48-year-old Travis Wright was sentenced to 10 years in federal prison for his part in an alleged multimillion dollar Ponzi scheme. Additionally, Mr. Wright was ordered to repay $43 million still owed to investors.
According to the government, Mr. Wright promised investors a 44% return on their investments. However, he allegedly started losing money almost immediately and was using money from newer investors to pay older investors. Additionally, he was accused of taking about $15 million for his own use. That money was allegedly used to purchase and renovate an extravagant home and to take African safaris.
Mr. Wright’s oldest son spoke on his father’s behalf at his sentencing and pleaded for leniency, claiming that Mr. Wright was a good father and a Boy Scout leader. Mr. Wright is currently scheduled to report to prison on March 5^th.
About our law firm:
The Law Firm of Meyer Wilson is the only Ohio law firm that is exclusively dedicated to investor lawsuits. Our experienced Cleveland stockbroker fraud lawyers have successfully represented investors throughout the state in securities arbitration, mediation, and litigation claims. All of our cases are handled on a contingency-fee basis, and we do not request retainers of any kind.

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

SEC Files Securities Fraud Suit Against Bank and Chief Officer

Sat, 28 Jan 2012 08:00:00 EST

BankAtlantic and chief executive Alan Levan were charged with defrauding investors in a civil lawsuit filed by the US Securities and Exchange Commission (SEC) last month. The lawsuit, filed on January 18th, accuses BankAtlantic and Mr. Levan of knowing that many of their real estate loans were in trouble by March 2007 and of taking steps to minimize the reports of problems to investors until October 2007.

Specifically, the SEC has accused BankAtlantic and Mr. Levan of securities fraud and accounting fraud. The SEC is seeking financial penalties from both defendants and is seeking to ban Mr. Levan from serving as an officer or director of a public company in the future.

BankAtlantic and Mr. Levan deny the charges against them.

Need a Columbus securities fraud attorney?

The Law Firm of Meyer Wilson is the only law practice that is exclusively dedicated to individual investor claims and class actions in the state of Ohio. Our Columbus securities fraud lawyers have successfully represented investors all throughout the state 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 Columbus securities 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.

Our Ohio investment fraud lawyers 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.

Broker Accused of Taking Millions from Clients in Investment Fraud

Mon, 16 Jan 2012 08:00:00 EST

Late last month, federal prosecutors accused an Illinois man of wire fraud in relation to financial scams that took about $4 million from investors. These investment scams are thought to be a Ponzi scheme. According to the government, Steven Salutric took about $4 million of client money without permission by forging their signatures on withdrawal documents. Mr. Salutric allegedly took money from some client accounts and put it into other clients’ accounts to make it seem like the clients were making money.
The government says that Mr. Salutric used the money he withdrew to invest in companies and businesses that he had personal ties to or invested in personally. Those businesses included restaurants, a movie production business, and car dealerships.
If convicted, Mr. Salutric faces up to 20 years in prison and a quarter million dollar fine.
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 actions. If you have been the victim of investment fraud in Ohio, we invite you to read our FREE book, Five Signs of Investment Fraud... And What to Do if it's Happened to You, to learn about your rights and potential recovery.
Our investment fraud lawyers have successfully represented investors throughout Ohio in securities arbitration, mediation, and litigation claims against stockbrokers, brokerage firms, and financial advisors.
All of our cases are handled on a contingency fee, and we do not request retainers of any kind. To schedule a free consultation with an experienced Ohio investment fraud attorney, please call us today at 614-224-6000 or toll-free at 1-866-827-6537.

Ohio Broker Accused of Million Dollar Investment Fraud

Fri, 13 Jan 2012 08:00:00 EST

Last month, the Ohio Department of Commerce filed a restraining order against local investment broker Wayne Essex and three of his Centerville, Ohio businesses, including Essex HR. The restraining order alleges that Mr. Essex defrauded his clients out of more than $1 million. Specifically, the State accused Mr. Essex of selling securities without a license, selling unregistered securities, and investment fraud.
According to the State, about 20 clients were harmed by Mr. Essex, who allegedly used the money entrusted to him by his clients on out-of-state trips instead of on investments.
A preliminary injunction hearing is scheduled this month.
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 actions. We have successfully represented investors throughout the state of Ohio in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors who have caused them harm.
To schedule a free consultation with an experienced Ohio investment fraud attorney, please call our investment fraud 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 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.

Federal Court in Ohio Issues Ruling in Investment Fraud Case

Tue, 10 Jan 2012 08:00:00 EST

In November 2011, the US District Court for the Northern District of Ohio entered final judgments against Steven R. Long and Stanley M. Paulic in an action brought against the men by the Securities and Exchange Commission (SEC).
The SEC’s action alleged that Mr. Long and Mr. Paulic founded Integrity Financial AZ, LLC (IFAZ) and, with the help of others, raised more than $8 million through the fraudulent unregistered offering of promissory notes, which they claimed were secured by real estate in Arizona.
The District Court granted the SEC’s motion for summary judgment in the case and found that both men knowingly made misrepresentations of material facts to investors. Mr. Long was found liable for $1,481,736, plus prejudgment interest in the amount of $97,723.32 and a civil penalty in the amount of $1,465,306. Mr. Paulic was found liable for disgorgement in the amount of $586,225, prejudgment interest in the amount of $38,662.65, and a civil penalty in the amount of $586,225. Additionally, IFAZ was found liable for disgorgement in the amount of $5,598,717, prejudgment interest in the amount of $429,403.44, and a civil penalty in the amount of $650,000.
About our law firm:
The Law Firm of Meyer Wilson is the only law firm in Ohio that is exclusively dedicated to investor claims and lawsuits. We have successfully represented investors all throughout Ohio in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors.

To schedule a free consultation with an experienced Columbus 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.

Feds Charge Two Men in Alleged Multimillion Dollar Ponzi Scheme

Mon, 09 Jan 2012 08:00:00 EST

An alleged pyramid of Ponzi schemes resulted in the indictments of two men last month. Robert L. Holloway and Robert J. Andres both face federal indictments for their alleged roles in the investment scam.
Mr. Holloway’s indictment accuses him of directing a fraudulent commodities trading venture that took in at least $25 million. The indictment indicates that he lost more than $10 million of investors’ money, used money from newer investors to pay off older investors in a classic Ponzi scheme, and misappropriated more than $1 million of investor money for his own use.
Mr. Andres’ indictment accused him of raising about $71 million for a Ponzi scheme related to his Winsome Investment Trust and misappropriating more than $2 million of investor money for personal use.
The court appointed receiver estimates that there are about 425 investors affected by this alleged scheme in the US and Canada.
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 actions. Our Columbus investment fraud lawyers have successfully represented investors throughout the state in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors who caused them harm.
To schedule a free consultation with an experienced Columbus 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.
Our lawyers 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.

Ohio Division of Securities Issues Summary of Securities Fraud Orders

Mon, 09 Jan 2012 08:00:00 EST

The Ohio Department of Commerce Division of Securities released a summary of the Orders issued by the Division last month. The Division issued one Cease and Desist Order, one Consent Agreement, two Administrative Consent Orders, and one Notice of Opportunity for Hearing in a total of four alleged securities fraud and/or broker misconduct cases.

A Cease and Desist Order finally was filed against Kevin Paul O’Brien and his companies, O’Brien Private Wealth Management and O’Brien PWM, LLC, in November. Last summer, the Ohio Division of Securities notified O’Brien of its intent to file a Cease and Desist Order related to O’Brien’s alleged unlicensed sale of securities. (For more information about O’Brien’s alleged activities, read our June 28 blog post here.) In August, O’Brien challenged the state’s allegations that he illegally acted as an investment adviser and committed securities fraud. This November, O’Brien finally consented to the Division’s findings, which included the assertion that neither O’Brien nor O’Brien PWM, LLC was licensed to act as an investment adviser, representative, dealer, or salesperson for compensation in the State of Ohio. In the Consent Agreement, O’Brien also agreed to refund the investment adviser fees received from two Ohio investors, and to extend an Offer of Rescission of investment adviser fees paid by all clients from Sept. 2008 to present.

The Ohio Division of Securities also participated in a collaborative investigation into Goldman Sachs’ marketing and sale of auction rate securities. The investigation found that Goldman Sachs, through its sales force, made misrepresentations to investors about the liquidity and safety of auction rate securities. These misrepresentations led to significant losses for investors in Feb. of 2008 when the auction rate securities market collapsed. For the misrepresentations and its failure to supervise the firm’s salespeople, Goldman Sachs was ordered to pay a penalty of $410,062.50. The Division also ordered the firm to repurchase illiquid auction rate securities from eligible investors. As part of the Consent Agreement, Goldman Sachs consented to the entry of the Division’s findings and waived its right to a hearing or appeal.

A second Administrative Consent Order connected to the auction rate securities market also was filed in November, this time in the matter of Wells Fargo Investments, LLC. According to the Order, Wells Fargo Investments failed to supervise some of its sales agents whom marketed auction rate securities to unsuitable investors. The Ohio Division of Securities attributed the marketing errors to the sales agents’ lack of education on the specifics of the auction rate securities market. According to the Division, Wells Fargo Investments should have provided its agents with adequate education; it also should have established specific written supervisory procedures to monitor the auction rate securities transactions. For its failure to supervise, Wells Fargo Investments was ordered to pay a penalty of $3,915.55. The firm also agreed to repurchase certain illiquid auction rate securities from eligible investors. As part of the Consent Agreement, Wells Fargo Investments consented to the entry of the Division’s findings and waived its right to a hearing or appeal.

The Ohio Division of Securities also issued a Notice of Opportunity for Hearing in the matter of Du Pasquier & Co., Inc. In the Notice, the Division informed Du Pasquier & Co. that a Cease and Desist Order alleging unlicensed sales of securities would be issued against the company in the next thirty days unless the company requested a hearing. (A Cease and Desist Order was issued on the Dec. 7. A Consent Agreement was entered the same day.)

Additional information about these cases is available on the Division’s website.

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 actions. We have successfully represented investors all throughout Ohio in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms and financial advisors. All of our cases are handled on a contingency fee and we do not request retainers of any kind.

Ohio-Based NRP Financial Accused of Ignoring $194M Minnesota Ponzi Scheme

Mon, 09 Jan 2012 08:00:00 EST

When Trevor Cook’s massive Ponzi scheme collapsed in July 2009, defrauded investors lost more than $150 million. Cook admitted to the scheme in 2010 and was sentenced to 25 years in federal prison. In 2011, several of Cook’s alleged colleagues, including Christian radio host Patrick Kiley and Jason Bo-Alan Beckman, were named in various civil and criminal complaints across the country.

Now, a receiver in charge of finding and cataloging Cook’s assets has filed a Minnesota lawsuit against Ohio-based broker-dealer NRP Financial. The lawsuit accuses NRP Financial of ignoring and assisting the proliferation of Cook’s scheme by failing to supervise former registered representative Jason Beckman.

The SEC brought charges against Beckman in March of 2011. In its Complaint, the Commission alleged that Beckman raised $47.3 million from 143 investors in a fraudulent, unregistered investment offering. According to the recent lawsuit filed by Cook’s receiver, that $47.3 million made Beckman a major contributor to Cook’s scheme.

The lawsuit alleges that Beckman worked with NRP Financial from November 2005 through February 2008 as owner and operator of the now-defunct Oxford Private Client Group (PCG). NRP Financial is located in Bryan, Ohio. PCG functioned as NRP's branch office in Minneapolis.

The lawsuit further alleges that NRP Financial had plenty of opportunities to uncover Beckman’s alleged participation in the fraud, and that the firm went so far as to create a "flimsy and obviously whitewashed paper trail to conjure the illusion of supervision and oversight where none actually existed." (Quoted from a Star Tribune article. For more information, read the full article here.) The lawsuit seeks monetary damages from NRP Financial.

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Potential Penny Stock Fraud Case Uncovered by Government

Fri, 06 Jan 2012 08:00:00 EST

Last month, the federal government suspended trading at 7 firms and filed criminal charges in an alleged penny stock scheme. The government accused those involved of using fraud to encourage investments in the stock of small companies that are not traded on major exchanges.

The 7 firms included in this action were:

1^st Global Financial Inc. of Nevada
Augrid Global Holdings Corp. of Texas
Comcam International Inc. of Pennsylvania
Microholdings US Inc. of Washington
Outfront Companies of Florida
Symbollon Corp. of Massachusetts
ZipGlobal Holdings Inc. of Massachusetts

The criminal cases named 13 defendants in 10 different states and charged many of the defendants with mail fraud, wire fraud, and conspiracy to commit securities fraud. At least one of the defendants in this case is from Ohio.

About our firm:

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

All of our cases are handled on a contingency fee, and our lawyers will not request retainers of any kind. To schedule a free consultation with an experienced Cleveland investment fraud attorney, please call the Law Firm of Meyer Wilson 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.

Man Sentenced for 2nd Investment Fraud Before 1st Sentence Finished

Mon, 02 Jan 2012 08:00:00 EST

In 2008, Jon Hankins was sentenced to three years and ordered to pay more than $8 million in restitution for an alleged Ponzi scheme. At his sentencing, Mr. Hankins reportedly took responsibility for his actions.

In 2009, Mr. Hankins was released to home confinement. Now, the government is accusing Mr. Hankins of starting another investment scam within days of being released to his home. This time, Mr. Hankins was accused of soliciting for investments in a fictional company that he called Bankers Trust & Annuity. The government alleges that Mr. Hankins incorrectly claimed that the company had $120 million in asset investments and average returns of more than 35%.

In November 2011, Mr. Hankins was sentenced to 40 months in prison for his second alleged scam. This sentence came before the 2008 sentence was fully served.

About our law firm:

The only Ohio law firm that is exclusively dedicated to individual investor claims and class action lawsuits is the Law Firm of Meyer Wilson. Our experienced Cleveland investment fraud lawyers have successfully represented investors throughout Ohio in securities arbitration, mediation, and litigation claims against stockbrokers, brokerage firms, and financial advisors.

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

If you have been the victim of an Ohio investment scam or have questions about your rights and potential recovery if you should become the victim of a scam, please read our FREE book Five Signs of Investment Fraud... And What to Do if it's Happened to You.

$3.7 Billion Ponzi Scheme Conviction Affirmed by Federal Appeals Court

Mon, 02 Jan 2012 08:00:00 EST

In 2009, a United States District Court found Tom Petters guilty of conducting a $3.7 billion Ponzi scheme. Mr. Petters was sentenced to 50 years in prison. He appealed that sentence.
Last month, the Eighth Circuit US Court of Appeals affirmed Mr. Petters’ conviction and sentence and found that Mr. Petters had received a fair trial. In his appeal, Mr. Petters’ lawyers argued that he had been denied a fair trial because the defense was not able to fully question a prosecution witness in the witness protection program. The 8^th Circuit disagreed and found that Mr. Petters was provided with a fair trial, and the judge did not err in the ways suggested by the defense.
Accordingly, Mr. Petters’ 50 year sentence after being convicted on 20 counts (including wire fraud, mail fraud, money laundering, and conspiracy) stands and was affirmed.
About our law firm:
The Law Firm of Meyer Wilson is the only Ohio law firm that is solely dedicated to individual investor claims and class-action lawsuits. Our Cleveland investment fraud attorneys have successfully represented Ohio investors in securities arbitration, mediation, and litigation claims against the stockbrokers, brokerage firms, and financial advisors who harmed them.
We invite you to read the FREE book authored by our Cleveland investment fraud lawyers: Five Signs of Investment Fraud... And What to Do if it's Happened to You. Call an experienced Ohio investment fraud attorney at 614-224-6000 or toll-free at 1-866-827 for a free consultation. All of our cases are handled on a contingency fee, and we do not request retainers of any kind.

Ohioans Urged to Guard Against Investment Fraud in 2012

Mon, 02 Jan 2012 08:00:00 EST

The New Year is here, and with it comes new resolutions to get waistlines, pocketbooks, and lifestyles in line with next year’s goals. It’s also a good time to revamp and/or reconsider investment strategies, says the Ohio Department of Commerce.

Investors can assess how their investment strategy fits in with their current financial situations and their future goals by considering the following questions:

Why am I saving and investing?
What are my short-term and long-term financial goals?
What level of risk am I comfortable with?
Does my current portfolio match my comfortable level of risk? Will it get me to my goals? If not, which savings or investment products would?

Investors may find that their current portfolios or strategies don’t fit their needs. If that’s the case, investors should make sure they thoroughly investigate any savings or investing opportunity they consider. They also should be on the lookout for investment schemes that promise unrealistic returns.

"No matter how tempting it might be, Ohioans should resist pursuing risky investing bets to overcome any losses they may have suffered during the financial crisis," said David Goodman, Director of the Ohio Department of Commerce in a Dept. press release.　 "It is important to be aware of con artists who prey on peoples’ fears with false promises of ‘guaranteed’ returns at no risk."

In particular, the Ohio Department of Commerce warns Ohioans to be on guard against the top five types of investment fraud: Ponzi schemes; unlicensed and unregistered sales; affinity fraud; promissory note schemes; and distressed real estate schemes. All of which were prevalent in 2011, and many of which lured investors with false promises of high returns with little risk.

Director Goodman encourages Ohio investors to protect themselves from investment fraud by:

Verifying that the person promoting the investing opportunity is licensed, and that the product is registered with the Division of Securities;
Conducting a background check on advisers to uncover any enforcement actions or complaints against them;
Being leery when it comes to friends’ and family members’ recommendations of an opportunity or promoter;
Being skeptical about any opportunity or promoter who promises unusually high or "guaranteed" returns;
Asking for and read the prospectus or offering documents in full; and
Making sure they thoroughly understand the opportunity before they invest.

For more about how to choose a trustworthy adviser or how to avoid investment fraud in 2012, browse our investor library here.

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