Articles Posted in Fraud and Misrepresentation

June, 2011: Securities Fraud – Fictitious Investments: The Oregon Department of Consumer and Business Services issued a cease-and-desist order and fined AXA Advisors LLC $75,000 for failing to supervise its former registered representative, Jacqueline Atkinson of Bend. As part of the order, AXA agreed to compensate clients that Atkinson defrauded of more than $1.9 million…

November, 2011: As part of the continued fallout relative to the Madoff fraud, the Securities and Exchange Commission (SEC) charged a longtime Bernie Madoff employee with fraud for his role in creating fake trades to facilitate the massive Ponzi scheme. The SEC alleges that David Kugel, who worked at Bernard L. Madoff Investment Securities LLC…

South Florida Senior, Elder and Retirement Financial Abuse and Exploitation FINRA Arbitration and Litigation Attorney: The Financial Industry Regulatory Authority (FINRA) is a self-regulatory authority responsible for overseeing the practices of securities broker dealers. For several years, FINRA has focused on firms’ fair dealings with senior investors, as well as investors at or approaching retirement…

Fraudesters never stop in inventing ways to take advantage of the investing public. One such example is discussed below. The Securities and Exchange Commission (SEC) recently filed an emergency enforcement action to stop a fraudulent scheme targeting investors seeking coveted stock in Internet and technology companies like Facebook before they go public. The SEC alleges…

Trading Seminar Fraud: Over the years, it has not been uncommon to see upstart individuals and entities promote the success of their trading strategies, which many times turn out to benefit them as opposed to the investor. This is because some trading seminar promoters may use misleading or untrue statements to lull investors into purchasing…

Securities and Exchange Commission v. Imperia Invest IBC, Civil Action No. 2:10-cv-00986-B (D. Utah) On October 6, 2010, the Securities and Exchange Commission obtained a temporary restraining order and emergency asset freeze against Imperia Invest IBC (“Imperia”) for defrauding more than 14,000 investors worldwide. The Commission’s complaint alleges Imperia raised in excess of $7 million,…

The North American Securities Administrators Association (NASAA) has noted a recent increase in reports or complaints of fraudulent investment schemes that utilized a self-directed IRA as a key feature. State securities regulators have investigated numerous cases where a self-directed IRA was used in an attempt to lend credibility to a fraudulent scheme. Similarly, the SEC…

The purpose of this post is to provide the reader with some tips on how to avoid investment scams. Obviously, this list is not all-inclusive but it should get you to start thinking about what to shy away from with the goal of protecting your hard earned money. Be skeptical of “free lunch” seminars. Even if…

Investment Scams – South Florida Securities and Investment Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney: When it comes to making an intelligent investment decision, nothing is fool- proof. However, there are some basic sales tactics that should turn your “red light” on. Some of the most common include: The “Phantom Riches” Tactic: Here the salesperson…

Securities Fraud Litigation, FINRA and AAA Arbitration Attorney, Russell L. Forkey, Esq. July, 2011: Securities and Exchange Commission v. Joshua Constantin et al., United States District Court for the Southern District of New York, Civ. Action No. 11-CV-4642 (filed July 6, 2011) SEC CHARGES NEW YORK BROKERAGE FIRM AND TWO EXECUTIVES WITH DEFRAUDING INVESTORS IN…