lawyers

Philadelphia Woman Charged in $100M Investment Fraud

According to documents filed in the case by the US Attorney’s office, from February 2016 to August 2019, Philadelphia investment fund manager Brenda Smith used her investment fund, Broad Reach Capital, to collect more than $100 million in funds from investors who believed her lies about the funds assets and performance.

PA Ponzi Scheme Busted - What Investors Might Have Done Differently

A former Williamsport insurance agent, William E. Hocker, was sentenced to 17 years in prison and required to pay back almost $1.5 million which he took from unsuspecting investors, including his own mother. In October, Hocker pleaded guilty to securities fraud involving the scheme he perpetrated for 10 years. Hocker, who was licensed to sell insurance products but not annuities or securities, preyed mostly on family, friends, and the connections they brought to him. In the classic “too good to be true pitch,” Hocker lured investors in by promising them incredibly high returns of 25-30% with little to no risk.

Broker-dealers May Be Responsible for Selling Away of Woodbridge

A recent judgment in FINRA arbitration for nearly a quarter of a million dollars against a broker who sold Woodbridge notes to investors has struck fear in the hearts of many firms who weren’t paying attention to their brokers over the past few years. If one firm can be held responsible for the failings of a broker, they all potentially can. And that’s a billion-dollar problem.

As Madoff Drifts into the Mists of Memory, Big Fraud Is Coming Back

Once you're inside a Ponzi Scheme, it can look and feel a lot like a normal investment opportunity, especially if the scheme operator is adept at creating false investment documentation. The key is not to get draw into a Ponzi Scheme in the first place. The most common signs of these frauds are evident from the beginning - that's when you have the greatest chance of identifying them.

Hedge Fund Ponzi Busted

According to the Massachusetts Depart of Justice, Raymond Montoya ran his Ponzi scheme for almost a decade under the auspices of a fund called RMA Strategic Opportunity Fund, LLC. Over the years, investors transferred millions of dollars to Montoya on the promise that he would invest the money in stocks and bonds.

Ponzi Schemer Paid for Prayers - SEC Probe

An investment advisor charged by the Securities and Exchange Commission with running a multi-million dollar Ponzi scheme spent close to a million dollars on prayers from Hindu priests in order to keep the feds at bay. In spite of her prayers, however, Dawn Bennett was convicted by the federal government of defrauding more than 200 investors of nearly $18 million over the past several years.

Ponzi-scheme Operator Sentenced to 30 years in Prison

According to the US Attorney’s office in Arizona, a group operating a Ponzi Scheme solicited millions of dollars in investments for various companies and projects, including real estate, recycling, and land development in Mexico. The solicitations were made through numerous seminars, magazines articles, radio broadcasts, and private offerings.

SEC Busts $350 Million Ponzi-like Scheme

The SEC (Securities Exchange Commission) announced today that it has obtained a court order to shut down a major investment operation worth approximately $345 million. According to the SEC complaint, the scheme involved more than 230 investors from the United States and was lead by Kevin B. Merrill and Cameron Jezierski.

Phony Billionaire Connected to Ponzi Scheme

Financier Steve Stovanovich liked to play the big man. Over the past few years, he has pledged multimillionaire donations to the University of Chicago and institute named on his behalf. But as a recent investigation by the Chicago Maroon has revealed, Stovanovich may not possess the vast wealth he says he has.

PA Brokerage Ordered to Pay $1M in Damages

According to public records, Greensburg, Pennsylvania based brokerage firm, Trustmont Financial Group, Inc. was ordered by the Financial Industry Regulatory Authority to pay an aggrieved client more than $1 million in damages. 

FINRA Broker Disciplinary Action Report: June 2016

Each month and again on a quarterly basis, the agency that regulates the financial industry, FINRA (Financial Industry Regulatory Authority), produces a detailed report that runs down all disciplinary actions recently taken against brokerage firms and brokers. This long list of alleged wrongdoing and misconduct reads a lot like a police blotter. We strongly encourage any investor who suspects their broker and/or broker-dealer of having lost them money on dubious terms to at least skim this report to see if you recognize any names, schemes, products, or securities.