Category: Securities Fraud

Campbell Mayor Convicted of Securities Fraud

Campbell Mayor Convicted of Securities Fraud

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A former Campbell city mayor has been sentenced to nearly five years in prison for investment fraud. In addition, the presiding judge ordered the former Campbell mayor, George Krinos, to pay $1,211,385 in restitution to his victims.

Krinos Holding Securities Fraud Scheme

The 39-year-old former Campbell mayor of a small town in Ohio was accused of orchestrating a nearly $1.2 million investment fraud scheme from 2011 to 2014. Krinos ran a company known as Krinos Holdings to sell securities to at least ten people in Ohio, causing them significant financial losses.

Since the securities were unregistered, Krinos exclusively sold them to “accredited investors”– individuals with a net worth in excess of $1 million or who met specific, high-dollar income thresholds.

Krinos told investors that the fund would be used to provide venture capital for various client companies seeking funds from Krinos Holdings. In exchange, he promised that initial investments would rise in value as much as $5 or $6 per share.

Instead of using the funds raised for business purposes, Krinos used the money for personal expenses and to engage in unauthorized foreign currency transactions.

To cover up the scheme, Krinos told investors that he had more than $600 million under management and submitted falsified letters and statements that reflected high account balances. The personal expenses were passed off as “sales and marketing” costs.

By law, securities sold have to be registered with the Securities and Exchange Commission (SEC).

Securities Fraud Accompanied by Failing to Pay Tax

In January, Krinos pleaded guilty to one count of securities fraud and one count of willfully failing to pay taxes. In addition to the securities fraud scheme, Krinos also improperly withheld taxes from his employees, without paying those taxes to the IRS. The taxes, including federal income taxes and Federal Insurance Contribution Act taxes, total to approximately $91,495.

Krinos was mayor of Campbell, Ohio from 2010 to 2011.

Have You Been a Victim of Securities Fraud?

If you are the victim of securities fraud or believe you have been scammed, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

With offices in Los Angeles, New York, West Palm Beach and Miami, the securities lawyers at Dimond Kaplan & Rothstein, P.A.  represent clients nationwide and may be able to help you recover your investment losses.

Contact an attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Barclays bank is facing fraud for Barclays Qatar Investments.

Fraud Charges Related to Barclays Qatar Investments

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Fraud Charges Related to Barclays Qatar Investments

A five-year investigation by Britain’s Serious Fraud Office (SFO) has led to criminal charges against Barclays and four former Barclays executives. The charges are related to the bank’s dealings with Qataris during the financial crisis.

SFO Charges 4 Former Barclays Executives

The SFO has charged the bank and two top executives with two counts of conspiracy to commit “fraud by false representation” and one of “unlawful financial assistance”. John Varley, the head of the bank, and Roger Jenkins, who headed Barclays’ investment banking and management businesses in the Middle East, are the implicated executives. In addition, SFO charged former executives Tom Karlaris and Richard Boath with “fraud by false representation.” These two have stated that they will contest the charges.
Remarkably, the criminal charges are the first of their kind to be leveled against the head of a big international bank as a result of the crisis.

Barclays Raised Equity from Qatari Investors

The charges are related to Barclays’ arrangements with the Qatari investors, including a loan of $3 billion dollars made to the Gulf state in November 2008.

When banks began to fail at the start of what was to become a global financial crisis, Barclays was one of the few banks to avoid a government bailout. As the crisis deepened, Barclays was able to escape taxpayer rescue by raising private equity to meet the higher capital targets set by regulators. The investments, notably, came from Qataris.

Prior to the November 2008 loan, Barclays agreed to pay £322m over five years to a Qatar Holding for advisory services in the Middle East in June and October of 2008. At the time, the first payment was disclosed, but the second payment and the fees were not.

That June, Barclays raised £4.5 billion from a variety of Qatari investors, including the state-owned Qatar Investment Authority (QIA) and Challenger, which represented Qatar’s then prime minister. A few months later, in October, the bank raised up to £7.3 billion more from additional investors, including Qatar Holding. Qatar Holding is an arm of the QIA, which owns just under 6% of Barclays.

Under investigation, The Financial Conduct Authority (FCA), a British regulator, and American authorities looked into the service agreements, resulting in a fine of £50m in 2013. The bank appealed.

Did You Invest with Barclays?

If you invested with Barclays or think you may be involved in securities fraud, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an attorney to review your rights and options, the securities lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerages firms for their wrongful actions.

With offices in Los Angeles, New York, West Palm Beach and Miami, our securities attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Martin Shkreli Securities Fraud Trial

Martin Shkreli Securities Fraud Trial Begins

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Martin Shkreli Securities Fraud Trial

Former pharmaceutical executive Martin Shkreli goes to federal court this week facing charges of conspiracy, securities fraud and wire fraud for allegedly cheating investors out of more than $11 million between 2009 and 2014. The Martin Shkreli Securities Fraud trial will take place in Manhattan.

Federal prosecutors allege that Shkreli lied to investors in MSMB Capital and MSMB Healthcare about the performance and assets of the investment funds. They have also accused him of mismanaging money at his investment funds Elea Capital, MSMB Capital, MSMB Healthcare. Shkreli allegedly used money from Retrophin to pay off MSMB investors, as well as personal loans and other debts, all while acting as CEO of Retrophin. Retrophin is the biotechnology company Shkreli founded in 2011.

Evan Greebel, a former lawyer for Retrophin, also has been charged with assisting with the fraudulent activity. Both Shkreli and Greebel have pleaded not guilty.

Pharma Exec Gains Notoriety

Martin Shkreli first gained notoriety for raising the price of the life-saving drug Daraprim while he was the CEO of Turing Pharmaceuticals. In September 2015, the company obtained the manufacturing license for this anti-parasitic drug used by AIDS patients and consequentially increased its price by more than 5,000%. The increase hiked the price from $13.50 to $750 per pill.

The price hike caused much controversy, and after his December arrest in 2015 on charges of securities fraud, he resigned from Turing. The controversy is unrelated to his criminal trial in New York federal court.

Have You Been a Victim of Investment Fraud?

If you are the victim of investment fraud or believe you have been scammed, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an attorney to review your rights and options, the securities lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerages firms for their wrongful actions.

With offices in Los Angeles, New York, West Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Securities Fraud Municipal Bond Case

Town Supervisor Convicted in Securities Fraud Municipal Bond Case

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First Conviction in Securities Fraud Municipal Bond Case 

A Ramapo, New Jersey town supervisor has been convicted in a securities fraud municipal bond case related to the financing of a controversial stadium. The conviction marks the first conviction for securities fraud in connection with municipal bonds.

Ramapo Town Supervisor Christopher St. Lawrence lied to investigators about the town’s finances, covering the town’s problems.  The fraud at issue related to the issuance of $25 million in municipal bonds to pay for construction of a minor league baseball stadium. The stadium cost $58 million.

A jury in a White Plains federal court convicted the 65-year-old supervisor on 20 counts of conspiracy, securities fraud and wire fraud. He was acquitted of one count each of securities fraud and wire fraud.

Call a Securities Fraud Attorney Today

If you are looking for a securities fraud attorney to review your rights and options, the securities lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerages firms for their wrongful actions.

Contact a securities fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

EB-5 Investment Fraud Scam reaches Federal Court in California

EB-5 Investment Fraud Scam reaches Federal Court in California

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Chinese Investor Bilked out of $1.5 Million in EB-5 Investment Fraud Scam

A Chinese investor appeared in federal court in California last week, claiming she was defrauded of $1.5 million as a part of an investment program designed to provide temporary (and eventually permanent) legal residence in the United States through the government’s EB-5 investor visa program.

Shuting Kang accused California-based Shengrun International Industry Group Inc. and Sino-USA Entrepreneur Association Inc. as well as Sophie Harrison, of cheating her and her son with promises to get temporary green cards in exchange for various loans and an investment in a proposed Oakland residential real estate development under the name “229 Project”.

After investing the money, Kang found out that the 229 Project was “bogus,” and that Harrison spent Kang’s money for her own personal benefit.

EB-5 Investment Fraud Scam Discovered After Personal Visit

Harrison met personally with Kang, who told her that she and her son could obtain green cards within two years in exchange for a $500,000 investment and $8,000 immigration services fee. Harrison urged Kang to wire money in various amounts, while being urged to not question the process.
After an extended period of silence from Harrison, Kang had a friend visit the site in September 2015, only to discover that the 229 Project was an empty piece of land. Harrison then told Kang that the project ran into problems and the money was gone. Harrison did not complete the immigration paperwork or refund Kang’s money.

Scammer Had Many Aliases

Harrison also had several aliases, including Sophia Wang, Xianqin Wang Harrison, Xianqin Wang, and Xueqing Wang.

Did You Invest with Harrison or Shengrun International Industry Group?

If you invested with Harrison or have been the victim of another EB-5 investment fraud, contact an experienced investment fraud attorney today.

Call an Investment Fraud Attorney Today

If you are looking for an attorney to review your rights and options, the securities lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerages firms for their wrongful actions.

With offices in Los Angeles, New York, West Palm Beach and Miami, their class action attorneys represent clients nationwide and can help you recover your investment.

Contact an attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Bid to Avoid Comprehensive Care EB-5 Fraud Suit Denied

Bid to Avoid Comprehensive Care EB-5 Fraud Suit Denied

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A California federal judge denied the efforts of two California-based companies to avoid the Comprehensive Care EB-5 Fraud Suit. The lawsuit was brought by the U.S. Securities & Exchange Commission (SEC), accusing a businessman of misappropriating funds raised through the increasingly popular EB-5 immigrant investor program.

SEC Files Suit Against Comprehensive Care

The SEC accused Thomas Henderson and his two companies, Comprehensive Care of California LLC and Comprehensive Care of Oakland LP, of mishandling nearly $10 million in EB-5 investments for personal gain, purchasing a home and building two restaurants with the proceeds.

The companies argued that the SEC’s fraud claim was aimed at Henderson alone, but the judge disagreed, stating that Henderson used his companies to “mask” the true source of his funds.

Henderson raised more than $115 million from approximately 215 investors, most of whom were Chinese nationals. Each contributed at least $500,000 to fund one of seven projects. Instead of the money going strictly to the projects, Henderson is accused of commingling investor assets with company assets, using funds to purchase a $1.4 million home in Oakland, $3.8 million to build and operate two restaurants, and $5.1 million for other unrelated business ventures.

As a result of the court’s ruling, the case will proceed against both Henderson and his two companies.

About EB-5 Investments

EB-5 investments have grown in popularity for investors abroad seeking legal residence in the United States. By investing at least $500,000 (or by meeting other factors), the investor can qualify for temporary residence that can lead to permanent residence after a period of time.

Do you think you have a claim for the Comprehensive Care EB-5 Fraud Suit?

If you invested with Thomas Henderson, one of his projects, or have been the victim of another EB-5 fraud, contact an experienced investment fraud attorney today.

Call an Investment Fraud Attorney Today

If you are looking for an attorney to review your rights and options, the attorneys at Dimond Kaplan & Rothstein, P.A. have helped investment fraud victims throughout the United States and recovered millions for those investors.

With offices in Los Angeles, they have helped stockbroker fraud victims throughout Brentwood, Santa Monica, Hollywood, and West Hollywood.

Stockbroker Charged with Making Volatile Trades

Stockbroker Charged with Making Unsuitable Investments

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Stockbroker Made Risky Trades and Paid Personal Bills

A New York-based broker has been charged with using client funds to make very risky and highly volatile trades without their knowledge and using clients’ money to pay his credit card bills and other personal expenses.

SEC Claims Stockbroker Made Unsuitable Investments

According to the Securities & Exchange Commission (SEC), Demitrios Hallas used client money to make trades that were not suitable to their risk tolerance and portfolio. Hallas lost more than $150,000 this way. According to the SEC, Hallas also allegedly stole more than $170,000 from a single client over a period of two years.

From 2001 through 2015, Hallas was registered at 11 different brokerage firms, including Santander Securities LLC and Forefront Capital Markets. Between September 2014 and October 2015, he is alleged to have bought and sold 179 daily leveraged exchange-traded notes (ETNs) and exchange-traded funds (ETFs) with savings entrusted to him by five different clients – four of whom he began representing while at Santander. Because of the complexity and inherent risk of leveraged ETFs and ETNs many brokerage firm strictly prohibit brokers from selling these investment products to retail investors.

SEC Claims Hallas was Reckless

According to the complaint, Hallas either knew or was reckless in not knowing, that he had no reasonable basis to make such trades, and should have known that these trades were not consistent with his clients’ needs and risk tolerance.

For clients with little to no investing experience, trading ETNs and ETFs can be particularly risky. Knowing that Hallas would meet clients in neutral venues and have his clients sign account forms that contained inflated or inaccurate information regarding their income, net worth, and risk tolerance.

Further, the SEC claimed that Hallas himself lacked the understanding necessary to trade leveraged ETFs and ETNs. As such, Hallas would not have been able to properly explain the nature and risks of leveraged ETFs and ETNs to his clients. In one instance, he lost one client $61,492 in a single day.

In addition to his risky trading, Hallas is accused of pocketing more than $100,000 from a client while he was working at Chase Investment Services Corporation.

Stockbroker Faced Prior Claims

Hallas also was investigated in 2014, ultimately settling with FINRA after he recommended that two clients liquidate their securities and invest in mutual funds. He was suspended for 30 days and ordered to pay restitution exceeding $11,000.

Are you a Victim of Securities Fraud?

Unfortunately, some brokers may act in an unscrupulous fashion, preying on inexperienced investors. And some brokers may not even understand the investment products that they recommend and sell to their clients. If you feel that you have been victimized by a negligent stockbroker or by investment fraud, you should consult an experienced securities attorney to make sure that your broker is acting with your best interests in mind.

Call a Securities Attorney Today

Contact an attorney at The Fraud Report’s partner law firm, Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options. DKR’s lawyers have helped investors recover leveraged ETF investment losses from some of the largest brokerage firms on Wall Street.

With offices in Los Angeles, our securities lawyers throughout Santa Monica, Beverly Hills, and Hollywood they assist you with any securities issues that you may be facing.

Deutsche Bank to Pay $157M in Volcker Rule Violations

Deutsche Bank to Pay $157M in Volcker Rule Violations

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Two Federal Reserve probes into Deutsche Bank have resulted in the giant bank agreeing to pay nearly $157 million to settle claims that it violated the Volcker Rule by permitting traders to rig foreign exchange rates.

According to the Federal Reserve, the bank’s “deficient policies and procedures” allowed trading desks to disclose their positions and coordinate with traders at other banks to move prices in ways that benefitted Deutsche Bank.

Forex and Volcker Rule Violations Result in Fines

Roughly $137 million of the fine relate to Forex violations, with the other $20 million fine resulting from risky trading in the bank’s proprietary trading account. A bank must follow the Volcker Rule, which is enforced by five federal agencies and established under the 2010 Dodd-Frank Act. The Volcker Rule prohibits U.S. banks from making certain kinds of speculative investments that do not benefit their customers.

The bank also will be required to submit plans and progress reports regarding its compliance with the applicable rules and regulations.

Deutsche Bank’s History of Violations

This isn’t the first time Deutsche Bank has been fined, and it is far from its largest fine: In December, the bank paid $7.2 billion to resolve charges related to its sales of certain mortgage-backed securities before the financial crisis. And earlier this year, the bank paid $425 million to New York state regulators to resolve charges that it failed to properly oversee traders who helped certain Russian individuals avoid capital controls through rigged trades.

Call a Securities Fraud Attorney Today

With offices in Los Angeles, their securities lawyers have helped securities fraud victims throughout Newport Beach, Laguna Beach, Mission Viejo, and Manhattan Beach and recovered over $100 million from banks and brokerages firms for their wrongful actions.

Contact an attorney at Dimond Kaplan & Rothstein, P.A., today to schedule an appointment or consultation to review your rights and options.

Shelman Securities Executive Sentenced in Securities Fraud Case

Shelman Securities Executive Sentenced in Fraud Case

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A promoter of oil and gas investments associated with Shelman Securities Corp. in Texas was sentenced to six years after entering a guilty plea in state court, according to the Texas State Securities Board.

Executive Promises False Oil & Gas Securities

Mark Parman was facing securities fraud charges after soliciting nearly $850,000 in investments after promising to use the money on oil and gas development projects. Instead, Parman used the funds to support his lifestyle.

Parman also failed to tell investors that in 2003, he and Shelman Securities Corp., of which he was chairman, were ordered to pay $1.7 million in restitution to investors in limited partnership offerings, according to a 2014 indictment. In that matter, Parman and his company were investigated by the Financial Industry Regulatory Authority (FINRA), who also revoked Parman’s license as a securities dealer and Shelman Securities’ license as a broker-dealer.

Further, Parman also failed to tell investors that he and Shelman Securities were liable for a $311,000 judgment from 2004 regarding claims of churning – that he and the company were trading excessively in order to rack up commissions. Parman also filed for a Chapter 7 bankruptcy and was jailed at one point for contempt of court after failing to respond to discovery in a case in which he was accused of not paying back a debt.

Call a Securities Fraud Attorney Today

If you invested with Parman or his company Shelman Securities, you may have legal rights that require your immediate attention.

Securities Fraud Attorneys that Get Results

The Fraud Report partners with the attorneys at Dimond Kaplan & Rothstein, P.A., contact them today to schedule an appointment or consultation to review your rights and options.

With offices in Los Angeles that cover the surrounding areas of Santa Monica, Malibu, Beverly Hills, Bel Air, Hollywood, West Hollywood, Pacific Palisades, Brentwood, and Westwood, the securities lawyers at DKR have recovered over $100 million from banks and brokerages firms for their wrongful actions.

MLB Player Charged in Insider Trading Case

Former MLB Player Facing Insider Trading Charges

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A former MLB player is facing insider trading charges in court. Former Major League Baseball player Doug DeCinces has been accused of trading on non-public tips regarding Abbot Laboratories takeover of Advanced Medical Optics Inc. He recently asked a California federal court to instruct the jury in his insider trading case that certain testimony at trial will not apply to him.

DeCinces argued that testimony presented from Brian Fogarty, an athletics manager at the University of San Diego, does not apply to him. DeCinces played professionally in the 1970s and 1980s for several teams, mainly the Baltimore Orioles and the California Angels.

Insider Trading Charges and What They Mean

Insider trading occurs when someone uses non-public information to buy or sell securities, or passes along that information to another, who then buys or sells the securities. If you act on information not publicly available to make a profit through the securities market, you may be guilty of insider trading.
In this case, Fogarty claimed that DeCinces provided him with information regarding the potential takeover and that Decinces had received the insider information from James Mazzo, then CEO of Advanced Medical Optics. DeCinces argued that Fogarty’s testimony is hearsay, and therefore should not be used as evidence against him.

Navigating an Insider Trading Case

The legalities around what constitutes insider trading can be difficult to navigate. If you received a “tip” or other information that you believe is confidential in nature and not public, you should consult a qualified securities attorney before trading to make sure that you are acting appropriately.

Call an Insider Trading Attorney Today

Contact an attorney at The Fraud Report’s partner law firm, Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

With offices in Los Angeles, our securities lawyers throughout Santa Monica, Beverly Hills, and Hollywood can assist you with any securities issues that you may be facing.