Regulator says SII Investments Failed to Supervise Brokers

Regulator says SII Investments Failed to Supervise Brokers

dkradmin

Massachusetts securities regulators recently charged SII Investments with dishonest or unethical conduct and failure to supervise the sale of non-traded real estate investment trusts (REITs) to investors by inflating the liquid net worth of their clients.

Massachusetts securities regulations require that an investor’s purchase of a non-traded REIT can constitute no more than 10% of the investor’s liquid net worth. The regulators’ complaint charges that SII brokers acted dishonestly, improperly calculating their clients’ liquid assets on suitability and disclosure forms for non-traded REITs. The complaint states that SII’s compliance team failed to supervise the sale of inappropriate investments.

The brokerage firm allegedly sold more than $4 million of non-traded REITs, resulting in high commissions for both the firm and its brokers. State regulators say that many of the non-traded REITs would have been in violation of Massachusetts limitations, as well as SII’s internal compliance requirements and mandates. The complaint states that even though SII’s policies are clear that annuities are illiquid products, agents included annuities with material pending surrender fees as part of their liquid net worth calculations. Had these calculations been done correctly, many of these non-traded REIT sales could not have occurred.

SII Investments Part of LPL Financial

SII is an independent broker-dealer within National Planning Holdings, which is being acquired by LPL Financial. In a released statement by LPL, the company said, “Under the construct of our agreement, LPL would not be liable for this matter.”

Have You Lost Money with SII or LPL Financial?

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

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage 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 investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

WealthCFO Advisor Charged with Stealing and Identity Fraud

WealthCFO Advisor Charged with Stealing and Identity Fraud

dkradmin

The U.S. Securities and Exchange Commission (SEC) recently brought fraud charges against a former New York investment advisor of the firm WealthCFO, now living in Egypt, and his operations manager, and accused them of stealing approximately $378,000 from seven clients.

The SEC’s complaint alleges that investment advisor Tarek D. Bahgat of Williamsville, N.Y. misappropriated money from clients, including senior citizens. Bahgat obtained internet bill-paying privileges that allowed him to impersonate his clients in telephone calls triggering money transfers. The money transferred from client accounts was directed to Bahgat’s personal accounts or those of his firm, WealthCFO.

Investment Advisor Had Accomplice

The SEC complaint also says that Lauramarie Colangelo, the firm’s operations manager, was an accomplice in the scheme, posing as a client of Bahgat’s during a call with a broker-dealer.

The SEC seeks permanent injunctions and civil penalties, as well as disgorgement plus interest. The complaint also names WealthCFO as a relief defendant for the purpose of disgorging illicit proceeds, plus interest.

Have You Lost Money to an Investment Advisor?

If you believe you have been the victim of investment fraud or believe your investment advisor is not acting in your best interest, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage 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 investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Leonard Vincent Lombardo Charged for Real Estate Scam

Leonard Vincent Lombardo Charged for Real Estate Scam

dkradmin

The U.S. Securities and Exchange Commission (SEC) has charged former broker Leonard Vincent Lombardo for allegedly defrauding over 100 investors in a $6 million real estate investment scheme. The charges also include his company, The Leonard Vincent Group, and his business partner.

Real Estate Scheme Involved Distressed Assets

According to the SEC’s complaint, Lombardo defrauded investors with false claims, saying their money would be invested in distressed real estate with high returns. Some investors allegedly were told that their investments had increased by more than 50% in a matter of months when the investments actually had no earnings.

Lombardo allegedly invested only a fraction of the money in real estate and used the rest of it to support business ventures in the e-cigarette industry and personal expenses such as car payments, marina fees, and visits to tanning salons.

Lombardo Agrees to Settle Case 

Lombardo, along with his company The Leonard Vincent Group, and its CFO Brian Hudlin, have agreed to settlements that are subject to court approval. He and his firm have agreed to disgorge $5.88 million to investors. Hudlin, without admitting or denying the SEC’s allegations, has agreed to pay a $40,000 penalty.

In a parallel criminal case, Lombardo pled guilty to investment fraud charges brought by the U.S. Attorney’s Office for the Eastern District of New York in June 2017.

Lombardo Barred from Securities Industry for Over 20 Years

Lombardo has been barred from the securities industry for more than two decades. The advisor once worked at Stratton Oakmont, the infamous brokerage firm that was the basis for Martin Scorsese movie “The Wolf of Wall Street,” which FINRA expelled from the industry in 1998.

Did You Lose Money to Broker Leonard Vincent Lombardo?

If you believe you have been the victim of stockbroker misconduct, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage 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 investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

SEC Says Quigley Brothers Stole $855K from Investors

SEC Says Quigley Brothers Stole $855K from Investors

dkradmin

The U.S. Securities and Exchange Commission (SEC) has filed a federal suit in New York alleging that Michael and Brian Quigley stole approximately $855,000 from investors who thought they were investing in penny stock companies, investment funds, and blue-chip companies.

In a complaint filed August 10th, the SEC alleges that between 2003 and 2012, the Quigley brothers misled at least four different investors to believe their money was going toward companies about to go public. But the Quigleys pocketed the money.

According to the SEC, the two brothers, along with another brother, William Quigley, convinced investors to wire money to bank and brokerage accounts. To reassure investors, the brothers forged documents and account statements and made up fake firms and fake colleagues.

In March of this year, William Quigley admitted to stealing more than $500,000 from unsuspecting investors and agreed to be barred from participating in penny stock offerings and from associating with broker-dealers. He is a former Trident Partners Ltd. chief compliance officer.

The SEC is urging the court to bar the pair from participating in penny stock offerings and to order the brothers to turn over all the ill-gotten gains, while also paying prejudgment interest and civil penalties.

Are You the Victim of Investment Fraud?

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

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage 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 investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Gerova Ex-CEO Gets 78 Months in Pump-And-Dump Scheme

Ex-CEO Gets 78 Months in Gerova Pump-And-Dump Scheme

dkradmin

Gerova Ex-CEO has been sentenced in New York federal court to 78 months in prison. In addition to prison time, U.S. District Judge Kevin Castel also ordered the ex-CEO to serve one year of supervised release and forfeit about $19 million.

Gerova Ex-Ceo Convicted in Scheme

Last year in September, a jury convicted the Gerova ex-CEO Gary Hirst of securities fraud in connection with the illegal Gerova pump-and-dump scheme. According to prosecutors, the former executive secretly awarded nearly $72 million dollars of Gerova’s stock to himself and others. He did so by quietly taking control of nearly half of the company’s public float, cashing out after bribing investment advisers to buy shares for their own clients.

Prosecutors said, in total, the scheme generated nearly $20 million dollars of illegal profit. Of that, Hirst received a total of $2.62 million.

In a statement, acting U.S. Attorney Joon Kim said, “Hirst and his co-conspirators issued large amounts of stock, lied about their roles, and found other novel means to defraud the stockholders of Gerova Financial and the investing public.”

Gerova Scheme Involves Seven People

Hirst, 64, is one of seven people charged and sentenced over the Gerova pump-and-dump scheme. Former investment banker Jason Galanis, along with his father and two brothers also have been charged and sentenced. One defendant remains at large.

Have You Been a Victim of Securities Fraud?

If you have been a victim of securities fraud, you may have certain legal rights that require your immediate attention.

Call a Securities Fraud Attorney Today

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

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

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

TV Station Schemer Colin A. Chisholm Must Pay $2.1M

TV Station Schemer Colin A. Chisholm to Pay $2.1M

dkradmin

TV Station Schemer Colin A. Chisholm III has been sentenced to four years in prison and $2.1 million in restitution for stealing more than $2 million from investors. According to court documents, Chisholm solicited investors claiming investor money would be used to help fund a satellite television network startup.

Chisholm was charged in December 2015 for scamming investors when he claimed that he was on the verge of securing significant funding for a television startup company called The Caribbean Television Network Inc., or TCN. According to federal prosecutors, he claimed that the network was on the verge of securing millions of dollars in funds and, in the interim, he needed investor funds while the TV network was getting set up.

According to the indictment, investors’ money was used to satisfy a more than $250,000 judgment after Verizon Select Services had mistakenly wired money to one of Chisholm’s former businesses, long-distance phone company Caribtel Ltd., that Chisholm them had used for his own purposes. Other funds were used for Chisholm’s lifestyle, including purchase of a yacht, health and wellness expenses, and the rental of a home at Lake Minnetonka.

The TV Station schemer kept up the ruse for more than decade – lying to investors and potential investors about progress. He also lied about his personal and professional background, claiming that he worked with media mogul Ted Turner and had ties to the Bush family. According to the indictment, all of these claims were false.

Chisholm Ordered to Turn Himself In

Chisholm was ordered to turn himself in to federal authorities by Sept. 25. He was sentenced to 48 months in prison, with three years of supervised release for one count of mail fraud. The court dismissed five remaining counts of mail fraud and seven counts of wire fraud. He also has been ordered to pay approximately $2.1 million in restitution. 

Are You a Victim of Colin A. Chisholm?

If you believe you have been the victim of fraud committed by Colin A. Chisholm, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage 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 investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Gold and Diamond Investment Fraud Scheme Leads to Prison

Gold and Diamond Investment Fraud Scheme Leads to Prison

dkradmin

The originator of a gold and diamond investment fraud scheme has been sentenced in a North Carolina federal court to more than seven years in prison. The scheme, orchestrated by Cassell Anthony Kuoh, bilked victims out of more than $9.5 million.

Kuoh is a Liberian national who lived in Liberia and owned Phoenix Mining and Investment Group (Phoenix Mining), which claimed to be in the precious metal and gemstone business.

From 2012 to 2016 Kuoh devised and operated a scheme involving the purchase, shipment, and export of unrefined gold and rough diamonds from Liberia.

He told investors their money would be used to move the gold and diamonds into the United States, which then would be refined or cut and sold for a profit. As part of the scheme, he even invited investors to Africa to visit the mining operations and inspect the gold and diamonds.

For investors who made the journey, operations were set up by Kuoh to look legitimate and profitable, when in fact Kuoh borrowed gold and diamonds from others. Once Kuoh received the funds from investors he used stall tactics and lies to cover up the scheme, including falsifying documents and creating fake companies.

According to prosecutors, Kuoh used investors’ money to fund his personal lifestyle, including the purchase of a house in Harrisburg, North Carolina.

Kuoh Pleads Guilty Prior to Sentencing

In addition to seven years in prison, Kuoh was ordered to pay $16.2 million in restitution. As a Liberian national, he also will be subject to deportation proceedings upon the completion of his federal sentence.

In March 2017, he pleaded guilty to conspiracy to commit wire fraud. Kuoh’s co-defendant, Emmanuel Tarr, 30, of Liberia, is awaiting sentencing after pleading guilty to wire fraud conspiracy.

Do You Lose Money in an Investment Fraud Scheme?

If you have been a victim of an investment fraud scheme or are suspicious that your broker is not acting in your best interest, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from brokers and brokerage 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 investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Blazer Capital Management Advisor Pays Settlement

Blazer Capital Management Advisor Pays Settlement

dkradmin

A financial advisor and the founder of Blazer Capital Management will pay more than $1.9 million to resolve allegations that he defrauded clients, including some professional athletes. The allegations, brought by the U.S. Securities and Exchange Commission (SEC), claim the advisor used $2.35 million dollars of client money without permission, and lied to agency investigators about it.

The claims state that Pittsburgh-based adviser Louis Martin Blazer III used funds from the accounts of several clients to make investments in a pair of movies and other ventures. To conceal his actions, he diverted client’s funds to other accounts and falsified documents.

The SEC accused Blazer of taking a total of $2.35 million from five clients without authorization, using $790,000 of these funds to pay others in the group in a “Ponzi-like” scheme.

Advisor to Pay $1.9M for Defrauding Athletes

Judge J. Paul Oetken signed off on a final judgment to end the claims brought by the SEC. Under the deal, Blazer agreed to settle without admitting or denying the charges. He will pay $1,558,647 in disgorgement, $220,051.57 in prejudgment interest, and a $150,000 civil penalty for a total settlement of $1,928,698.57.

The final judgment comes approximately 15 months after the SEC filed a complaint against Blazer in the Southern District of New York and simultaneously announced a partial settlement related to the alleged scheme.

Are You a Victim of Investment Fraud?

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

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage 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 investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

 

Athlete Overcharged $1.2M by Investment Advisor

Athlete Overcharged $1.2M by Investment Advisor

dkradmin

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against an investment advisor in California federal court on accusations of deceiving a professional athlete client and his wife in relation to inflated management fees of more than $1 million.

The SEC claims that the advisor, Jeremy Drake, charged the unnamed athlete and his wife 1 percent in management fees but told the couple the fee was between 0.15 percent and 0.2 percent. The fee difference resulted in a payment to Drake of $1.2 million more than what he represented to his client.

In order to conceal the discrepancies, Drake falsified documents and created a fake persona to supply false evidence to corroborate his claims. When Drake was confronted by the athlete’s wife, he told her that reporting the issue to the brokerage firm would create bad publicity for the couple. The athlete’s wife refused and came forward resulting in the termination of Drake.

SEC Seeks Disgorgement of Funds

The SEC claims for violating the Investment Advisers Act and seeking disgorgement of all the funds Drake earned from his alleged misconduct. Of the $1.5 million Drake received, the SEC alleges that $900,000 came from incentive-based compensation related to the fees paid by his clients.

Are You a Victim of Broker Misconduct?

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

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage 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 investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Lattanzio Denied Motion to Dismiss Indictment

Lattanzio Denied Motion to Dismiss Indictment

dkradmin

A motion by Nicholas Lattanzio to dismiss his indictment has been denied by a New Jersey federal judge. U.S. District Judge Kevin McNulty has ruled that FBI agents’ failure to preserve evidence did not warrant tossing out criminal charges against the hedge fund owner. Lattanzio filed the motion claiming prejudice and bad faith on behalf of the government.

Hedge Fund Owner Caught in Scheme

The defendant is accused of stealing $4 million from investors to bankroll an expensive lifestyle.

Lattanzio, 58, of Montclair, was arrested by FBI agents and charged with three counts of wire fraud and two counts of securities fraud. Prosecutors say that Lattanzio orchestrated a large-scale advance fee scheme out of his Black Diamond Capital Appreciation Fund, promising loans and deals in exchange for millions of dollars. Instead of investing the money, Lattanzio purchased a million-dollar home in Montclair, New Jersey and spent thousands of dollars on jewelry, vacations, and a luxury car.

Lattanzio is facing a maximum prison term of 20 years for each fraud count. We will continue to report as the case unfolds.

Did You Lose Money to Investment Fraud?

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

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage 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 investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.