Blake Richards Fined for Investment Scam

Tuesday, September 2nd, 2014

FA-Mag.com  reports that a former LPL broker  has been order by a federal judge in Georgia to pay nearly $2 million in civil sanctions. Blake Richards was accused by the Securities and Exchange Commission (SEC) of operating a 4-year-long scam involving fictitious investments.

Several investors were allegedly elderly and entrusted Richards with their retirement. Richards, who ran his own brokerage office, purportedly persuaded clients to write checks, intended for securities products, directly to his business. He allegedly told clients that their funds would be invested in fixed-income assets, variable annuities and other securities, however, the money was reportedly never invested.

According to FA-Mag.com, LPL became aware of Richards questionable transactions when a colleague reported his alleged misconduct to the firm. As a result, LPL terminated Richards employment and notified securities regulators. The ruling against Roberts orders him to return $1.83 million to clients, including interest, and pay an $80,000 fine.

It is unclear if Roberts still has the money to repay investors. As such, The White Law Group is investigating the liability LPL Financial may have for Roberts actions.

Brokerage firms have a legal responsibility to adequately supervise the investment transactions of their registered representatives. When a representative, like Roberts, conducts business outside the scope of the firm, the act can be considered “selling away.” If a broker “sells away,” the brokerage firm may be liable for negligent supervision and responsible for investment losses.

If you suffered losses investing with Blake Richards and would like to speak to a securities attorney to discuss your litigation options, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on the firm, visit www.WhiteSecuritiesLaw.com.

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Financial Advisor Accused of Forgery

Tuesday, September 2nd, 2014

According to the Pocono Record, the Financial Industry Regulatory Authority (FINRA) has accused insurance broker, Anthony Diaz, of purchasing unsuitable life insurance investments on behalf of nearly 80 clients. Unfortunately, most of the investors were reportedly near retirement.

FINRA has alleged that Diaz falsified the net worth of some clients in order for those clients to meet minimum net worth requirements of more sophisticated investment products.

Additional allegations against Diaz include unsuitable investment recommendations and making “guarantees” to persuade potential clients. Furthermore, between March 2010 and April 2011, it is alleged that Diaz created approximately 71 false records and made unauthorized trades on behalf of clients.

When brokers deliberately deceive clients, engage in ruthless business tactics, and commit forgery they are likely in violation of several securities laws and FINRA regulations. If proven, the broker and the brokerage firm can be liable for investment losses.

According to BrokerCheck Diaz has worked for a number of broker dealers in Scotrun, Pennsylvania. He worked for Kovack Securities from 04/2011 – 08/2011, International Financial Solution from 08/2011 – 03/2012, and Sandlapper Securities from 03/2012 – 09/2012. Dias is currently registered with IBN Financial Service.

If you were a client of Anthony Diaz and would like to discus your ability to recover investment losses through FINRA dispute resolution, please call The White Law Group at (312)238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group, visit www.WhiteSecuritiesLaw.com.

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Indiana Broker, Lynn Simon, Pleads Guilty to Securities Fraud

Tuesday, August 26th, 2014

According to www.theindychannel.com, Indiana broker, Lynn A. Simon plead guilty to charges stemming from allegations that he defrauded investors of more than $1 million.

The report said that law enforcement agents began investigating Simon after his wife reported him missing. In addition the Indiana Secretary of State’s Office received complaints about Simon.

According to BrokerCheck, Simon was a registered representative with CDF Investments from 09/2008 – 05/2013. However, the report states he operated a satellite office under the name Financial Security Planning, as well as another business, The Insurance Shoppe.

Allegedly, Simon sold promissory notes through Financial Security Planning that were not registered with the Indiana States Securities Department as required by law.

Brokerage firms have a responsibility to monitor the business transactions of their employees, including transactions that occur outside of the firm. When a broker sells an investment product that is not approved by the firm, the act can be considered selling away. If a broker is convicted of selling away, the brokerage firm may be liable for negligent supervision and responsible for investment losses.

If you were a client of Lynn A. Simon and would like to discuss your potential to recover your losses, please call the securities attorney of The White Law Group at (312) 238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.

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DBSI President Sentenced to Federal Prison

Monday, August 25th, 2014

According to the Associated press, the president of DBSI, David Swenson, was sentence to 20 years in federal prison by District Judge B. Lynn Winmill. The company’s former legal counsel, Mark Ellison, was sentenced to five years.

“Winmill said Wednesday that he didn’t believe the defendants set out to defraud their clients, but he said they concealed the company’s financial problems and continued to accept new investments when they knew the company was failing.”

Earlier this year, Swenson and his two sons were convicted of 44 counts of securities fraud and 34 counts of wire fraud. Ellison was also convicted of 44 counts of securities fraud.

According to the report, before DBSI filed for bankruptcy the company managed 280 commercial buildings in 34 states. “More than $102 billion in claims were filed in bankruptcy court.”

Although a restitution amount has not been set, prosecutors have said they will seek at least $75 million.However, it is unclear if DBSI or the convicted executives have the money. As such, The White Law Group continues to investigate other avenues for investors to recover their losses, including looking at the brokerage firms that sold these investments.

Brokerage firms that sold DBSI had a fiduciary duty to make investment recommendations that were suitable for each individual investor. They also had an obligation to adequately disclose all the risks associated with the investment.

Furthermore, brokerage firms are expected to perform due diligence to ensure that the investment had a reasonable likelihood for success. Brokerage firms that failed to adhere to federal securities law and FINRA regulations can be liable for investment losses.

If you would like to discuss your litigation options to recover investment losses in DBSI, please call (312)238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

 

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TNP Attempts to Restructure Debt

Friday, August 22nd, 2014

Have you purchased investments with Thompson National Properties (TNP)? If so, the following information may be of value to you.

According to InvestmentNews,Tony Thompson and his company are offering to exchange TNP notes for a new stock venture. Last month, TNP pitched the idea to investors as part of a plan to restructure $50 million of debt and avoid potential bankruptcy.

According to the offering memorandum, InvestmentNews wrote, “TNP ‘has determined that it does not have the capacity to remain in business under its significant current debt load and believes it is in the best interest’ of TNP and the note holders to restructure the debt to exchange the notes for preferred equity.”

While this may provide investors an opportunity to get their money back, The White Law Group continues to investigate the liability some brokerage firms may have for recommending TNP notes to clients. Brokerage firms are required to perform adequate due diligence to ensure that the investment has a reasonable likelihood of success and that the investment is suitable for each individual. When brokerage firms fail to uphold their fiduciary duty or misrepresent an investment they may be liable for investment losses.

If you feel that your broker-dealer misrepresented your TNP investment, the securities attorneys of The White Law Group may be able to help you recover your losses. For a free consultation please call 312-238-9650.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group, visit www.WhiteSecuritiesLaw.com.

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