Class Action

Ponzi Schemes

Latest News

8:00am - 5:00pm EST

Office Hours Monday - Friday

(574) 722-6676

Call Us For Free Consultation




Author: admin

The SEC and Finra Tighten Their Grip on Money Laundering Violations

Regulators are clamping down on money laundering violations among brokerdealers in firms of all sizes, regardless if they have the proper compliance resources or not. Brokerdealers of small and medium sized firms should brace themselves for increasing regulations involving their compliance practices. No more are Finra and the SEC targeting just the larger companies. Nick Fera, chief executive officer of Firm58 stated, “They’re getting more aggressive about things and it’s harder to operate a business in this environment.” Recent Money Laundering Violations and Why E.S. Financial Services based in Miami, agreed to a $1 million fine for charges of violating antimoney laundering rules. The SEC fined New...

Continue reading

Massachusetts Looks to Hammer Shady Brokers

The top 241 firms in Massachusetts with an above average number of reps with misconduct reports on their records are being audited. Secretary of the Commonwealth, William Galvin has requested the firms hand over their hiring information. The letter being sent out, commonly referred to as a “sweep”, is to help the governing body understand brokerdealer hiring policies and procedures. According to Galvin, the goal is to rid the commonwealth of the bad apples. He stated, “We need and expect the brokerdealer community to assist us by aggressively policing and monitoring their own workforce. This sweep is intended to establish how the industry is meeting this critical investor protection responsibility...

Continue reading

SEC Bans Broker For Fraud in Tobacco Scheme

Lee Weiss, a Massachusetts resident, was banned from the brokerage and investment industry for a fraud scheme revolving around tobacco. He claimed a French company could reduce the harmful effects of tobacco smoking, according to the SEC . Mr. Weiss and his firm Family Endowment Partners LLC , will pay approximately $8.4 million in fines back to the investors who he stole from. According to the SEC litigation announcement, they also have been ordered to pay $1.5 million in civil penalty. How the Fraud Scheme Worked The SEC alleged that from 2010 to 2012, Weiss and his firm fraudulently advised clients to invest more than $40 million in...

Continue reading

Ex-Stockbroker Gets Decade In Prison For Fake CD Scheme

By Alex Wolf of Law360, New York (June 24, 2016, 8:34 PM ET) -- A former stockbroker who pled guilty to fraud charges for bilking investors through fake certificates of deposit was ordered by a Pennsylvania federal court on Thursday to pay over $3 million in restitution and serve a 10-and-a-half-year sentence, according to the U.S. Securities and Exchange Commission. Malcolm Segal, who in February pled guilty to running a fraudulent scheme that stole more than $3.2 million from clients by selling fake CDs, faced up to 20 years in prison for committing mail and wire fraud. Segal, a resident of both...

Continue reading

Ex-MedCap Prez Gets 10 Years For $50M Investor Fraud

By Kurt Orzeck Law360, Los Angeles (June 15, 2016, 6:44 PM ET) -- A California federal judge has sentenced Medical Capital Holdings Inc.'s ex-president to serve more than 10 years in prison and pay nearly $40 million for allegedly operating a $50 million Ponzi scheme that defrauded hundreds of investors, federal prosecutors said Wednesday. U.S. District Judge David O. Carter on Monday issued a judgment ordering Joseph J. Lampariello, 62 — who also served as chief operating officer of the medical financial services company — to 10 years and one month in federal prison, as well as three years of supervised release. MedCap's...

Continue reading

Financial Adviser Charged with Fraud

The Securities and Exchange Commission (SEC) charged broker Louis Martin Blazer III with fraud, for stealing money from multiple professional athletes claiming to invest in movie projects. In all, Blazer defrauded five clients for approximately $2.35 million to help finance two films, “Sibling” and “Mafia the Movie,” stated the SEC. In one instance, Blazer allegedly stole $500,000 from the account of an athlete after he refused to invest in the projects. The client discovered the wrongdoing and threatened with a lawsuit. In a ponzi­like fashion, Blazer stole the money from one client to repay another client. Fraud Never Pays in the Long Run A statement from the SEC’s...

Continue reading

Old Memories Resurface in Scam

Multiple investors were cheated out of $131 million by buying stock in a worthless LED lighting distributor, by another former Stratton Oakmont broker. You all know about the old story involving the Long Island boiler room where investors got rich on scams. “Wolf of Wall Street” made this firm famous along with its infamous founder Jordan Belfort. Christopher Castaldo, a former Stratton Oakmont broker was charged with helping investors believe a company named ForceField Energy Inc. was worth multi millions. In actuality, it had “essentially no business operations and very little revenue, making the stock worthless,” according to Attorney Robert Capers statement. How the Scam was Ran The ringleader...

Continue reading

Variable Annuity Penalty Costs Record $25 Million

The Financial Industry Regulatory Authority (FINRA) levied a record $25 million penalty against MetLife Inc., who agreed to settle a bevy of abuses tied directly to variable annuities. $5 million of that fine, is due to be paid to customers for negligent misrepresentation and omissions, according to Finra statement. MetLife, the largest U.S. life insurer has neither accepted responsibility nor denied any wrongdoing. Finra’s chief of enforcement Brad Bennett, stated “Variable annuities are complex and expensive products that are routinely pitched to vulnerable investors as a key component of their retirement planning. Firms engaging in this business must ensure that the information on the costs and benefits of...

Continue reading

Money Laundering Scheme Ends With Finra Ban

James Van Doren was barred by Finra for deceiving creditors who were trying to recoup assets from a friend’s business. Van Doren, who was sentenced to 15 months in prison from related charges, was found guilty of laundering by helping a childhood friend conceal assets when financial agreements were not met. Laundering Scheme Unveiled Finra stated that Van Doren was given $30,000 in cash in a briefcase and a total of $732,000 over the course of three separate payments to help conceal debt money owed to creditors. He later on returned most of money while keeping some to help offset a few financial losses he incurred. Charges by...

Continue reading

NJ Couple Faces Prison, Civil Fine Over Alleged Ponzi Scheme

By Jeannie O'Sullivan of Law360, Jersey City (May 27, 2016, 2:23 PM ET) -- A New Jersey couple who purportedly owned a hedge fund was hit with criminal charges and a hefty civil penalty Friday for allegedly collecting money from two dozen investors and spending it on a lavish lifestyle as part of a Ponzi scheme that netted nearly $600,000 from victims. Husband and wife Alcibiades Cifuentes, 33, and Jennifer Wee Cifuentes, 35, of West New York, New Jersey, were scheduled to appear before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court Friday afternoon to answer to charges of...

Continue reading