Category Archives: Securities Fraud
How “Affinity Fraud” Costs Investors Millions
Many securities scams can be classified as “affinity fraud.” As described by the U.S. Securities and Exchange Commission, this refers to cases where the scammers “prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups.” The scammers exploit this group affinity to lure members into financing largely… Read More »
SEC Charges Man With Promissory Note Fraud in Connection With Florida Property
On June 25, the U.S. Securities and Exchange Commission filed a civil lawsuit in Utah against Dwight Shane Baldwin, accusing him of securities fraud in connection with the sale of promissory notes backed by two defaulted real estate loans, including one in Seminole County, Florida. According to the SEC’s complaint, Baldwin acquired the defaulted… Read More »
Sarasota Ponzi Scheme’s Victims May Recover Interest
When a Ponzi scheme collapses, the repercussions can last for years as investors seek to recover the money they lost. One of the largest Ponzi schemes in Florida history involved the late Arthur Nadel, dubbed a “Mini-Madoff” in the press after his $168 million Ponzi scheme collapsed in 2009. Nadel ran a Sarasota-based hedge… Read More »
Feds Say Ex-Stockbroker Used Fictitious CD Sales to Buy Florida Condo
On July 1, the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office in Philadelphia filed civil and criminal charges, respectively, against Malcolm Segal, a former stockbroker accused of running a Ponzi scheme. These actions come after a November 2014 order by the Financial Industry Regulatory Authority which permanently barred Segal from working… Read More »
Boca Raton Pension Fund Class Action Against Manufacturer Proceeds
Publicly traded companies may not make false or misleading statements in order to manipulate their stock price. Federal securities law prohibits “any manipulative or deceptive device or contrivance.” U.S. Securities and Exchange Commission regulations more specifically ban “any untrue statement of a material fact” or any omission of material facts which render a company’s… Read More »
Investment Adviser Admits It Failed to Stop Ex-President from Stealing Client Funds
Investment advisers and other professionals who handle investor funds have a legal duty to ensure their employees and agents do not misappropriate those funds for personal use. An investment adviser registered with the U.S. Securities and Exchange Commission must “adopt and implement written policies and procedures reasonably designed to prevent” violations of federal securities… Read More »
Federal Judge Sentences Jacksonville Ponzi Scheme Operator Who Defrauded Retired Teachers
On June 12, a federal judge in Jacksonville sentenced the former operator of a Ponzi scheme to 10 years in prison. Anderson Scott Hall previously pleaded guilty to four felony charges of wire fraud, mail fraud and money laundering in late 2013. The United States Attorney’s Office in Jacksonville recommended the 10-year sentence, which… Read More »
Do You Know the Warning Signs of a Financial Scam?
Financial scammers often target retirees and the elderly. That it is why it is important to understand and identify the potential signs of financial fraud before you lose your life savings. The U.S. Securities and Exchange Commission recently issued an Investor Alert cautioning all seniors to look for five “red flags” which may indicate… Read More »
Do You Know Who You Are Investing With?
In a recent Investor Alert, the U.S. Securities and Exchange Commission warned, “In order to attract unsuspecting investors and gain their trust, fraudsters may boast about credentials they do not have.” Indeed, a key part of many securities fraud schemes is the operator’s ability to mislead investors about his or her expertise and track… Read More »
The Risks of Self-Directed Individual Retirement Accounts
Millions of Americans rely on Individual Retirement Accounts (IRAs) to save for their retirement. IRAs are a type of restricted savings account where the owner receives certain tax benefits. For example, in a traditional IRA, you may contribute a certain amount each year (up to $5,500 if you are under the age of 50)… Read More »