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Investor is Suing for Investment Losses Allegedly Caused by Carlos Hurtado and Raimundo Dias

Thu, 15 Sep 2022 12:12:22 GMT

Investor is Suing for Investment Losses Allegedly Caused by Carlos Hurtado and Raimundo Dias

The Riera Law Firm is currently investigating Carlos Hurtado of Weston, Florida, current Chairman and former CEO/President of NxGen Brands, Inc., and Raimundo Dias of Delray Beach, Florida (aka Ray Dias and Raymond Dias), former broker ( CRD#: 2614994 ), regarding their participation in the offering of NxGen Brands penny stocks. NxGen Brands owns and operates Leafywell that purports to be in the business of developing cannabinoid drugs for medical treatment.

Riera Law filed claims on behalf of an investor who was solicited by Hurtado and Dias to purchase shares of NxGen Brands. The claim filed alleges that Hurtado and Dias lured the investor to invest in NxGen Brands under false pretenses stating that the funds would be strictly used to pay for digital media. The claim also alleges that Hurtado and Dias misrepresented the speculative, high-risk and illiquid stock as a safe investment and dangled the promise of substantial wealth creation. Instead, the investment was illiquid, and suffered from significant conflicts of interest. The claim further alleges that Hurtado and Dias failed to disclose that penny stocks may trade infrequently – which means that it may be difficult to sell penny stock shares once you have them.

The claim alleges that Dias was the person in charge of Business Development at NxGen Brands, who was responsible for raising money through investors. Hurtado and Dias allegedly concealed Dias’ role at NxGen Brands and that Dias had violated the securities laws and regulations and was prohibited from offering or selling unregistered shares of securities.

In November 2016, the SEC concluded that Dias willfully violated the registration provisions of the Securities Act, Sections 5(a) and 5(c), which prohibit any person from using the mails or any means or instrumentality of interstate commerce to sell a security when a registration statement is not in effect for that security, or to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security when a registration statement has not been filed as to such security. As a result, the SEC ordered Respondent Dias to cease and desist from committing or causing any violations and any future violations of Sections 5(a) and (c) of the Securities Act. The SEC also ordered Dias to pay disgorgement and prejudgment interest of $42,499, and a civil money penalty of $45,000. See OTC Global Partners, LLC and Raimundo Dias, Securities Exchange Act Release No. 34-79300 (Nov. 14, 2016).

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“Investors are entitled to accurate and complete information about how proceeds from private offerings will be used, and the identity and intent of people who control the company trading on OTC Markets,” said Jorge Riera, Riera Law Firm Managing Partner and attorney. “We are investigating any other claims for others who may have suffered losses and will vigorously pursue those who dump microcap shares on an unsuspecting public.”

Investors who were sold risky investments may have a right to file a claim to recover their losses. The Riera Law Firm represents investors on a contingency fee basis (no fee if no recovery) and offers free and confidential claim reviews and consultations. The firm announced it is still investigating further claims and accepting new clients.

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We are committed to providing you a unique approach with the aim to meet your specific needs from the first meeting to the closing of the case. Our aggressive approach for preparation will put you in a better position to reach the best possible outcome.

Securities Experience – Our deep expertise and knowledge in securities law are unparalleled, and set us apart from other firms. We specialize in representing individuals and institutions confronting the most powerful interests.

Investor Focused – We’re laser focused on investor claims involving investment fraud, securities fraud and stockbroker misconduct. We strive to reach the best possible outcome for our clients in every case.

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Ready to Fight for You – We’re dedicated to vigorously advocating on behalf of our clients against the most powerful interests in the country to seek justice, no matter the challenge we will not back down. We stand ready to fight for you!

No Recovery, No Fees* – We primarily work on a contingency fee agreement. We believe our clients’ interest should be aligned with our interest, meaning if we are successful with your claim, we will be paid an agreed-upon percentage of the money recovered for you.

Free Case Evaluation – After you reach out to us, we will schedule a free one-on-one case evaluation. If Riera Law agrees to represent you, you will gain a true investor advocate and ally.

Dawson James Securities’ Former Broker, Kennister Daley, Allegedly Engaged in Broker Violations related to non-traded REITs

Tue, 24 May 2022 17:03:59 GMT

Dawson James Securities’ Former Broker, Kennister Daley, Allegedly Engaged in Broker Violations related to non-traded REITs

Kennister Ulesley Daley (Kennister Daley) is a Florida broker. Kennister Daley is currently registered with Allstate Financial Services, LLC. in Boynton Beach, Florida since March 2016. Mr. Daley was previously registered as a broker with Dawson James Securities, Inc. from 2014 to 2016.

According to FINRA’s BrokerCheck Report , Kennister Daley has at least two customer disputes. The most recent event includes an investment-related complaint containing allegations that Kennister Daley sold illiquid, non-traded Real Estate Investment Trusts (REITs), ignoring guidelines regarding such alternative investments.

According Mr. Daley’s record, one of his customers asserted damages of $100,000. The complaint alleged various claimsrelated to the sale of a non-traded REIT such as unsuitability, violation of fiduciary duty owed to customer, breach of contract, violations of securities law, and misrepresentations.

Florida-based law firm Riera Law specializes in handling investment fraud and securities fraud cases on a contingency basis, meaning our firm iscommitted to fight tirelessly on your behalf and receives a fee when we make a recovery of your investment losses for you.

If you suffered investment losses as a result of getting bad advice from Kennister Daley, you may have a legal claim and be entitled to recover your investment losses. In particular, if you were recommended to invest in a non-traded REIT and have suffered investment losses, you may be eligible for monetary recovery.The SEC and FINRA have both warned investors about the dangers of non-traded REITs investments. Non-traded REITs are complex products that involve certain risks and potential disadvantages that may not be apparent, or easy to understand. Non-traded REITs are illiquid and involve a high degree of risks. Non-traded REITs shares are not listed on a national exchange and are difficult to value because there is no market price readily available.

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Riera Law is committed to fighting on your behalf. It’s imperative that you take immediate action if you or your loved ones are concerned about possible broker misconduct and investment fraud, it could be serious. Learn more about how Riera Law can help you during a no-cost, no-obligation case review .

Why Choose Us

Client-Centered – We are fully committed to keeping our clients informed from start to finish. We are dedicated to providing each client the individual attention, respect and dignity they deserve.

Free Case Evaluation – After you reach out to us, we will schedule a free one-on-one case evaluation. If Riera Law agrees to represent you, you will gain a true investor advocate and ally.

GWG Holdings L Bonds Investment Value Tumbles

Wed, 09 Mar 2022 17:24:00 GMT

Investor Alert for GWG Holdings L Bonds

Investors who bought GWG Holdings, Inc. (“GWGH”) L Bond Units (“L Bonds”) may be entitled to recover losses. Emerson Equity LLC and a network of broker-dealers pitched GWG investment products to retail investors.

GWG Holdings’ revelation of its current inability to raise capital, recurring losses from operations, negative cash flows from operations, and negative implications related to the ongoing U.S. Securities and Exchange Commission (“SEC”) investigation has diminished investors’ expectations of future interest payments, thus reducing GWG Holdings’ value.

Dragged down by the bad news, GWG Holdings’ stock price has plummeted by 51% over the last few months. GWGH closed trading at $5.14 on March 8, 2022. GWGH shares traded as high as $10.51 on November 17, 2021.

Riera Law is investigating potential claims related to investments in GWG Holdings L Bonds. If you purchased L Bonds and have suffered losses, please contact the Securities Attorney of Riera Law for a FREE Consultation by filling out a Contact Form or by calling 305-204-9779 . Concerns about possible broker misconduct are serious, and we will aggressively pursue claims to recover your losses.

Series of Disappointing News

On August 1, 2021, GWG Holdings disclosed that it had to restate its financial statements because the financial information in previously filed financial reports were false or misleading. GWG Holdings restated its 2019 financial statements for the year ended December 31, 2019. As a result, investors relied on distorted financial information provided in the GWG’s 2019 financial statements and GWG’s June 2020 Prospectus to predict GWG’s future profitability and evaluate GWG’s value.

GWG Holdings disclosed in November 2021 that it has been the subject of an ongoing SEC investigation since at least October 2020. The SEC has been scrutinizing GWG Holdings’ L Bonds and accounting practices for more than one year. In response to several SEC subpoenas, GWG has turned over records to the SEC. GWG Holdings acknowledged that the SEC’s investigation could have a material adverse effect on its ability to raise capital and the value of its securities.

On January 10, 2022, GWG Holdings, Inc. (“GWGH”), once again decided to suspend the offer and sale of L Bonds. GWG had recently resumed its L Bond offering after they became current with their SEC filing obligations. From April 2021 to December 2022, GWG Holdings had suspended its L Bond offering because of their delay in filing quarterly and annual reports with the SEC.

In February 2022, GWGH’s President and CEO sent a letter to investors informing them that they decided to pause the sale of L Bonds indefinitely. GWG also told investors that they had decided to stop making the monthly L Bonds interest payments or maturity payments it owes investors. To make matters worse, GWG told investors they would let them know if they are able to make these cash payments in the future.

L Bonds are High-Risk Investments

GWG Holdings has sold approximately $1.5 billion L Bonds from January 2018 to January 2022. GWGH purportedly funded the purchase of life insurance policies in the secondary market through the sales of L Bonds. GWG Holdings promised to make interest payment on the L Bonds that ranged from 5.5% to 8.5% interest based on their maturity term.

L Bonds are corporate bonds and are considered a risky investment. L Bonds are non-traded and non-investment grade bonds, which are also called high-yield or speculative bonds. Investments in L Bonds are illiquid and have a high risk of default. If GWG Holdings defaults, there is a possibility that it will go bankrupt and investors could lose their entire investment.

GWG Holdings Lawsuits

Numerous lawsuits have been filed and regulatory matters have been initiated, alleging that GWG Holdings engaged in wrongdoing.

Investments in the L Bonds were offered and sold through Emerson Equity LLC and a network of broker-dealers who pitched the products to retail investors. Brokers (Financial Advisors) have a legal obligation to inform investors of the risks associated with an alternative investment, such as L Bonds, and to ensure that the investment was consistent with the client’s investment objectives and risk tolerance.

To the extent that the broker failed to abide by any of these duties, the customer may be entitled to a recovery of his or her investment losses.

FREE Consultation | 305-204-9779

Investors who suffered losses from GWG Holdings may have valid claims to recover those losses from the brokerage firms that sold the investments. If you are an investor who has suffered investment losses in GWG Holdings’ L Bond Units, it is imperative that you take action. Riera Law’s securities attorney has represented thousands of victims, and we will aggressively pursue claims to recover your losses.

Riera Law is investigating the sales practices of brokers who sold L Bonds, as well as the GWG Holdings’ investment products brokers recommended to investors. Concerns about possible broker misconduct are serious, and we are committed to fighting on your behalf. Contact Us today for a FREE Consultation. 305-204-9779 .

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World Choice Securities’ Former Broker, Thomas Stratton, Swiftly Removed from Securities Industry for Not Cooperating with FINRA’s Investigation into Alleged Wrongdoing

Thu, 18 Nov 2021 12:01:54 GMT

Thomas Stratton has 4 disclosure events

Thomas Ward Stratton (Thomas Stratton) was a Florida broker. Thomas Stratton was registered with World Choice Securities, Inc. in Melbourne, Florida from 2004 to 2021. According to FINRA’s BrokerCheck Report , Thomas Stratton has 4 disclosure events. One of the events included a regulatory action by FINRA imposing a permanent bar concerning allegations of “potential misuse of customer funds … and misrepresentations” related to non-disclosed Outside Business Activities.

According to his BrokerCheck Report, Thomas Stratton was also the subject of a notable customer complaint as follows:

July 2016 – Customer Dispute concerning Client allegations of “unsuitable management of accounts/over-concentration/Margin/Breach of Fiduciary Duty.”

Alleged Damages: $96,334.00. Status: Settled. Total Settlement: $50,000.00.

BrokerCheck by FINRA is a free tool to research the background and experience of financial brokers, advisers and firms. BrokerCheck gives you a snapshot of a broker's employment history, regulatory actions, and investment-related licensing information, arbitrations and complaints. To review Thomas Stratton’s report click here:

Thomas W. Stratton's BrokerCheck Report

The Financial Industry Regulatory Authority (FINRA) issued a Letter of Acceptance, Waiver, and Consent to Thomas Stratton stating that:

Pursuant to FINRA Rule 9216, Respondent Thomas W. Stratton submits this Letter of Acceptance, Waiver, and Consent (AWC) for the purpose of proposing a settlement of the alleged rule violations described below. This AWC is submitted on the condition that, if accepted, FINRA will not bring any future actions against Respondent alleging violations based on the same factual findings described in this AWC.

This matter originated from a tip to FINRA's Securities Helpline for Seniors.

Stratton refused to provide information and documents requested by FINRA pursuant to

FINRA Rule 8210.

A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to "observe high standards of commercial honor and just and equitable principles of trade."

Did You Invest with Thomas Stratton, former broker of World Choice Securities, Inc.?

If you have invested with Thomas Stratton, you should contact Riera Law immediately for a FREE Consultation.

Financial Advisors (Brokers) have a regulatory obligation to recommend only suitable investments based on the specific needs of the client, and a full understanding of the product and their risks. Brokerage firms (broker-dealers) are responsible for establishing a supervisory system to keep a close watch on broker’s sales activities and dealings with their clients to ensure that the financial advisors’ meet their regulatory obligations.

Investors can file FINRA arbitration claims against the brokers and hold them responsible for your losses. Broker-dealer firms are subject to the securities laws, and as such, they are responsible for conducting proper due diligence on investments recommended to investors, and brokers must make suitable recommendations.

If you invested with Thomas Stratton, you may have a potential securities arbitration claim involving Thomas Stratton sales activities and his employers may be liable for failure to properly supervise his activities.

When brokers abuse client accounts or conduct transactions that violate securities laws, such as making unsuitable investment recommendations, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

Contact Riera Law Firm Today for a FREE case evaluation at 305-204-9779 . We work on a contingency fee basis, meaning our firm is committed to fighting on your behalf and receives a fee Only if we recover money for you.

Get Your Free Case Evaluation

Put the power of a former SEC Prosecutor behind you! Riera Law is committed to fighting on your behalf. It’s imperative that you take immediate action if you or your loved ones are concerned about possible broker misconduct and investment fraud, it could be serious. Call us Today for a FREE Consultation at 305-204-9779 , or fill out our Contact Form on our website and tell us what happened.

What Are Private Placements?

Thu, 15 Jul 2021 11:14:05 GMT

Private Placements Under Regulation D

What are Private Placements?

Under the Securities Act of 1933 (Securities Act), any offering and selling of a security needs to be registered with the Securities and Exchange Commission (SEC), unless it qualifies for an exemption. R egulation D (Reg D) provides a number of exemptions from the registration requirements. Under Reg D, some companies are allowed to conduct private placements without having to register the offering with the SEC. Reg D provides an exemption only for the transactions in which the securities are offered or sold by the issuer, not for the securities themselves. Only verified accredited investors can participate in a private placement offering.

Recover Investment Losses Involving Fraudulent Private Placements

For help concerning U.S. investments in private placements , contact Riera Law at 305-204-9779 . Our team may be able to help you recover your investment losses from the fraudulent sale of private placements.

Who is an Accredited Investor?

Private placement offerings are limited to accredited investors who are presumed capable of assessing risks, making investment decisions and fending for themselves without the benefit of regulatory review and registration. Investors must meet the thresholds of an accredited investor, as defined in Rule 501 of Reg D , before they can purchase a private placement. An accredited investor, in the context of a natural person, includes anyone who:

earned income that exceeded $200,000 (or earned $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects to earn the same level of income in the current year, or
has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), or
holds in good standing a general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82).

Investments in Private Placements Involve a High Degree of Risk

Private placements are inherently risky investments. Most private placement investments are illiquid, meaning there are limited opportunities for investors to resell the securities. As a result, investors who purchase a private placement may find themselves holding the investment for an indefinite period of time. Private placements are also speculative in nature and have the potential to lose its entire value.

Besides the inherent risks of these investments, some private placement offerings have also been associated with fraud. Businesses raising capital through private placement offerings are not required to provide as much information to investors as public companies are required to provide under federal securities laws. Because private placements offerings are exempt from registration they are not reviewed by the SEC or FINRA, thus increasing the potential for fraud. Investors should be cautious when investing in a private placement and be vigilant for red flags or misleading statements forbidden by FINRA Rule 2210(d) , such as:

promissory statements or claims such as assertions about the likelihood of a future public offering of the issuer,
claims about the future success of the issuer’s new or untried business model,
inaccurate or misleading assertions concerning the regulation or relative risk of the offering, or
predictions or projections of investment performance

Private placements often present false or misleading information regarding the underlying offering, which could result in significant losses to investors.

Brokerage Firm’s Due Diligence Obligations

FINRA Regulatory Notice 10-22 provides brokers and brokerage firms guidance regarding their obligation to conduct a reasonable inquiry on private placement offerings prior to recommending them to investor. As part of its inquiry, brokerage firms need to review the private placement memorandum (PPM) including any relevant offering documentation, and independently verify, research or analyze material aspects of the offerings.

Generally, a brokerage firm “ may not rely blindly upon the issuer for information concerning a company .” Brokerage firms also cannot rely on the information provided by the company and its counsel instead of conducting its own reasonable investigation.

Given the risks involved in private placements, FINRA expects firms to establish and maintain adequate supervisory systems to conduct reasonable investigations into private placements to ensure that the investments are suitable for customers and complies with the antifraud provisions or FINRA rules.

Even though investors may be sophisticated and knowledgeable, brokerage firms continue to have the duty to investigate.

Contact Riera Law if You Were Defrauded in a Private Placement Investment

Contact Riera Law at 305-204-9779 to discuss your fraudulent matter related to a private placement investment. Our team may be able to help pursue a FINRA arbitration claim to recover your investment losses.

HOSPITALITY INVESTORS TRUST (HIT REIT) BANKRUPTCY PLAN LEAVE INVESTORS WITH SIGNIFICANT INVESTMENT LOSSES

Wed, 07 Jul 2021 18:59:51 GMT

Bankruptcy filing leaves investors with big investment losses.

Florida-based Riera Law Firm represents investors who were solicited by brokerage firms to invest in non-traded REITs, such as Hospitality Investors Trust, Inc. Brokers promoted Hospitality Investors Trust as stable principal preservation and high yield investments, while overlooking the lack of liquidity, high fees and risks.

Hospitality Investors Trust, Inc. (HIT) , formerly known as American Realty Capital Hospitality Trust, Inc., is a non-traded real estate investment trust (REIT). On July 1, 2021, announced that the United States Bankruptcy Court for the District of Delaware (Case No. 21-10831 (CTG)) confirmed its plan for reorganization. In light of the reorganization, the existing shares of Hospitality Investors Trust’s common stock were cancelled and now investors' shares are likely worthless.

Non-traded REITs Carry Numerous Risks

The SEC and FINRA have both warned investors about the dangers of non-traded REITs investments. Non-traded REITs are complex products that involve certain risks and potential disadvantages that may not be apparent, or easy to understand. Non-traded REITs are illiquid and involve a high degree of risks. Non-traded REITs shares are not listed on a national exchange and are difficult to value because there is no market price readily available. Instead, their shares are sold directly and have high-up front fees of approximately 15% of the investment, which lowers the value and return of your investment. Distributions paid to investors are not guaranteed, they can be suspended for a period of time or halted altogether. While a non-traded REIT may allow investors to redeem their shares at a discount, they can restrict or terminate early redemption of shares. Non-traded REITs are high commission investment products, which can lead to marketing these investments to unsuitable investors.

The Value of Hospitality Investors Trust’s Common Stock Plummeted

Since its inception, Hospitality Investors Trust had significant fluctuations in its per-share price. Hospitality Investors Trust was initially sold at $25.00 per share. By December 31, 2019, the value of HIT’s stock plummeted to an estimated net asset value of $8.35, a decline of approximately 67%. Under FINRA rules non-traded REITs, such as Hospitality Investors Trust, need to disclose an updated estimated net asset value per share on an annual basis. Hospitality Investors Trust did not report its 2020 estimated net asset value.

From March 2021 to April 2021, Hospitality Investors Trust shares selling prices in a secondary auction market ranged from $0.35 per share to $0.46 per share.

Investors of Hospitality Investors Trust Options for Recovery of Losses

Investors need to consider their options given that the bankruptcy of Hospitality Investors Trust likely caused the value of their investment in the non-traded REIT to become worthless. Investors can file FINRA arbitration claims against the brokers and hold them responsible for your losses. Broker-dealer firms are subject to the securities laws, and as such, they are responsible for conducting proper due diligence on investments recommended to investors, and brokers must make suitable recommendations.

If you invested in the Hospitality Investors Trust non-traded REIT and have suffered investment losses, you may be eligible for monetary recovery. Please contact Riera Law Firm at 305-204-9779 for a free case evaluation. We work on a contingency fee basis, meaning our firm receives a fee only if we recover money for you.

NORTHSTAR FINANCIAL SERVICES (BERMUDA) INVESTORS HAVE LEGAL MEANS TO RECOVER THEIR LOSSES

Tue, 06 Jul 2021 19:15:09 GMT

Investment Fraud Recovery with Riera Law

Florida-based Riera Law Firm represents investors who have suffered financial harm at the hands of brokers or financial advisors that sold them fraudulent investment products.

Brokers usually play an important role in helping investors make sound investment decisions. But when brokers are not upfront and sell investment products that are not legitimate they put investors at great risk of financial harm.

Northstar Financial Services (Bermuda), a s a segregated accounts company, was regulated by the Bermuda Monetary Authority. Northstar Financial Services sold investment products to affluent international investors through broker-dealers in the United States. Northstar Financial Services was known for its fixed-rate investment products and variable annuities products that were issued under a Bermuda trust structure to purportedly to facilitate wealth transfer and estate planning at no additional cost. Northstar Financial Services touted the benefits of a Bermuda trust structure, which included financial security, as well as segregated account protection, generous liquidity terms, a variety of commitment periods, annual free withdrawal privileges, and the trust income was not subject to Bermuda tax.

Last year, Greg Lindberg , the owner of Northstar Financial Services (Bermuda) was convicted of federal bribery charges and wire fraud. A few months later, after determining that it was cash flow insolvent Northstar Financial Services (Bermuda) filed for bankruptcy . In March 2021, the Supreme Court of Bermuda issued a winding up order against Northstar Financial Services (Bermuda) .

Northstar Financial Services (Bermuda) recently informed investors that they had discontinued payments of any redemption requests at this time. Northstar Financial Services (Bermuda) also disclosed that it had identified an issue concerning the designation of segregated accounts. The present view, subject to court approval, is that investors holding variable investment products are segregated account holders and will be entitled to make a secured claim against the client money pool held within that specific segregated account. While investors with investments made with fund proceeds or holding fixed investment products are considered non-segregated accounts and their claims will be unsecured.

At least two brokerage firms in Florida are known to have sold Northstar investment products, Ocean Financial Services, LLC and SunTrust Investment Services, Inc. (changed its name to Truist Investment Services, Inc.). Brokers and financial advisors at brokerage firms offered a range of Northstar global investment products to high-net worth investors outside of the U.S. including:

Global Advantage
Global Advantage Elite
Global Advantage Plus
Global Advantage Select
Global Equity Protect
Global Index Protect
Global Interest Accumulator
Global VIP
Global VIP Elite

Risks Related to Variable Annuities

Variable annuities involve investment risks, just like mutual funds. If the investment choices the investor selects for the variable annuity performs poorly, the investor can lose money including potential loss of the original investment. Investors pay significant charges when they invest in a variable annuity. Often, investors do not understand all the charges before investing. These charges reduce the value of your account and the return on your investment. Most variable annuities typically have high fees and charges that may include deductions from purchase payments, surrender fees, and significant ongoing fees and expenses associated with owning a contract.

The Securities and Exchange Commission’s (SEC) has issued some warnings to investor’s about variable annuities , such as:

Variable annuities are not suitable for meeting short-term goals.
Variable annuities involve investment risks just like mutual funds do. If the investment choices you selected for the variable annuity perform poorly, you could lose money.
Contract fees may go towards your financial professional’s compensation. That means they may receive higher compensation for selling some contracts or investment products than for others.

Despite these many warnings, brokers frequently push variable annuity products to enrich themselves at the investor’s expense.

How Can You Recover Your Investment Losses?

Broker-dealer firms are subject to the securities laws, and as such, they are responsible for conducting proper due diligence on investments recommended to investors, and brokers must make suitable recommendations . Frequently, investors making these types of claims involve issues related to the level of due diligence that was conducted by the firm and the financial advisor, and whether material risks were properly disclosed to the investor.

Brokerage firms are responsible for properly supervising brokers they employ, broker’s transaction involving the sale of investment products, and the investor’s account. In cases where negligence or impropriety can be established, investors are able to file a claim to recover their investment losses. Under these circumstances, investors can file FINRA arbitration claims against the brokers alleging negligence, misrepresentation, breach of contract, unjust enrichment and negligent supervision . If investor’s claims are successful they can recover damages and interest, and in some cases punitive damages, attorney’s fees, and any further relief the arbitration panel deems proper.

If you invested with a broker or financial advisor and suffered investment losses due to a brokerage firm’s failure to supervise its broker, you may be able to pursue a claim in FINRA arbitration. Please contact Riera Law Firm at 305-204-9779 for a free case evaluation. We work on a contingency fee basis, meaning our firm receives a fee only if we recover money for you.

What is Bond Fraud and How to Recover Your Losses

Thu, 20 May 2021 13:31:14 GMT

Bonds, Like All Investments, Can Be Used to Commit Fraud on Investors

Investments can take shape in many different ways; while many people refer to the securities trading via the stock market, stocks are not the only option to consider when entering into trading opportunities. Typically, bonds are presented as safe trading alternatives to stocks, but bond fraud is a real risk to investors who rely on stockbrokers for insights and opportunities. While bonds and fixed-income investments can be the cornerstones of well-diversified portfolios, some investors use them as opportunities to exploit you for financial gain.

What are bonds?

Bonds are debts which governments and corporations sell to investors in order to raise their bottom-line capital. Bonds are most frequently broken down into four categories:

Corporate bonds: Bonds issued by a company in order to generate funds

Federal bonds: Bonds sold by a federal government, such as U.S. Treasury bills and U.S. savings bonds

Municipal bonds: Bonds issued by states, cities or other government entities to fund civic projects

Agency bonds: Bonds issued by government agencies or government-sponsored enterprises

Agency bonds include mortgage-backed securities like those offered by the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae).

Despite the general umbrellas that can describe bonds, each of these categories can be further broken down into more specific descriptions. Similarly, on the fringe of what may be considered viable securities options, are junk bonds. These bonds are incredibly high-risk, but may also offer high rewards in some circumstances. Junk bonds move rapidly with stocks and offer minimal downside protection in the face of market losses. Unless you are in a position to hedge your bets on such a risk, an advisor should not suggest these bonds.

What is bond fraud?

Despite their relative security, bonds are like stocks in that they are subject to risks. While most investors are privy to potential risks of investments, they sometimes do not know of the specific risks associated with specific investment opportunities; it is a broker’s responsibility to provide investors with knowledge of those risks.

One major risk opportunity for brokers to commit fraud via bonds is the opportunity for the broker to not provide adequate information about specific risks associated with potential bond trades. Junk bonds are often misrepresented as “high-yield bonds” or other vague terms which help brokers avoid divulging the true breadth of the risk associated with the bond.

Another fraudulent practice which brokers perform involves concealing charges related to the bond of the fund against which the bond is leveraged. Most bonds do not have market prices which are accessible by investors, making it simple for fraudulent brokers to mark-up or mark-down their cost-per-transaction involving a bond, increasing their profits relative to the trades which the investor approves.

As with all securities trading situations, every potential bond trade comes with inherent risks. As with all securities transactions, it is your broker’s responsibility to provide you with full information about those risks. For example, even in situations where the bond itself looks like a stable investment, the entity offering the bond for trade may be a financial flightrisk. If a business is likely to go under or otherwise plummet in their financial security, your bond may not be issued back to you at a meaningful value. It is the obligation of that broker to be aware of these risks and to fully divulge those risks to you before asking you to approve of the transaction.

It is unfortunate that brokers do not always act within their obligations to you. While they are supposed to be your reliable agent who helps assure your financial security, sometimes you need a team behind you to make it right when you have been wronged by a broker or brokerage. The legal experts at Riera Law will be that team. With decades of experience in securities litigation behind you, Riera Law is focused on getting you the reparations you deserve after being defrauded by an investment adviser. To begin your path to regaining what you’ve lost, contact us today.

Florida Ponzi Scheme Lawyer

Thu, 22 Apr 2021 11:30:36 GMT

Ponzi Schemes Can Cheat You Out of Your Life's Investments

How Ponzi Schemes Work

A Ponzi scheme is an investment scam that involves the payment of supposed profits to earlier investors using funds collected from newer investors. Investors are misled into believing they are receiving returns on their investments, when in reality the money is from another investor who has been duped. The Ponzi payments made are instrumental in keeping the scheme afloat creating the illusion that the investment is successful and legitimate when in reality the wrongdoers are syphoning investor funds. Ponzi schemes inevitably come to a crashing halt once the flow of new investor money stops and the perpetrators are not able to make the Ponzi payments to earlier investors, leaving all remaining investors without their hard-earned money.

Classic Warning Signs of Ponzi Schemes

Many successful, financially intelligent people fall prey to Ponzi schemes . Victims lose a great deal of money in the investment scam because they misplace their trust in unscrupulous promoters. Fraudsters operating a Ponzi scheme often make empty promises to convince investors to trust them with their hard-earned money. Scam artists exploit the trust and friendship that exists in tight-knit groups, such as seniors and members of a religious or ethnic community. The fraudsters involved in affinity scams are often trusted members of the community. Investors tend to be blinded when a con artist comes across as likeable or trustworthy.

In uncertain times, fraudsters are increasingly targeting the elderly for Ponzi schemes . With many seniors in isolation for their own safety they are more vulnerable to financial abuse because they do not have anyone to ask for input or advice about an investment. Wrongdoers often make empty promises to investors to convince them to invest their hard-earned money. Here are some of the hallmark warning signs of Ponzi schemes to look out for when considering potential investment opportunities:

Promises of Low Risk for High Returns: Watch out for alluring investments that promise a guaranteed high return with limited or no risk. Scammers will offer guaranteed returns to draw investors. Don’t be deceived. Legitimate investments have a tendency to fluctuate in value over time. Any investment opportunity with the potential for higher returns typically comes with greater risk – and that means you might lose all of the money you invested.

High Pressure Sales Tactics: Be wary of sales practices that pressure you to decide right away. Don’t let anyone rush you. Take your time deciding whether an investment is right for you.

Unregistered Investment or Unlicensed sellers: Scams often involve unregistered companies. Investors should check whether the investment is registered with the Florida’s Office of Financial Regulation or the SEC. Registered investments provide key information to help investors evaluate a company before making an investment decision. Most Ponzi Schemes also involve an unlicensed individual or firm. Even if an investment promoter comes across as trustworthy, check out whether the person touting the investment is currently licensed or registered, or has been suspended.

Unusual Business or Complex Strategies: Beware of an investment that is hard to understand. Make sure you understand the investment, how they are investing your money, and how your returns are calculated. Fraudsters count on on the fact that many investors simply do not bother to ask questions before they invest.

Issues with Investor Statements: Be wary if you do not receive account statements with information about your investment or if the statements have inconsistencies or errors. Make sure the returns on your statements match up with promises made. Ponzi scheme organizers often create fictitious investor statements to hide the misuse of the money and lead investors to believe their investments are growing.

Payment Delays: Be suspicious of delays in receiving a payment or difficulty withdrawing funds from your investment. Ponzi schemes can continue to operate as long as there is continued cash flow from new investors and existing investors do not request to cash out. To keep the Ponzi scheme from collapsing, promoters often encourage investors to roll over their money by offering even higher returns for staying put.

Bernie Madoff, mastermind of the nation’s biggest investment fraud, dies at 82

Trust Riera Law to Recover Your Losses

Riera Law represents victims of Ponzi schemes who were scammed through a trusted stockbroker or financial advisor who works for a securities brokerage firm. While falling victim to a Ponzi scheme can be devastating and leave you feeling helpless, you have no reason to feel embarrassed. Many highly educated and affluent people fall for Ponzi scheme scams.

If you have been scammed, it is crucial to take legal action as soon as possible to recover your losses and to prevent others from being victimized. If you have been fraudulently victimized in a Ponzi scheme, we can assist you. Contact us today, and let Riera Law fight for you to recoup your losses!

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