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Ponzie Schemes, Broker Fraud, Negligence, & Misrepresentation
Lawsuits
Ponzi
Schemes are fraudulent investment scams that pay returns
to investors from their own money or money paid by
subsequent investors rather than from any actual profit
earned. Their name comes from Charles Ponzi, who duped
thousands of people into investing in a postage stamp
speculation scheme back in the 1920s. Ponzi thought he could
take advantage of differences between U.S. and foreign
currencies used to buy and sell international mail coupons.
Ponzi told investors that he could provide a 40% return in
just 90 days compared with 5% for bank savings accounts.
Ponzi was deluged with funds from investors, taking in $1
million during one three-hour period. Though a few early
investors were paid off to make the scheme look legitimate,
an investigation found that Ponzi had only purchased about
$30 worth of the international mail coupons. Now the term "Ponzi
Scheme" applies to investment scheme that
"rob-Peter-to-pay-Paul", money from new investors is used to
pay off earlier investors until the whole scheme collapses.
If you have
lost your life savings or a large amount of money through
a fraudulent investment scam which you were encouraged to
invest in by an investment broker, feel free to submit an
inquiry or
send an e-mail to Texas
Ponzi Scheme, Broker Fraud, and Investment Broker Negligence
Lawyer Jason Coomer.
He may be able to help you recover your losses or at least
obtain an accounting of the investments. He handles broker
fraud and broker negligence claims including careless
investment advice, deceptive investment advice, inadequate
risk warnings, churning, conflicts of interest, and other
unethical broker wrongful acts.
Stock Brokers Hold a Monopoly
on Stock Investments
It is an all too common scenario, a
person hires an investment firm or broker and follows their
investment
broker's recommendations, trusting this broker's expertise
with their life savings or a substantial amount of money.
Unfortunately, the stocks that the broker selected
plummet, the brokerage firm's CEO is all over the news defending his
company against allegations of securities fraud, and the
life savings of numerous investors are lost. Unfortunately,
tens of thousands of investors have been a victim of broker
and financial planner
fraud and negligence.
News Stories on Alleged Investment
Fraud and Negligence
"Andrew Cuomo, the New York Attorney
General, today charged the managing partner of Gabriel
Capital Group and former GMAC Financial Services chairman
with civil fraud. Mr Cuomo alleged that Mr Merkin: "profited
enormously from Madoff's scheme, reaping huge commissions
while investors lost all their money."
The complaint, filed in New York State
Supreme Court, said investors, including several prominent
charities and non-profit organisations, entrusted their
investments to Merkin. The hedge fund manager then steered
client money to Madoff without their permission, in exchange
for $470 million in fees, Mr Cuomo contends.
Mr Merkin's three funds are Ascot
Partners LP with Ascot Fund Ltd, Gabriel Capital Corp and
Ariel Fund Ltd." "Top
Money Manager Ezra Merkin Charged with Civil Fraud in Madoff
Case Andrew Cuomo, the New York Attorney General, Today
Charged the Former Chairman of GMAC Financial Services of
Civil Fraud", Times Online
By Susan Thompson, April 6, 2009.
"KPMG, PricewaterhouseCoopers, BDO
Seidman and McGladrey & Pullen all gave clean bills of
health to the numerous funds that invested with Bernard
Madoff and his asset-management firm. Clients say the large
accounting firms signed off on statements that said the
Madoff investment vehicles had billions of dollars in assets
as well as an unlikely track record showing years of
always-positive returns. The billions have vanished, and the
impressive returns now look to have been made up." "The
Madoff Fraud: How Culpable Were the Auditors?" Time
By Stephen Gandel, Wednesday, Dec. 17, 2008.
"A federal appeals court Tuesday denied a
claim from investors unable to get their money from accounts
connected to companies owned by troubled Texas billionaire
R. Allen Stanford."... "About 4,000 accounts containing
about $1.7 billion remain locked under the authority of a
Texas receiver appointed by a federal judge in Dallas."
"Federal regulators have accused Stanford of running an $8
billion investment fraud. He has denied the allegations.
...The receiver, Texas attorney Ralph Janvey, has already
approved the release of about 28,000 accounts. The remaining
4,000 accounts remain locked because Janvey said they
include money related to certificates of deposit at the
Stanford International Bank in Antigua that are central to
the government's fraud case against Stanford and his
companies." "Court
denies appeal to unlock Stanford accounts" 2009 The
Associated Press April 7, 2009, 5:43PM
Fraudulent Broker Claims
Recent decisions by the
Securities and Exchange Commission (SEC) imposed over $1.4
billion in penalties on several top investment banks,
brokerage firms, and brokers. As such, it is apparent
that you cannot always trust brokers to give you the
complete picture regarding
stocks, bonds, and other securities. If you feel that
your investment dealer or adviser has not been honest and
has caused you to suffer significant investment losses, your best bet to recover
your losses from investment fraud or
securities fraud losses is to speak to an experienced broker
fraud lawyer
regarding your stock fraud concerns.
In reviewing
stock broker fraud, an investor should know that
investing in the stock market can be a risky proposition.
Markets and investments can fluctuate and the majority of
investment losses result from such fluctuations rather than
from stock broker fraud or misconduct. However, stock fraud
does happen, and you should understand common forms of stock
broker misconduct. Some of the most common forms of broker
fraud are as follows:
-
Churning
-
Excessive Trading
-
Unsuitable Investments
-
Misrepresentation
-
Purchase of Unsuitable Securities
-
Investing in Variable
Annuities/Variable Universal Life Policies
-
Risky or negligent Retirement
Planning
-
Unauthorized Trading
-
Failure to Advise of Risky
Investments
-
Unauthorized Risk Profile Changes
Stock brokers are paid commissions for
the transactions they generate, which can encourage some
stock brokers to trade excessively or churn stocks for the
purpose of generating commissions instead of working for
their client's investment goals.
Churning is
essentially a form of excessive trading for the purpose of
generating commissions for the broker's benefit.
In addition to actually trading stocks
for their clients, stock brokers may also offer advice to
their clients on which stocks, mutual funds, etc. to buy.
This can be problematic if the broker encourages an investor
to purchase unsuitable investments or misrepresents the risk
or potential pay out of an investment. It also can be
problematic when a broker encourages the purchase of
unsuitable securities including variable annuities, variable
universal life policies, or viaticals. This is especially
true if the broker is encouraging investment with funds that
will be need for retirement.
Brokers are required to gain authority or
permission from their clients before they conduct any
transaction on the client's behalf. When brokers act without their
client's consent, this is considered
unauthorized trading. If
your broker is buying or selling stocks on your behalf
without your permission, or you believe that any of the
other above abuses have been committed, feel free to contact
Texas broker fraud lawyer, Jason Coomer for an investigation
of a broker fraud claim.
If your retirement
savings or other securities investments have
suffered substantial losses, generally fifty percent
(50%) or more, due to mismanagement, mishandling or
misconduct on the part of your broker or financial
professional, then you may want to speak to Jason
Coomer a Texas
investment fraud lawyer to determine if your broker
has committed fraud or negligence that has contributed to
your losses.
Unfortunately, with the pooling of large
amounts of money in pension funds, retirement funds, stocks,
mutual funds, bonds, derivatives, commercial real estate,
and other investments comes the danger of fraudulent investment scams
and broker negligence that
can take a person's life savings. If you have
lost your life savings or a large some of money through
misappropriation of funds, please feel free to
submit an
inquiry or
send an e-mail to Texas
broker fraud lawyer Jason Coomer.
He may be able to help you recover your losses or at least
obtain an accounting of the investments.
Austin
broker fraud Attorney, Jason Coomer helps investors
that have lost money through wrongful acts of majority
shareholders, corporate officers, and brokers. He reviews
investment strategies, accounting records, corporate actions, and investor trading; negotiates
settlements; and if
necessary files claims against negligent or fraudulent
brokers. Austin
Business Lawyer, Jason Coomer is an experienced business
litigation attorney that handles investment fraud,
shareholder actions,
commercial real estate
law, computer law, and
other business litigation.
His office frequently works with other professionals
including Houston Investment Fraud Lawyers, Dallas
Broker Fraud Lawyers, San Antonio Investment Fraud
Lawyers, and other Austin Investment Fraud Lawyers to
provide high end professional legal services at reasonable
prices.
Austin broker fraud lawyer, Jason S. Coomer, helps
business investors protect their assets and negotiate
with negligent brokers and brokers that have committed investment
fraud.
If you need an Austin Texas Broker Fraud attorney or an
Austin broker negligence lawyer to advise you on a Texas
investment fraud claim,
contact Austin Texas
Investment Fraud And Broker Negligence Lawyer Jason Coomer.
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