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James Couture Investigation in the Wake of Fraud AllegationsThe Goldman Scarlato & Penny PC law firm attorneys have launched an investigation into previously registered broker James Couture’s conduct in the wake of allegations of engaging in a scheme to misappropriate $2.9 million from his clients, as stated in the SEC’s Complaint, under review by attorney Alan Rosca. Investor rights attorney Alan Rosa and his colleagues of the Goldman Scarlato & Penny PC law firm are investigating conduct related to fraud allegations filed against James Couture and his alleged misappropriation of client funds. Interested investors who are concerned about their investment with Couture may call attorney Rosca or his colleagues at 888-998-0530 for a free case evaluation and discussion of potential options, or to provide any useful information to assist the James Couture investigation.

The SEC Sued James Couture for Misappropriation of $2.9M in Client Funds

The Securities and Exchange Commission (SEC) filed a complaint against James Couture alleging he violated his fiduciary duty to his clients by engaging a deceptive scheme to misappropriate approximately $2.9 million from his advisory clients, as stated in the complaint.

The James Couture investigation revealed that as part of his alleged scheme to defraud, he allegedly advised his clients to sell portions of their securities holdings to fund large money transfers to an entity. Couture’s clients were allegedly unaware that the entity was owned and controlled by Couture, as stated in the Complaint.

The Complaint further alleges James Couture falsely informed his clients that their proceeds would be reinvested for their own financial benefit but, he allegedly used the client’s funds for his own use and benefit. Furthermore, Couture allegedly misappropriated that he reinvested his client’s money by providing his clients with fabricated documents showing securities transactions that never happened, nonexistent investments, and earnings that were never received by his clients.

As alleged in the Complaint, Couture allegedly used assets from previous advisory clients to fund withdrawal requests from other clients. To hide his alleged scheme, James Couture allegedly transferred client money through a web of third-party administrator accounts, as stated in the SEC Complaint.

As a result of Couture’s alleged misconduct, he has been sued by the SEC and criminally charged with fraud. Investor rights attorney Alan Rosca is investigating conduct related to James Couture’s alleged misappropriation of client’s funds.

Concerned investors may call 888-998-0530, send an email to rosca@lawgsp.com, or complete the contact form on this webpage for a free case evaluation and discussion of potential options.

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    FINRA Barred James Kenneth Couture for Alleged Refusal to Produce Requested Documents and Information

    FINRA sent Couture multiple requests for documents and information in connection to their investigation surrounding his alleged terminations from his FINRA member firm, according to FINRA’s Letter of Acceptance, Waiver and Consent (AWC).

    The AWC further alleges Couture’s firm submitted a Form U5 terminating his registration and alleging that he altered identifying information, account balances, and distributions in customer account statements. In addition to allegations of maintaining comingled customer funds and using an unapproved email address.

    FINRA allegedly received a response from James Kenneth Couture in August 2020 but the response was allegedly incomplete. In September 2020, FINRA was informed that Couture allegedly decided to cease complying with FINRA’s request for information and documents.

    As a result of James Couture’s alleged misappropriation of client funds, and without admitting or denying the findings, Couture consented to FINRA’s sanction including a bar from associating with any FINRA member firm in all capacities and solely for the purposes of the proceeding brought by or on behalf of FINRA, prior to a hearing and without an adjudication of any issue of law or fact.

    Concerned investors may contact attorney Rosca for a free case evaluation and discussion of potential options. Investors may call 888-998-0530, send an email to rosca@lawgsp.com, or complete the contact form on this webpage.

    James Couture Was Registered with FINRA for 18 Years

    According to Couture’s FINRA Brokercheck page, he was registered with FINRA since 2001 and switched employers four times. He was previously registered with LPL Financial in Worchester, MA from February 2009 until July 2020. He was allegedly discharged from the firm on allegations of altered identifying information, account balances and distributions in customer account statement, maintaining comingled customer funds, and using an unapproved email address, as stated on his Brokercheck page.

    James Couture investigation also shows he was registered with Lincoln Financial Securities Corporation in Worchester, MA from February 2006 until February 2009, as stated on his Brokercheck page. In addition, he previously worked for two firms in New York between 2001 and 2006, including New England Securities and Morgan Stanley DW.

    Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints and / or allegations mentioned in this article, unless otherwise indicated.

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      Investor Rights Lawyers Are Investigating Fraud Allegations Against James Couture

      The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or broker misconduct and is currently investigating conduct related to fraud allegations filed against James Couture and his misappropriation of client funds.

      The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

      Concerned James Couture investors may contact attorney Alan Rosca, or his colleagues for a free no-obligation case evaluation and discussion of potential options. Investors may call 888-998-0530, send an email to rosca@lawgsp.com, or complete the contact form on this webpage.

      Visit https://investorlawyers.org/james-couture-investor-center/ for more case related information and important disclosures.

      Tyler Tysdal Investor Update Investors in Cobalt Sports Capital File Legal Claims to Seek Compensation for Their LossesSecurities attorneys at Goldman Scarlato & Penny P.C. law firm (“GSP”) have recently announced the filing of legal claims on behalf of investors in Cobalt Sports Capital, a company co-founded and promoted by Tyler Tysdal.  The case was filed in the AAA Arbitration against an investment advisory firm that recruited those investors to invest in Cobalt.

      In their statement of claims, the Tyler Tysdal / Cobalt investors allege that the investment advisory firm failed to conduct adequate due diligence as to Cobalt before recommending that investment opportunity to its customers, and that subsequently, after Cobalt was put into receivership, the firm failed to inform those investors of its own liability in connection with their Cobalt investments.

      The investors are seeking compensation for their Cobalt-related losses from that investment advisory firm and one of its principals.

      Concerned Cobalt Sports Capital investors who would like to learn more about the case, as well as individuals with knowledge of the facts related to Cobalt may contact the GSP securities attorneys Alan Rosca, Paul Scarlato, or Shawn Rexroad for a free, no-obligation discussion or to provide information, toll free at 888-998-0530 or rosca@lawgsp.com.

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        Tyler Tysdal and His Associate Sanctioned by the SEC

        An administrative proceeding (no. 3-19463) announced by the Securities and Exchange Commission (“SEC”) via a press release in September 2019 charged Colorado resident Tyler Tysdal with multiple fraudulent schemes. According to the SEC, the order settled fraud charges against Tysdal and his associate in connection to allegedly defrauding Cobalt Sports Capital investors. The SEC order also found that Tysdal and his associate defrauded investors in Impact Opportunities Fund and investors in the TitleCard Capital 1Fund, L.P. private fund.

        Tysdal and his associate did not deny the facts in the SEC’s Order, without admitting them, and consented to the entry of a cease-and-desist order. In addition, the SEC reported that Tyler Tysdal consented to “a three-year collateral associational bar and an investment company bar“. Finally, the order required Tysdal and his associate to pay disgorgement, prejudgment interest, and civil penalties.

        Tyler Tysdal Criminally Indicted in Two Separate Cases

        Shortly following the SEC sanctions, a criminal indictment was filed by the Denver District Attorney’s Office in December 2019 against Tysdal.

        The 2019 Tysdal indictment alleges that Tyler Tysdal and an associate committed 64 counts of securities fraud, in addition to one count of conspiracy to commit securities fraud, one count of theft and one count of violation of the Colorado Organized Crime Control Act. Similar to the SEC’s allegations, the Colorado prosecutors accused Tyler Tysdal of misusing investor funds.

        One year later, Tyler Tysdal was separately charged with three additional counts of securities fraud according to a separate 2020 Tysdal Indictment filed with the Denver District Court, involving a different investment. As of the date of this announcement, both criminal cases are pending and no judgment or finding of liability has been entered as to Tysdal or his associate.

        Investors interested to review the indictments can obtain them from the Denver District Court or contact attorneys Alan Rosca or Shawn Rexroad at rosca@lawgsp.com or rexroad@lawgsp.com for copies.

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          Tyler Tysdal Investors May Have Options

          Over the last several months, the GSP securities attorneys have been in touch with Tyler Tysdal investors and have gathered a considerable volume of records. Individuals with knowledge of facts surrounding Cobalt Sports Capital and/or Tysdal investors who would like to learn more about the pending legal proceedings may reach out to us toll free at 888-998-0530, via email at rosca@lawgsp.com or rexroad@lawgsp.com, or leave a message via the contact forms on this page.

          The securities attorneys at GSP bring decades of combined experience in investigating and litigating investment fraud and misconduct cases. They typically work on contingency fee basis, advance all case expenses and only get reimbursed for their fees and expenses if they obtain compensation for their clients.

          As of the date of this announcement there has not been a finding of liability as to the matters and / or allegations mentioned in this article, unless otherwise indicated. There are no other defendants or respondents in the Cobalt investors’ pending case, other than those referenced in this article.

          Visit https://investorlawyers.org/tysdal-investor-center/ for more case related information and important disclosures.

          Ashley Woodard, Pamela Lizanich, David Wall, and Ronald Metcalf Jr. – Unsuitable Investment Recommendation and Failure to Supervise AllegationsAshley Woodard, Pamela Lizanich, David Wall, and Ronald Metcalf Jr. are South Carolina based brokers and investment advisers who have been named defendants in the same pending customer disputes initiated against them on allegations including unsuitability of investment recommendations and failure to supervise among others. This is according to an investigation by investor lawyer Alan Rosca.

          Investor lawyers at the Goldman Scarlato & Penny PC law firm including Alan Rosca are investigating conduct related to the pending customer disputes initiated against Ashley Woodard, Pamela Lizanich, David Wall, and Ronald Metcalf Jr. on allegations including unsuitable investment recommendations and failure to supervise.

          All four brokers were, or are currently registered with Voya Financial Advisors.

          Ashley Woodard left Voya in February 2017 to briefly join IFS Securities in Greenville, South Carolina. Several months later, in December 2017 Woodard switched to NYLife Securities, where he was registered until October 2020.

          Pamela Lizanich moved from Voya Financial to IFS Securities in March 2017. She was with IFS until she became registered with NYLife SecuritiesLizanich has been with the firm since July 2018.

          David Ralph Wall was registered with Voya Financial between June 2013 and March 2021. In March 2021 he was discharged from Voya Financial Advisors for allegedly failing to perform an adequate review of account profiles for certain customers who purchased alternative investments.

          Ronald Metcalf Jr. is currently registered with Voya Financial Advisors. He has been registered with the firm since December 1986.

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            Defendants in The Same Pending Customer Disputes

            Investor lawyer Alan Rosca reviewed publicly available information and found that the four brokers and investment advisers named above were jointly named defendants in various pending customer disputes.

            According to the reports on Ashley Woodard, Pamela Lizanich, David Wall, and Ronald Metcalf Jr.’s FINRA Brokercheck pages (CRD# 4703144, CRD#: 5742762, CRD#: 1651874, and CRD#: 1280602), in July 2020 two customers filed consecutive FINRA disputes under numbers 20-02110 and 20-02111, each requesting $5,000,000 in alleged damages.

            In FINRA case no. 20-02110, the claimants are alleging that while they were registered with Voya Financial, the brokers recommended unsuitable and illiquid alterative investments concerning Real Estate Securities investment products.

            In FINRA case no. 20-02111, the customers made similar allegations concerning Variable Annuity and Unit Investment Trust investment products. Both cases show as pending as to all four brokers as of the date of this article.

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              In a case filed in March 2021, a customer alleged that while they were registered with Voya Financial, David Wall and Ashley Woodard recommended risky and unsuitable alternative investments. The case was filed with FINRA under no. 21-00718 and the customer is requesting $50,000 in alleged damages. As of the date of this article the dispute is reported as pending.

              In another customer dispute initiated in July 2021, filed under FINRA case no. 20-02101, the customer alleged that while they were registered with Voya Financial, both Ashley Woodard and Pamela Lizanich disregarded the interests of their clients and steered them into multiple illiquid and unsuitable private placement investments. Ronald Metcalf Jr. is alleged to have failed in his duty to adequately supervise both Ashley Woodard and Pamela Lizanich. In this dispute, the client was requesting between $50,000 and $100,000 in damages and settled for $152,500.

              In November 2019, under FINRA case no. 19-03304, a customer filed a complaint alleging that Ashley Woodard and Pamela Lizanich recommended illiquid and unsuitable alternative invetsments. Ronald Metcalf Jr. allegedly failed to supervise Woodard and Lizanich. The customer requested between $100,000 and $500,000 in alleged damages, and in October 2020 reportedly settled for $80,000.

              In October 2019 another FINRA case involving Woodard, Lizanich, and Metcalf was filed under case no. 19-02999. The customers alleged that Ashley Woodard and Pamela Lizanich recommended various alternative, illiquid and unsuitable securities. The client also alleged that Ronald Metcalf Jr. failed to adequately supervise the brokers who sold unsuitable investments. The client in this dispute was seeking to recover $100,000 in damages but the dispute was settled for $575,000.

              Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

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                Securities Lawyer Investigating

                The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related Ashley Woodard, Pamela Lizanich, David Wall and Ronald Metcalf Jr.’s multiple pending customer disputes on the allegation of unsuitability of investment recommendations and failure to supervise.

                The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

                Investors who believe they lost money as a result of conducts related to related Ashley Woodard, Pamela Lizanich, David Wall and Ronald Metcalf Jr.’s customer disputes on the allegation of unsuitability of investment recommendations and failure to supervise, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.

                Mark Hopkins Investigation Into Pending Civil Action on Allegations of Fraud and MisappropriationMark Hopkins, a broker who was barred by the Financial Industry Regulatory Authority (FINRA), is the subject of a pending civil action initiated against him by the United States Securities and Exchange Commission (SEC) on the allegation of fraud and misappropriation of clients’ funds, according to Mark Hopkins investigation by Alan Rosca.

                Securities lawyer Alan Rosca, of Goldman Scarlato & Penny PC law firm is investigating conduct related to the pending civil action instituted against Mark Lewton Hopkins by SEC on the allegation of fraud and misappropriation of clients’ funds.

                Mark Hopkins was previously registered with American Portfolios Financial Services, Inc., a FINRA member firm, between the period of July 2, 2009 and December 20, 2018. Mark Hopkins was alleged to have been in the employment of the firm when he carried out the acts leading to the pending civil action.

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                  Mark Hopkins Is Defendant in a Pending Civil Action by the SEC

                  The Mark Hopkins investigation revealed that he was named defendant in a pending action instituted by the SEC in July 2020 and he has been the subject of previous regulatory actions and customer disputes according to the reports on his FINRA brokercheck page.

                  SEC is alleging that Mark L. Hopkins has violated various states and federal securities legislation including Sections 17 (a) (1), (2), (3) of the Securities Act of 1933. The Complaint filed by SEC before the District Court of the Eastern District of Michigan reported that SEC is alleging that Hopkins misappropriated about $1.15 million from at least five customers of the firm he was previously registered with.

                  As reported on the complaint, it was alleged that Mark L. Hopkins made representations to the customers that he would invest their funds in an investment program at a local credit union but there was no such investment. Instead, Mark Hopkins allegedly deposited the funds into an account he controlled at the credit union and he misappropriated the funds.

                  SEC is seeking a permanent injunction against Hopkins which will refrain him from future violations of the laws in addition to an order requiring Mark Hopkins to pay disgorgements and other civil penalties.

                  Mark Hopkins Has Previously Been the Subject of Past Regulatory Actions and Customer Disputes

                  A regulatory action was initiated against him by the Michigan financial regulatory authority on the allegations that Mark Hopkins made omissions of material facts in connection with the offer or sale of securities.

                  The allegations stated that Mark Hopkins recommended the liquidation of some securities to an investor, to be reinvested in a credit union investment on behalf of the investor, but it was alleged that Mark Hopkins did not disclose to the investor that the funds would be invested in an account they had no control over. This action was settled through a Consent Agreement and Order which required Mark Hopkins to pay $2500 in civil penalties.

                  Mark Hopkins was barred by FINRA in a regulatory action settled in May 2019. According to the brokercheck reports, the action was initiated on the allegation that Mark Hopkins refused to comply with FINRA’s request to produce documents and information requested in connection with an investigation against him. Without admitting or denying the findings, he allegedly consented to the sanctions which barred him indefinitely in all capacities

                  After his bar by FINRA, a customer dispute was initiated against him. The dispute was initiated on July 23, 2019 on the allegation that Mark Hopkins solicited $500,000 for an investment but diverted the funds to his personal use. The client was seeking to recover $500,000 in damages it the dispute was settled for $175,000.

                  Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

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                    Securities Lawyers Investigating

                    The securities lawyer of the Goldman Scarlato & Penny PC law firm expertly advises and represents investors who are victims of broker or investment-related fraud and other misconducts and is currently investigating conduct related to Mark Hopkins’ Pending civil action by SEC on the allegation of fraud and misappropriation of funds.

                    It is important to note that the firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

                    Investors who believe they lost money as a result of conducts Mark Hopkins’ pending civil action by SEC on the allegation of fraud and misappropriation of funds, may contact attorney Alan Rosca for a free, no-obligation evaluation of their recovery options, at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.

                    Jeffrey Cohen investigationJeffrey Max Cohen is the focus of an investigation by Goldman Scarlato & Penny securities lawyer Alan Rosca. The Jeffrey Cohen investigation reveals that Cohen, a registered Investment Adviser and Broker is currently the subject of various pending customer disputes on the primary allegation of unsuitable investment recommendations to clients.

                    Goldman Scarlato & Penny PC securities lawyers Alan Rosca and Paul Scarlato are investigating conduct related to the various pending customer disputes instituted against broker Jeffrey Cohen on the primary allegation of unsuitable investment recommendations.

                    Jeffrey Cohen investigation shows that he is currently in the employment of a Financial Industry Regulatory Authority (FINRA) member firm, Moloney Securities as he was when the various customer disputes were instituted against him.

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                      Broker Jeffrey Cohen Has Two Pending Customer Disputes

                      From the reports on his FINRA Brokercheck page, the investigation into Jeffrey Cohen reveals that there are currently two customers pending disputes against him.

                      The latest pending customer dispute was instituted in July 2020. The client sought $800,000 in damages on the allegations of unsuitable investments to the client. The 2nd pending customer dispute was instituted in August 2019. The dispute was on the allegations of recommending unsuitable investments to the client by recommending the investment into alternative investment. The client sought $2,000,000 in damages.

                      Unsuitable investment recommendation generally is a breach of the duty of a registered investment adviser and broker to provide suitable financial and investment advice to their clients. Brokers and Investment advisers are expected to offer investment recommendations that meet the specific needs and profile of their clients. In providing an investment recommendation, the broker is expected to evaluate such recommendation to ensure the appropriateness of such investment to any investor, after which the broker will examine the appropriateness to the specific investor. After carrying out the previous checks, the broker is then typically tasked to determine the appropriate quantity of the investment is suitable for this client. The appropriate quantity is determined by comparing the client’s financial health, tax status, age, risk tolerance and investment goals among others.

                      Jeffrey Cohen Previously Settled Customer Disputes

                      Jeffrey Cohen investigation into disclosures on his FINRA Brokercheck Page, reveals that Cohen previously settled several customer disputes.

                      The first customer dispute of 2020 was instituted against Jeffrey Cohen in February. The client sought $200,000 in damages based on the same allegation of unsuitable investment recommendation but the dispute was settled for $100,000.

                      In the next month of March, another customer sought $700,000 in damages from another customer dispute on the allegation of unsuitable investment recommendation. And the dispute was settled for $125,000.

                      Next customer dispute was instituted in April 2020. The customer sought $500,000 in damages on the same allegation but the dispute was settled for $95,000.

                      Another customer dispute was instituted in August 2019. The customer alleged that broker Jeffrey Cohen made an unsuitable investment recommendation to the client to invest in alternative investments. As a result, the customer sought $3,000,000 in damages but settled for $700,000.

                      That Jeffrey Cohen investigation also revealed that another customer dispute was instituted in 2001. The client alleged that Cohen was liable for intentional misrepresentation, negligent misrepresentation and breach of fiduciary duty related to financial advice provided in 1996. The client sought $400,000 in damages but the dispute was settled for $320,000.

                      Generally speaking, often times, financial advisers and brokers have a fiduciary duty to their clients. They are often in a position in which they are expected to provide complete and correct information to the client about any investment recommendation. Where the advisor provides false information to the client, or fails to provide the complete information to the client, the advisor’s conduct could potentially constitute misrepresentation or worse, depending on the facts of each specific case. Misrepresentation can lead to great financial losses for the investors and the broker could potentially be held liable for such losses.

                      Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

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                        Securities Lawyer Investigating

                        The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to broker Jeffrey Cohen’s five pending customer disputes on the allegation of unsuitable investment recommendation.

                        The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

                        Investors who believe they lost money as a result of conducts related to broker Jeffrey Cohen’s five pending customer disputes on the allegation of unsuitable investment recommendation may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.

                        Charles Kulch Investigation into Alleged Over-Concentration of Non-Traded Real Estate Investment Trusts and Variable AnnuitiesThe Goldman Scarlato & Penny PC law firm attorneys are currently investigating Charles Kulch (also known as Charles Chester Kulch) on allegations of over-concentrating customers in illiquid, risky, and high commission products including non-traded real estate investment trusts and variable annuities according to an administrative complaint filed by the Secretary of the Commonwealth of Massachusetts. Investors who would like to learn more about the  Charles Kulch investigation are encouraged to contact investor rights attorney Alan Rosca or one of his colleagues for a free case evaluation and discussion of potential options, or to provide any useful information. Call 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.

                        Charles Kulch Under Investigation by the Massachusetts Securities Division

                        In June 2017, the Massachusetts Securities Division began an investigation into Next Financial Group and broker Charles Kulch in connection to a phone call from a Massachusetts retiree investor alleging he did not fully understand the nature of the alternative investments sold to him by Kulch, as stated in the administrative complaint.

                        Allegedly, Kulch recommended and sold hundreds of non-traded REITs to Massachusetts investors for nearly ten years. The complaint further alleges that many of the sales were unsuitable and exceeded Next Financials’ liquid net worth concentration.

                        Between 2010 and 2015, Kulch allegedly processed more than 300 REIT purchases in the accounts of over 160 Massachusetts customers in addition to allegedly processing at least 51 non-traded REIT transactions, according to the complaint.

                        In addition, Next Financial Group allegedly processed multiple simultaneous transactions for 48 of the 51 non-traded REIT transactions in a customer’s account without accounting for the reduction to the customer’s liquid net worth that occurred for each transaction, the complaint states.

                        As alleged in the complaint, Kulch and Next Financial incorrectly calculated the percentage of a customer’s liquid net worth that each non-traded REIT purchase represented.

                        As a result of the alleged misconduct, Next Financial was fined $425,000 for failure to supervise the sales of REITs.

                        In addition, in 2011 the New Hampshire Division ordered Charles Chester Kulch to cease and desist and pay a fine of $140,000 for failure to supervise the dissemination of seminar invitations containing inaccurate information.

                        Next Financial broker Charles Kulch was registered with the firm since October 2006 and remained there until June 2020, as reported on his Brokercheck page.

                        Charles Kulch Paid Nearly $1 Million in Settlements to Customers

                        Between July 2006 and September 2020, Kulch paid investors nearly $1 million in settlements according to his FINRA Brokercheck page.

                        A customer alleging unsuitable nontraded REITs received a $14,999 settlement in September 2020. In May 2016, a customer alleging poor performance was issued a settlement to the tune of $120,000.

                        Another customer was issued a settlement in May 2016 on allegations of unsuitability and breach of fiduciary duty, among other things. The customer received a settlement to the tune of $525,000.

                        Similarly, in April 2016, a customer alleging unsuitable recommendations, among other things, received a settlement of $150,000.

                        A customer who filed a dispute alleging market losses and suitability, received a settlement to the tune of $100,000 in July 2006.

                        Charles Kulch has multiple pending customer disputes on his Brokercheck page alleging unsuitable recommendations of registered, non-traded real estate investment funds. The four disputes were reportedly filed between August 2020 and December 2020 and all four disputes seek unspecified compensatory damages determined by NEXT Financial to be at least $5,000 for the alleged conduct. As of the date of this article, all four disputes show as pending.

                        Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.

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                          Potential Options for Charles Kulch Investors

                          The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or broker misconduct and is currently investigating conduct related to Charles Kulch’s alleged over-concentration of non-traded real estate investment trusts and variable annuities.

                          The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of any money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

                          Investors who are concerned they may have suffered a loss with Charles Kulch may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.

                          Kirk Gill Investigation Into Unsuitable Investment Recommendations AllegationsKirk Gill, a previously registered broker and now investment adviser was the subject of customer disputes initiated against him on the allegation that Gill recommended unsuitable investments to the clients according to the Kirk Gill investigation by Alan Rosca.

                          Securities lawyer Alan Rosca of the Goldman Scarlato & Penny PC law firm, is investigating conduct related to customer disputes against the previous broker, Kirk J Gill, on the allegation of unsuitable investment recommendation.

                          Kirk J Gill was last in the employment of Taylor Capital Management Inc. until August 2019. Previously, Gill was in the employment of Morgan Stanley & Co and he was with this firm when he allegedly carried out the conducts related to the customer disputes. As of the date of this article, Kirk Gill investigation shows him registered with Triumph Wealth Advisors, in Tucson, Arizona.

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                            Kirk Gill Was the Subject of Customer Disputes

                            The Kirk Gill investigation into publicly available records by the Goldman Scarlato & Penny securities lawyers reveals that the investment adviser was the subject of a pending customer dispute, having settled 14 customer disputes filed during the period of 2002 and 2020 as reported on his FINRA Brokercheck page.

                            In September 2020, Kirk Gill settled a customer dispute on the allegation of the investment adviser recommending unsuitable investments from 2013 to 2016. The client was seeking to recover $238,316 but the dispute was settled for $125,000. In March 2019, Kirk Gill settled another customer dispute on the same allegation from 2013 to 2016. The client was seeking to recover $500,000 but the dispute was settled for $130,000.

                            In January 2019, Kirk Gill settled a customer dispute on the allegation of the investment adviser recommending unsuitable energy stocks from 2011 to 2016 for $14,999. He settled another allegation in May 2018 on similar allegations for $38,265.71. The client allegedly verbally complained about an over concentration in oil stocks in their investments from January 2014 to January 2018.

                            Another customer dispute seeking $901,369.78 in damages alleged that the investment recommended unsuitable investments between 2009 and 2016. The dispute initiated in March 2018 was settled for $185,000.

                            In another customer dispute initiated in August 2017 on similar allegations, the client sought to recover $2,000,000 in damages but the dispute was eventually settled for $275,000.

                            Kirk Gill Resigned Due to Heightened Supervision

                            Kirk Gill was permitted to resign from his employer in 2018 on the reason of his failure to agree to the stipulations in his updated heightened supervision plans. First Financial Equity Corporation filed Form U-5 which alleged that the investment adviser was allowed to resign from the brokerage firm on his failure to agree to the heightened supervision plans.

                            Generally speaking, heightened supervision is the supervision a brokerage firm is typically expected to implement on a broker in its employment, who has a history of industry regulatory incidents. Ordinarily, every firm is obligated to adequately supervise the activities of their brokers and monitor such adequately. Where the firm is trying to hire a person who has a recent history of customer disputes and other disciplinary actions involving sales practice abuse and other customer harmful practice, the firm is expected to determine whether they need to implement a special supervisory procedure or determine whether their current method will suffice.

                            This is to ensure the broker does not carry out similar activities and the customers and investors are protected. This procedure is espoused in FINRA Regulatory Notice 18-15 which reiterates the supervisory role of the brokerage firms over their brokers and associates contained in FINRA Rule 3110.  All these are general considerations, not necessarily applicable to any one case, and do not constitute legal advice.  Investors looking for legal advice for their particular situation should contact a qualified lawyer and discuss about the facts applicable to their specific case.

                            Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

                            Concerned about investments with Kirk J Gill?

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                              Securities Lawyer Investigating

                              The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to Kirk Gill’s customer disputes on the allegation of unsuitable investment recommendation.

                              The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

                              Investors who believe they lost money as a result of conducts related to Kirk Gill’s customer disputes on the allegation of unsuitable investment recommendation, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.

                              Visit the GPB Capital Holdings Investor Center for important case documents and investigation updates.

                              GPB Capital HoldingsThe Securities and Exchange Commission (SEC) filed a Complaint on February 4, 2021, against GPB Capital Holdings, Ascendant Capital, Ascendant Alternative Strategies, David Gentile, Jeffry Schneider, and Jeffrey Lash for allegedly engaging in a $1.7 billion fraudulent securities scheme.

                              In a parallel action, seven state securities agencies also filed regulatory actions against GPB; Alabama, New York, and New Jersey filed civil complaints, whereas Georgia, Illinois, Missouri, and South Carolina filed administrative proceedings with help from Texas.

                              The SEC Complaint states that defendants Gentile and Schneider misrepresented to investors that 8% of the annual distribution payments were from GPB’s Portfolio Companies but in reality, the defendants allegedly used investor funds to pay for portions of the distribution payments.

                              The alleged scheme was ongoing for more than four years and over 17,000 investors across the United States were affected by the alleged scam.

                              Goldman Scarlato & Penny PC law firm represents victimized investors of Ponzi schemes and broker misconduct, and are currently representing GPB investors in the class action filed against GPB Capital, other GPB affiliates, along with Gentile, Schneider, Lash, and others. Investors who are concerned about their investments in GPB are encouraged to contact attorney Alan Rosca for a free, no-obligation consultation and discussion of options, or to provide any useful information. Call 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.

                              Invested in GPB Funds?

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                                The SEC Sues GPB Capital for Alleged Ponzi-Like Scheme

                                The SEC filed a complaint against the New-York based asset management firm, GPB Capital and their affiliated entities and control persons alleging a Ponzi-like scheme and defrauding investors in a $1.7 Billion scheme, according to the February 4, 2021 press release.

                                As part of the alleged scheme, GPB Capital allegedly targeted accredited investors, whose net worth or income qualified them to participate in private placement securities transactions that are exempt from SEC and state registration requirements.

                                The alleged scheme focused on the sale of unregistered, high-commission limited partnership interests in a series of alternative-asset investment funds allegedly managed by GPB Capital.

                                GPB Capital, with the alleged assistance from CEO and owner, David Gentile, and former managing partner Jeffrey Lash, allegedly manipulated financial statements of certain partnership funds managed by GPB Capital in order to give the false appearance that the funds were generating more income than it actually was, according to the SEC.

                                Between August 2015 and December 2018, the defendants allegedly engaged in a scheme to defraud current investors and prospective investors through material misrepresentations and omissions.

                                The SEC’s Complaint further notes that GPB Capital and Ascendant Capital allegedly made misrepresentations to investors about millions of dollars in fees and compensation received by Gentile and the owner of Ascendant Capital, Jeffrey Schneider.

                                GPB Capital served as the alleged general partner and/or manager for multiple limited partnership funds including Automotive Portfolio, Holdings I, Holdings II, Waste Management, and Cold Storage.

                                The firm allegedly failed to inform investors of the true financial conditions of the limited partnership funds and failed to register two of the funds with the SEC. In addition, GPB Capital allegedly violated whistleblower provisions by preventing individuals from coming forward to the SEC through termination and separation agreements, the Complaint notes.

                                Victimized GPB Investor?

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                                  David Gentile, Jeffry Schneider, and Jeffrey Lash Face Criminal Fraud and Conspiracy Charges

                                  GPB funds Fraud AlertOn February 4, 2021 David Gentile, Jeffrey Lash, and Jeffry Schneider were charged by the US prosecutors with engaging in a scheme to defraud investors with misrepresenting where funds used to make monthly distribution payments came from as well as lying about the amount of revenue by two of GPB’s investment funds, according to the U.S. Attorney’s Office Department of Justice.

                                  Schneider and Lash were reportedly arrested and Gentile has reportedly agreed to surrender on all related charges.

                                  Gentile, Schneider, and Lash face charges of conspiracy to commit securities fraud, conspiracy to commit wire fraud, securities fraud, and wire fraud. If convicted, the defendants each face up to 20 years of imprisonment.

                                  Reportedly, the defendants used the fund’s assets to enrich themselves, including paying for a private jet, luxury travel, direct payments to personal bank accounts, purchasing luxury cars, payments to family members, among others, according to State complaints filed against GPB Capital.

                                  GPB Capital investors who are concerned about their GPB investments are encouraged to contact attorney Alan Rosca by calling 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage for a free case evaluation and discussion of options.

                                  NASAA Announces State Securities Agencies File Regulatory Actions Against GPB Capital

                                  The North American Securities Administration (NASAA) announced that seven state securities filed regulatory actions against GPB Capital and others for their alleged $1.7 billion scheme to defraud over 17,000 investors nationwide.

                                  Alabama, New Jersey, and New York filed civil complaints, while Georgia, Illinois, Missouri, and South Carolina initiated administrative proceedings with assistance from Texas.

                                  The state complaints and administrative proceedings reiterate the fraud allegation brought by the SEC, and in addition report the following allegations:

                                  • 226 Alabama investors collectively invested over $28 million in GPB Funds;
                                  • 320 South Carolina investors purchased over $28 million investments into GPB Funds;
                                  • more than 1,400 New York investors purchased more than $150 million investments into GPB Funds;
                                  • 255 Missouri investors purchased into GPB Funds;
                                  • 700 New Jersey investors purchased more than $70.4 million into GPB Funds;
                                  • 900 Georgia investors invested over $78 million into GPB Funds.

                                  The states are reportedly seeking court-ordered monetary penalties, investor restitution, disgorgement, and permanent injunctive relief barring the defendants from violating securities laws or participating in the sale or issuance of securities in the future.

                                  Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

                                  Lost Money in GPB Capital Funds? 

                                  Goldman Scarlato & Penny PC law firm has represented thousands of victimized investors of Ponzi-schemes and broker misconduct. Attorney Alan Rosca and his colleagues are currently pursuing compensation on behalf of GPB Capital investors the class action filed against GPB Capital and other perpetrators of the alleged GPB scheme.

                                  The firm takes most cases of this matter on a contingency fee basis and advance the case costs. We only get paid for fees and costs out of money recovered for clients.

                                  Investors who are concerned about their investments with GPB Capital Holdings, David Gentile, Jeffry Schneider, and Jeffrey Lash are encouraged to contact an experienced securities lawyer for a free case evaluation or discussion of potential options by calling 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.

                                  broker ricky alan mantei invetsigationRicky Alan Mantei, also known as Ricky Alan Mantel, a registered investment adviser and broker, is the subject of multiple pending customer disputes filed against him on the allegation of the registered representative recommending unsuitable investment to investors according to an investigation by attorney Alan Rosca.

                                  Securities attorney Alan Rosca of the Goldman Scarlato & Penny PC law firm is investigating conduct related to the multiple pending customer disputes against Ricky Mantei on the allegations of unsuitable investment recommendations.

                                  Ricky Mantei was in the employment of Centaurus Financial Inc. when he allegedly carried out the various activities being disputed in the customer disputes. Centaurus Financial is a Financial Industry Regulatory Authority (FINRA) member firm, and Ricky Mantei is a member of the firm as at the time of this investigation.

                                  Was Ricky Alan Mantei Your Advisor?

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                                    Broker Ricky Mantei is the Subject of Multiple Pending Customer Disputes

                                    Securities attorney Alan Rosca’s investigation of public records reveals that Ricky Mantei is the subject of multiple customer disputes, a number which extends above 30 between December 2016 and November 2020.

                                    The earliest of the customer disputes was reportedly filed in November 2020, by a Mantei customer who alleged unsuitability and requested $125,000 in damages. This dispute was preceded by a class action filed in august 2020 in the State Court of South Carolina, County of Lexington. The group of customers alleged misrepresentation of unsuitable investments and breach of fiduciary duty, the dispute is pending as of the date of this article.

                                    As reported on his FINRA brokercheck page, another customer filed a complaint involving Ricky Mantei in May 2020 alleging that through the period of 2011 and March 2020, Ricky Mantei misrepresented unsuitable investments to them and breached his fiduciary duty towards them. As a result of this, the client is seeking to recover $100,000 in damages.

                                    In April 2020, another client brought an action seeking $100,000 in damages against the investment adviser on the similar allegation of misrepresenting unsuitable investments and breaching his fiduciary duty to them.

                                    In March 2020, another client alleged that the broker, Ricky Mantei, over concentrated their portfolio in unsuitable investments and breached his fiduciary duty to the investor between the period of 2008/2009 and 2017. The client is seeking to recover $100,000 in damages.

                                    Another client, seeking to recover $171,000 in damages, instituted a dispute action in February 2020. Similarly, also in February 2020, a customer asked for $100,000 on damages for unsuitable investments and breach of fiduciary duty allegations. 

                                    In January, the broker was also the subject of a customer dispute action on the same allegation. The client seeks to recover $410,000 in damages.

                                    Finally, two more disputes, both filed on 2019, alleged unsuitability. In one of them, the customer is seeking to recover $150,000, while in the other the damages are unspecified but assessed to potentially be larger than $5,000, FINRA reports.

                                    All the above-mentioned customer disputes are currently reported as pending on Ricky Mantei‘s Brokercheck report as of the date of this article.

                                    Ricky Mantei Customer?

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                                      Ricky Mantei Was The Subject of 25 Settled Customer Disputes

                                      According to Ricky Alan Mantei‘s brokerckeck report, he was subject of a customer dispute as early as August 1995. Since then, 24 additional customer disputes involving Mantei ended in settlement.

                                      In November 2020, a customer received $5,000 in settlement for a dispute alleging misrepresentation of unsuitable investments. In December 2020, another customer received $10,000 in settlement for a dispute alleging unsuitability and breach of fiduciary duty.

                                      In September 2020, a Ricky Mantei customer accepted $14,950 in settlement for similar allegations; in the same month, another customer ended a dispute for identical amount.

                                      In February 2021, another customer accepted $12,500 in settlement of a dispute alleging the same misconduct as the disputes above.

                                      In July 2020, a Ricky Alan Mantei customer dispute filed in December 2019 ended with a $22,000 settlement for concluding a FINRA case alleging unsuitable investments and failure to supervise. Another dispute filed in the same month ended in July 2020 for a $32,715 settlement.

                                      In January 2021, a dispute filed in December 2019 ended in a $4,5000 settlement, while another dispute filed in the same month settled for $12,500.

                                      In May 2020, a customer accepted $12,500 as settlement for a dispute alleging unsuitability and failure to supervise.

                                      In August 2020, a customer dispute was concluded for $22,5000, while in December 2020 a customer settled for $45,000. Both customer disputes were alleging unsuitability.

                                      Thirteen additional settled disputes remain disclosed on Ricky Alan Mantei‘s profile. As of the date of this article the total amount paid in settlements to Mantei’s customers exceeds $800,000.

                                      Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

                                      Concerned about investments with Ricky Mantei?

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                                        Securities Lawyer Investigating Ricky Mantei

                                        The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to Ricky Alan Mantei’s multiple pending customer disputes on the allegation of unsuitable investment recommendation.

                                        The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

                                        Investors who believe they lost money as a result of conducts related to broker Ricky Alan Mantei’s multiple pending customer disputes on the allegation of unsuitable investment recommendation may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.

                                        Patrick Horsman Investors UpdatePatrick Horsman promoted investment programs and sales practices are being investigated by the investor rights lawyers at the Goldman Scarlato & Penny law firm, following allegations of investment fraud and misconduct by some investors in court filings, and Mr. Horsman’s resignation from his brokerage firm. The Goldman Scarlato & Penny investor lawyers would like to speak with Integrated investors who invested in that company at the behest of Patrick Horseman and are concerned about their investments or have useful information that can assist the Goldman Scarlato & Penny attorneys’ investigation.

                                        On October 2, 2020 a civil customer dispute was filed against former Blue Sands Securities broker Patrick Horsman alleging negligent misrepresentation, breach of implied covenant of good faith, unjust enrichment, and fraud, according to Horsman’s FINRA Brokercheck page. As of the date of this article, the dispute shows as pending.

                                        Investor rights attorney Alan Rosca and his colleagues at Goldman Scarlato & Penny PC law firm are investigating Patrick Horsman fraud allegations, alongside allegations of negligent misrepresentation, breach of implied covenant of good faith, and unjust enrichment. Horsman investors who are concerned or have questions about their investments with Patrick Horseman are encouraged to contact Alan Rosca and his colleagues for a free, no obligation discussion about potential recovery options, or to provide useful information.

                                        Invested in Integrated AG or Other Patrick Horsman Investment Programs?

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                                          Patrick Horsman Is Allegedly the Subject of Civil Lawsuit

                                          According to court records filed with the Superior Court of the State of Arizona for the County of Maricopa, a group of investors brought claims against Patrick Horsman and 17 other defendants for alleged fraud, constructive fraud, civil conspiracy, negligent misrepresentation, aiding and abetting tortious conduct, breach of the implied covenant of good faith and fair dealing, conversion, unjust enrichment, and estoppel. The plaintiffs are reportedly seeking compensatory, rescissory, punitive, and any other allowable damages or relief in law in or equity.

                                          Horsman investors who are concerned they may have suffered a loss arising out of their investments, in particular in Integrated AG or Integrated CBD, are encouraged to contact investor rights attorney Alan Rosca and his colleagues for a discussion of their options or for a free case evaluation. Call 888-998-0530, via email at rosca@lawgsp.com, or fill out the contact form on this webpage.

                                          Defendants in the lawsuit are identified with the following information:

                                          • Patrick B. Horsman, a resident of Miami-Dade County, Florida, the President, CEO, and Chairman of the Board for Integrated CBD, and owner/operator of most if not all affiliated entities
                                          • Jeffrey M. Dreyer, a resident of Maricopa County, Arizona, the chief operating officer for Integrated CBD, one of three Board members, and owner/operator of most if not all affiliated entities
                                          • Ari M. Schiff, a resident of Maricopa County, Arizona, officer in charge of agricultural business development for Integrated CBD, and owner/operator of most if not all affiliated entities
                                          • Integrated AG XI, an Arizona limited liability company with Jeffrey Dreyer as the registered agent
                                          • Integrated AG XII, an Arizona limited liability company with Jeffrey Dreyer as the registered agent
                                          • Integrated AG XI AZ, an Arizona limited liability company and Patrick Horseman and other defendants acted/purported as managers
                                          • Integrated AG Holdings, a Delaware limited liability company, and Patrick Horsman, Jeffrey Dreyer, and Ari Schiff acted/purported as managers
                                          • Integrated AG Holdings AZ, a Delaware limited liability company, and Patrick Horsman, Jeffrey Dreyer, and Ari Schiff acted/purported as managers
                                          • Integrated AG LP, a Delaware limited liability company and Patrick Horsman and other defendants acted/purported as managers
                                          • Integrated AG Equipment, an Arizona limited liability company with Jeffrey Dreyer as the registered agent
                                          • IAG equipment, an Arizona limited liability company with Jeffrey Dreyer as the registered agent
                                          • Integrated AG Management, a Delaware limited liability company and Patrick Horsman and other defendants acted/purported as managers
                                          • Integrated AG Operations, a Delawre limited liability company and Patrick Horseman, Jeffrey Dreyer, and Ari Schiff acted/purported as managers
                                          • Verified Organic LP, a Delaware limited liability company with Patrick Horsman and Jeffrey Dreyer, acting/purporting as general/limited partners
                                          • Verified Organic LLC, a Delaware limited liability company, Patrick Horsman and Jeffrey Dreyer are the co-founders, co-owners, and controlling principal members
                                          • AZ Farm Management, a Delaware limited liability company and Patrick Horsman, Jeffrey Dreyer, and Ari Schiff acted/purported as principal members
                                          • Hyder Ranch, a Delaware limited liability company with Integrated AG XII and Goldcrest Farm Trust REIT acting/purporting as principal members
                                          • Goldcrest Farm Trust REIT, a Delaware limited liability company that acted as a principal member of Hyder Ranch

                                          Reportedly, Patrick Horsman, conspiring with the other defendants, allegedly planned and executed an elaborate scheme of fraud and misrepresentation by recommending Plaintiffs to invest in Integrated CBD. As part of the scheme, through negligent misconduct and improper and unreasonable transactions with affiliated entities, Horsman and the individual defendants ran Integrated CBD to the ground. As a result, the plaintiffs’ investments allegedly vanished from the company and into the Defendant’s pockets, all according to court documents.

                                          Concerned About Your Investments with Patrick Horsman?

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                                            Horsman and the individual defendants allegedly operated Integrated CBD as a farming operation company that grows industrial organic hemp and extracts CBD to sell to large industrial and multinational brands in the pharma and consumer space, according to the public documents. Patrick Horseman and other defendants reportedly misrepresented to investors that Integrated CBD had access to over 10,000 acres of certified organic/conventional farmland in Arizona but according to their lease agreement, they only had access to 8,524 acres. In addition, approximately 1,500-4,000 acres of the land was not farmable due to lack of water and other issues, all according to court records.

                                            As shown in the documents filed with Superior Court of Arizona for the County of Maricopa, the defendants in the lawsuit allegedly misrepresented Integrated CBD as a farmland with capabilities to produce viable organic hemp crop but in reality, the defendants were reportedly well aware that the farmland was incapable of producing viable organic hemp crop due to soil salinity, rockiness, water salinity, and access issues in the region.

                                            Horsman and the individual defendants also allegedly represented Integrated CBD as a strategic combination of ‘Big Ag’ expertise with Hemp Expertise. But it is reported that Integrated CBD allegedly did not have any hemp expertise nor any meaningful, relevant hemp knowledge or experience. In addition, defendants in the lawsuit allegedly represented that the company was engaging in reasonable transactions with affiliated entities but the assets, equipment, and supplies that were leased by the company were reportedly owned by entities that were owned and managed by the individual defendants, all according to court documents.

                                            Court documents filed with the Superior Court of Arizona for the County of Maricopa report Patrick Horseman and the individual defendants publicly represented that Integrated CBD allegedly raised $50 million in senior secured debt from a New York based hedge fund, and $70 million total in debt and equity capital, as a way to boost the company’s outward appearance and attract new investors. The defendants were allegedly well aware that the company had already, or in the near future, would run out of funds and fail to produce hemp crops, thus, causing the company to collapse, court documents alleged.

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                                              Reportedly, Patrick Horsman was using millions of dollars worth of plaintiff’s investments for personal travel, leisure, financial purposes, and for the use and benefit of other affiliated entities that Horsman allegedly owned and controlled. Horsman allegedly used approximately $2 million of the company’s funds (plaintiffs’ investments) to pay off credit card bills in his name. In addition, Patrick Horseman allegedly bought a private jet that cost more than a million dollars with the logo of his investment firm, Horsman Holdings, embroidered on the exterior of the jet.

                                              Integrated AG Integrated CBDAllegedly, the plaintiff’s investments were being used to enrich the defendants through affiliated-entity transactions and as a result, Integrated CBD failed and became insolvent. When plaintiffs eventually began asking questions about the status of their investments, Horsman and other defendants allegedly provided periodic status updates purporting that hemp crop was successfully being grown on the farmland even though this was not the case. This was allegedly a part of the scheme of fraud to keep plaintiffs invested in Integrated CBD.

                                              Reportedly, around January 20, 2020, Horsman contacted plaintiffs to inform them that Integrated CBD had crumbled and would need more money in order to continue. Through Horsman and the individual defendants alleged wrongful and fraudulent acts, plaintiffs’ investments were completely gone. As early as December 2019 and as late as February 2020, Horsman allegedly fired and laid off all of Integrated CBD’s employees due to a depletion of funds. Shortly after, Horseman caused Integrated CBD to apply for a loan through the Paycheck Protection Program, and on April 29, 2020, the loan request was allegedly approved in the amount of $150,000-$350,000.

                                              Horsman investors who believe they suffered a loss in connection with Patrick Horsman aforementioned allegations are encouraged to contact attorney Alan Rosca of the Goldman Scarlato & Penny PC law firm. Alan Rosca and his colleagues have extensive experience representing investors who have lost money due to broker misconduct. For a free case evaluation or discussion of potential recovery options, give us a call at 888-998-0530, send an email to rosca@lawgsp.com, or fill out the contact form on this webpage.

                                              Patrick Horsman Allegedly Permitted to Resign from Blue Sands Securities

                                              On October 9, 2020 Blue Sands Securities permitted Patrick Horsman to resign from the company due to a customer’s complaint that alleged negligent misrepresentation, breach of implied covenant of good faith, unjust enrichment, and fraud, as reported on Horsman’s Brokercheck page.

                                              Before Horsman’s employment with Blue Sands Securities, he was previously employed with Pali Capital located in New York, New York from April 7, 2004 until May 23, 2007 and Investors Resources Group located in Vacaville, California from August 29, 2003 until February 18, 2004.

                                              Integrated Investor?

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                                                Patrick Horsman Sanctioned by FINRA 

                                                Two regulatory action disclosure on Horsman’s FINRA Brokercheck page reports Horsman allegedly purchased 11 initial public offerings (IPOs) while registered with Blue Sands Securities, according to FINRA’s Letter of Acceptance, Waiver and Consent(AWC). Horsman purchased IPO shares in three brokerage accounts held at Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley&Co, and Fidelity Brokerage Services, the AWC reports.

                                                As reported on the AWC, Horsman allegedly opened two accounts at Fidelity in January 2014 and February 2014, which he failed to disclose in writing to Blue Sand Securities until December 2014. He also allegedly opened two accounts at Morgan Stanley in July 2014 and September 2014, and failed to disclose in writing to Blue Sand Securities until December 2015.

                                                According to AWC, FINRA prohibits IPO purchases when associated with a FINRA member firm, therefore Patrick Horseman violated FINRA Rules. As a result, on March 1, 2017, Horsman received a 10 day suspension, a fine of $20,000, and disgorgement of $10,537.34, the AWC reports.

                                                On March 27, 2018, the Massachusetts Securities Division initiated a regulatory action with FINRA and  sanctioned Horsman for a period of three years due to the 10 day suspension he received in March 2017 for the allegations of purchasing 11 IPOs while registered with Blue Sands Securities, according to his FINRA Brokercheck page. The sanction ordered extensive supervision of Horseman with all potential Massachusetts investors to ensure investors qualify as accredited investors, and a mandatory review of Horsman’s personal securities transactions.

                                                Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated, and no allegations of misconduct are being independently made in this blog.

                                                Invested with Patrick Horsman? Discuss with Securities Lawyers

                                                Patrick Horseman investment lossThe Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or broker misconduct and we are currently investigating Patrick Horsman fraud, misrepresentation, unjust enrichment, and breach of implied covenant of good faith allegations.

                                                Concerned Patrick Horsman investors are encouraged to contact us today. The firm takes most cases of this type on a contingency fee basis and advances the case costs, we only get paid for fees and costs out of money we recover for clients. All consultations are free.

                                                Attorney Alan Rosca, securities lawyer and adjunct professor of securities regulation, has represented thousands of investors who experienced losses at the hand of their investment adviser across the country and around the world in cases ranging from arbitrations to class actions.

                                                Patrick Horsman investors concerned about potential losses, or who would like to assist our investigation may contact attorney Alan Rosca for a free, no obligation evaluation of their recovery options by calling 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this page.