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Securities LawyersPreviously registered stockbroker John Krohn of West Des Moines, Iowa is currently under investigation by securities lawyers, related to five customer complaints and his reported sales of investments in Spotlight Innovation. At the time of writing, Krohn and his former broker-dealer firm Principal Securities, Inc are being investigated following a a Financial Industry Regulatory Authority (FINRA) report, alleging that Krohn has been improperly soliciting unauthorized investments that resulted in a loss of investor assets. Of the five customer complaints, and the one FINRA regulatory allegation, two of the customer accusations are shown as denied and three are pending on the FINRA Brokercheck Report. In relation to the FINRA regulatory allegation, Krohn has accepted and consented to sanctions and waivers, alongside a financial penalty.

Securities lawyers Alan Rosca and his colleagues are investigating potential claims on behalf of investors who lost money invested with Krohn.

FINRA Sanctioned Krohn for his Involvement in Outside Business Activities

In its regulatory case, FINRA alleged that Krohn was actively and improperly involved in outside business activities, making a total of $7.9 million in personal purchases away from the firm without providing prior written notice. The allegation also reportedly examined the motives surrounding these activities, as the aforementioned transactions were outside the sphere of Krohn’s employment with the firm. He also allegedly failed to inform the firm of his role in the transactions, alongside failing to notify the firm about whether he was expecting to or had already received financial compensation from the sales. The sales were party made via an investing company, which Krohn partially owned with a client, according to FINRA’s allegations. As a result of these findings, Krohn received a three-month suspension from FINRA and a Civil and Administrative Penalty of $10,000.00.

Krohn and his brokerage firm Principal Securities, Inc are accused by former clients of soliciting investments into companies linked to Krohn, failure to oversee private security transactions and selling-away activities.

Krohn’s FINRA Brokercheck report also shows two denied allegations. The first involves investments into private placements while linked to Principal Securities, Inc and the second relates to variable annuity while Krohn was affiliated with Princor Financial Services Corporation. The source for the alleged private placements accusation is Principal Securities, Inc, seeking damages totaling $97,000.00. The source for the second denied activity comes from a broker who represented one of Krohn’s customers, seeking damages worth $5,696.00.

Investors who believe they may have lost money in connection with investments recommended by John Krohn are urged to contact Goldman, Scarlato & Penny securities lawyers Alan Rosca or Paul Scarlato for a free, no-obligation discussion regarding their options.

Investment Loss Recovery LawyersPending Customer Disputes on John Krohn’s FINRA report

In February 2019, a customer filed a complaint against Krohn for soliciting large investments into other companies that he in partially owned, managed, or oversaw. His FINRA Brokercheck report states that the damage amount requested is $28,000,000.00, for punitive damages and interest.

During February 2020, another of Krohn’s customers filed a complaint against him and the firm Principal Securities, Inc, for failing to supervise private security transactions. These transactions are purported to include selling- away activities and outside business activities. Krohn’s FINRA Brokercheck Report shows that the damage amount requested in relation to these actions is $1,200,000.00, and accounts for interest, attorneys’ fees, expert fee’s, forum fee’s and punitive damages.

In March 2020, a former customer filed a complaint against Principal Securities, Inc, in relation to Krohn’s misconduct, which allegedly resulted in a loss of investment for the claimant. Krohn’s FINRA Reports highlights activities associated with private security transactions and dealings with claimants, which the firm failed to supervise satisfactorily. The damages requested stand at $10,000,000.00.

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.

Did You Have An Investment With John Krohn? Securities Lawyers Investigating 

The securities lawyers team at Goldman Scarlato & Penny PC are investigating activities surrounding Krohn’s alleged sales of investments in Spotlight and other entities. Goldman Scarlato & Penny represent investors who have lost money due to stockbroker misconduct, unsuitable investment recommendations or material misrepresentations or omissions. Goldman Scarlato & Penny PC’s security attorney, Alan Rosca, has assisted thousands of victimized investors around the country and the globe in areas from class action suits to arbitrations.

If you are a previous investor with Krohn or Principal Securities, Inc and are concerned that you may have lost assets or if you wish to inquire regarding your potential financial recovery options, you may contact Alan Rosca or his colleagues for a free, no-obligation discussion about your options. Investors who may have useful information pertaining to Krohn’s activities are also urged to contact Alan Rosca at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on the webpage.

EquiAlt fraud

On February 18, Securities and Exchange Commission announced that it filed an emergency enforcement action and a temporary restraining order and asset freeze against Tampa private real estate company EquiAlt LLC, and its principals Brian Davison, and Barry Rybicki. The Commission is alleging that EquiAlt, through its funds, raised more than $170 million from at least 1,100 investors. The investor rights attorneys at Goldman Scarlato & Penny PC law firm are investigating the EquiAlt ponzi scheme allegations, and the potential liability of entities and individuals that participated in, or assisted, the alleged fraudulent conduct. 

Investors who believe they may have lost money in activity related to EquiAlt Funds, Davidson and Rybicki’s alleged fraud scheme are encouraged to contact attorney Alan Rosca or his colleagues Paul Scarlato and Chris Pfeiffer for a free, no-obligation discussion about potential recovery options. Call 888-998-0530 or email rosca@lawgsp.com to learn more.

EquiAlt Funds Ongoing Investigation  

EquityAlt LLC was launched in 2011 by founder and CEO Brian Davison as an effort to reinvent himself after a previous lending company, Affinity Capital LLC, went bust and he had to file for bankruptcy, Tampa Bay Times reports

According to the SEC complaint, EquiAlt’s primary business is to manage its four real estate investment funds: EquiAlt Fund, LLC, EquiAlt Fund II, LLC, EquiAlt Fund III, and EA SIP, LLC. At all times Davison controlled the finances of the funds and was responsible for making the Ponzi scheme payments to EquiAlt investors, the complaint notes. Barry Rybicki, in his capacity as Managing director, allegedly was responsible for communications with investors and for executing agreements with investors.

On its website EquiAlt claims that it is “an investment management firm that specializes in alternative assets and private equity.” and promotes itself as being “Simple, Stable and Un-Leveraged”. The Commission alleges that this is one of the many misrepresentations EquiAlt made to investors.

SEC Accuses EquiAlt of Engaging in Fraudulent Conduct

In its complaint filed on February 11, 2020, the Securities and Exchange Commission alleged that: 1) the EquiAlt funds and its principals engaged in Ponzi Scheme; 2) Brian Davison and Barry Rybicki used investor money for their personal benefit; 3) EquiAlt, Davison and Rybcki engaged in misrepresentation, omissions, and false claims.

EquiAlt Ponzi Scheme Allegations

Between 2010 and end of 2019, EquiAlt raised more than $170 million from 1,100 investors, the complaint notes. Of the total amount, $145 million was raised in the last four years. The Commission alleges that by the end of 2020, investors in three of the four EquiAlt funds will be owed approximately $167 million in principal and interest. In comparison, at the end of last year EquiAlt had only $6.8 million in cash, and the SEC alleges that EquiAlt earned just $4.4 million last year by administering properties it owned.

According to the complaint, at all times the revenues generated by the EquiAlt funds were consistently less than the amount of interest owed to investors. The complaint goes on to state that since their inception, the EquiAlt funds were paying old investors by using money raised from new investors, in a Ponzi-like fashion.

EquiAlt Investor Money Used to Buy Luxury Items

EquiAlt investment losses

The Commission alleges that on multiple occasions Davison and Rybicki received improper cash distributions from the EquiAlt Funds. The complaint states that they used this money to buy expensive personal items such as luxury cars, jewelries, and private jets. 

In addition, Davison used investor money to pay personal taxes owed to the Internal Revenue Service, and stayed multiple times in a $2,7 million Manhattan condominium which has never generated any income for EquiAlt Funds despite being purchased with investor funds, the complaint notes.

EquiAlt Funds Allegedly Made Misrepresentations, Omissions, and False Claims

According to documents filed in the SEC case, currently under the review by securities lawyers at Goldman Scarlato & Penny, most of the EquiAlt investors were unsophisticated, unaccredited, and many of them used their retirement funds to invest in EquiAlt. “I didn’t understand the document much” said a retired investor from California in a SEC questionnaire filed as an Exhibit to Motion for Temporary Restraining Order unsealed on February 14.

In a press release announcing the lawsuit, Securities and Exchange Commission Miami regional director Eric I. Bustillo declared that ‘Davison and Rybicki made ‘too good to be true’ promises about nearly every material aspect of EquiAlt’s business’.

EquiAlt Investments Marketed as Safe

According to the SEC case documents, EquiAlt, Davison and Rybicki were pitching investments in the Funds as “safe” and “conservative”. Allegedly, investors reported that they were told that EquiAlt Fundsnever lost dollars since inception”. In addition, the investors were assured that “EquiAlt could not go bankrupt” the complaint notes.

Alleged False Claims about the use of EquiAlt Investor Funds

EquiAlt, Davison and Rybicki allegedly told investors that 90% of their money would be invested in distressed real estate, and that they would earn 8 to 10% annually, once the properties were rented or flipped to new owners. Instead less than half of investor funds were used to buy real estate, the complaint notes.  

According to the Commission, the remaining funds was used for undisclosed and improper purposes such as the payment of millions of dollars in fees and bonuses to EquiAlt and others, causing the Funds to be unable to cover the principal and interest owed to investors, the complaint alleges.

Additional alleged misrepresentations and omissions by EquiAlt

According to documents filed in the SEC case, under the review by securities attorney Alan Rosca and his colleagues, EquiAlt, Davison and Rybicki falsely claimed that at least one Fund was registered with the Securities and Exchange Commission. 

The complaint also states that the aforementioned defendants used third party sales agents and in-house employees to market and raise funds from the general public, and allegedly failed to disclose that over the course of several years the EquiAlt paid $24 million in commissions to sales agents using investor money.

Additional misrepresentations were allegedly made by EquiAlt regarding using licensed brokers, and the fact that certain qualified persons were involved in the management of the Funds.

EquiAlt Principals Deny SEC Allegations

EquiAlt investor representation

In a text message to the Tampa Bay Times, Davison said, “we deny the allegations and look forward to our day in court.”

The SEC’s filings present an inaccurate picture of Mr. Rybicki’s business dealings, and we look forward to addressing these matters with the court.” declared Stephen Cohen of Sidley Austin LLP, attorney for Barry Rybicki in an email to Tampa Bay Business Journal.

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.

Securities Lawyers Investigating EquiAlt 

The Goldman Scarlato & Penny PC investment fraud lawyers represent investors who lose money as a result of fraud. Currently, our attorneys are investigating EquiAlt ponzi scheme allegations. The goal of their investigation is to determine whether investors have additional claims for compensation against entities that may have assisted in the perpetration of the EquiAlt alleged fraud.

The firm takes most cases of this kind on a contingency fee basis and advance the case costs; payments for their fees and costs only come out of money recovered for clients. A securities lawyer and adjunct professor of securities regulation, attorney Alan Rosca has represented thousands of victimized investors, both in the United States and around the world, in cases ranging from arbitrations to class actions.

Investors who believe they may have experienced loss as a result of the EquiAlt’s alleged ongoing fraud may contact attorney Alan Rosca or his colleagues for a free, no-obligation evaluation of their recovery options. Investors can call 888-998-0530, email rosca@lawgsp.com, or use the contact form on this webpage to get in touch.

security fraud class action lawsuit

If you used a payment card (credit or debit) when making a purchase at a Wawa convenience store anytime after March 4, 2019, your name, credit and/or debit information, and possibly other personal information may have been exposed.

In November, 2019, the credit card company VISA warned companies like Wawa that gas stations have been targeted by cybercriminals because many of them have been slow to adopt secure payment-processing technology. A month later, on December 19, 2019, Wawa announced that customers at all 850 Wawa stores, including those containing gas stations, were at risk of identity theft. Wawa allowed hackers to access customer information for nearly ten months, starting March 4, 2019 or earlier.

The privacy rights lawyers at Goldman Scarlato & Penny, P.C. are investigating claims on behalf of all persons whose payment card information was stolen through the Wawa data breach.

If your private information may have been compromised, please contact a GSP attorney to learn more about your rights. GSP’s privacy rights lawyers are currently representing or have represented victims of data breaches against Anthem, Inc., 21st Century Oncology, Community Health Systems, Inc., Athens Orthopedic Clinic, PA, Premera, Intuit, Medical Informatics, Excellus BlueCross BlueShield, United Shore, Xerox Mortgage Services, and Target Corporation. Most recently, GSP attorneys representing victims of the Athens Orthopedic Clinic data breach scored a 9-0 victory in a ruling by the Georgia Supreme Court which recognized that victims of data breaches like this may have claims even if their information has not yet been used by criminals or if they have not yet experienced identity theft.

For more information, please email Mark Goldman directly at goldman@lawgsp.com or call Mr. Goldman at (484) 342-0700 to talk to a lawyer free of charge.

Mediatrix Capital

Mediatrix Capital, Blue Isle Markets Inc., & Blue Isle Markets Ltd. Allegedly Operated a $125 Million Fraud Scheme; SEC Investigating 

Michael Young, Michael Stewart, and Bryant Sewall, and their companies Mediatrix Capital, Blue Isle Markets Inc., & Blue Isle Markets Ltd., allegedly operated a $125 million fraud scheme, according to an SEC Complaint under review by investor rights attorney Alan Rosca. 

Investor rights attorney Alan Rosca, of the Goldman Scarlato & Penny PC law firm, is investigating activity related to Michael Young, Michael Stewart, and Bryant Sewall, and their companies Mediatrix Capital, Blue Isle Markets Inc., & Blue Isle Markets Ltd.’s alleged fraud scheme. Investors who believe they may have lost money in activity related to Michael Young, Michael Stewart, and Bryant Sewall, and their companies Mediatrix Capital, Blue Isle Markets Inc., & Blue Isle Markets Ltd.’s alleged fraud scheme are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.

Michael Young, Michael Stewart, and Bryant Sewall, and their companies Mediatrix Capital, Blue Isle Markets Inc., & Blue Isle Markets Ltd. are also the subject of an emergency enforcement action, and the SEC has also acquired a temporary restraining order as well as an asset freeze of the three aforementioned managers over their alleged fraudulent international trading program, the SEC reports

Young, Stewart, and Sewall, via Mediatrix Capital, Blue Isle 1, and Blue Isle 2, allegedly raised over $125 million from investors in unregistered securities offerings by representing to investors that their money would be brought together and purportedly invested using the aforementioned defendants’ allegedly highly profitable algorithmic trading strategy, the SEC states

Said defendants allegedly made false statements to investors that, from December 2013 through at least March 2019, their trading strategy had never had an unprofitable month and had returned more than 1,600%, the SEC notes. The aforementioned defendants allegedly further claimed that their highly successful trading strategy had enabled Mediatrix Capital to accumulate assets under management of $225 million as of the end of 2018, the SEC reports

None of this was true, the SEC notes

Kurt Gottschall, director of the SEC’s Denver regional office, has made the following statement:

We allege that this scheme has resulted in tens of millions of dollars in investor losses, in part, to fund defendants’ luxurious lifestyle.

Mediatrix Capital, Blue Isle Markets Inc., & Blue Isle Markets Ltd. Allegedly Misappropriated over $35 Million of Investors’ Money 

Young, Stewart, and Sewall, via Mediatrix Capital, Blue Isle 1, and Blue Isle 2, since mid-2016, allegedly have misappropriated over $35 million of investors’ money by transferring it out of the Entity defendants’ bank and brokerage accounts as opposed tousing the money for trading, and said defendants allegedly used investors’ money to purchase luxury properties and vehicles, and diverted more than $5 million of additional investors’ funds for other improper expenditures to perpetuate the fraud, the SEC states.

The SEC goes on to report that, even when the aforementioned defendants allegedly used the remaining portion of investors’ money for trading, said defendants’ trading consistently lost money – losing more than $18 million from its trading in 2018 alone, the SEC states

Because of the aforementioned defendants’ large misappropriation and trading losses, Mediatrix Capital’s assets under management are far away from the amounts represented by said defendants, the SEC details

For example, at year-end 2018, said defendants allegedly represented that Mediatrix Capital had $225 million under management, when in reality, the firm had approximately $35.3 million in assets under management, or less than 16% of the amount claimed, the SEC reports.

Mediatrix Capital, Blue Isle Markets Inc., & Blue Isle Markets Ltd. Allegedly Defrauded Investors by Misrepresenting Their Purported Profitability

Young, Stewart, and Sewall, via Mediatrix Capital, Blue Isle 1, and Blue Isle 2, in order to induce investment into their failing trading strategy, allegedly defrauded investors by purportedly repeatedly misrepresenting the profitability of their trading, falsifying investors’ account statements to show phantom profits, and making Ponzi-like payments to investors who opted to cash out their profits — all in order to prop-up the façade of profitable trading, the SEC notes

The aforementioned defendants allegedly made numerous additional, material misrepresentations and omissions to investors regarding the supposed transparency of Mediatrix Capital’s trading, as well as third party involvement in verifying trading results, and said defendants also allegedly falsified investors’ account statements and manipulated trading results to reflect profits rather than the actual losses resulting from their trading, the SEC reports.  

Said defendants also allegedly made false claims that Mediatrix Capital’s trading results had received an audit, and also allegedly made numerous misleading statements implying that Blue Isle 1 and Blue Isle 2 were independent, third-party administrators that received Mediatrix Capital’s trading data directly from brokerage firms before reporting it to investors, when in fact, the aforementioned defendants allegedly owned and controlled the Blue Isle entities and manipulated the trading data it conveyed to investors, the SEC notes

As a result of the conduct described herein, the SEC states, said defendants allegedly violated Sections of the Securities Act and Sections of the Securities Exchange Act.

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.

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 are currently investigating Michael Young, Michael Stewart, and Bryant Sewall, and their companies Mediatrix Capital, Blue Isle Markets Inc., & Blue Isle Markets Ltd.’s alleged fraud scheme. 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, and 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 Michael Young, Michael Stewart, and Bryant Sewall, and their companies Mediatrix Capital, Blue Isle Markets Inc., & Blue Isle Markets Ltd.’s alleged fraud scheme 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.

Michael G. Hull, Greenpoint Asset Management II LLC, Christopher J. Nohl, & Chrysalis Financial LLC

Michael G. Hull & His Entity, Greenpoint Asset Management II LLC, & Christopher J. Nohl & His Entity, Chrysalis Financial LLC Purportedly Ran a $52. 783 Million Offering Fraud

Michael G. Hull and his entity, Greenpoint Asset Management II LLC, and Christopher J. Nohl and his entity, Chrysalis Financial LLC, from April 25, 2014 to June 2019, allegedly orchestrated a $52.783 million offering fraud involving approximately 129 investors in 10 states, according to an SEC Complaint under review by investor rights attorney Alan Rosca.

Investor rights attorney Alan Rosca, of the Goldman Scarlato & Penny PC law firm, is investigating activity related to Michael G. Hull, Greenpoint Asset Management II LLC, Christopher J. Nohl, and Chrysalis Financial’s LLC alleged operating fraud. Investors who believe they may have lost money in activity related to Michael G. Hull, Greenpoint Asset Management II LLC, Christopher J. Nohl, and Chrysalis Financial’s LLC alleged operating fraud are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.

Fund, Hull, Nohl, and their entities, in the offering materials for Greenpoint Tactical Income, allegedly made false and misleading statements to the aforementioned investors, the Complaint states, and Hull, Nohl, and their entities have also allegedly represented to investors that Greenpoint Tactical Income Fund is a so-called income fund. 

In reality, however, the Fund’s holdings are almost entirely non-income-generating and illiquid assets, and, as of June 30, 2018—the last date for which the Fund has financial statements—52% of the Fund’s purported value is its gem and mineral collection and 46% of the Fund’s purported value is a portfolio of debt and equity securities of private companies, primarily consisting of a now defunct and worthless environmental remediation company, the Complaint reports. 

Bluepoint, via Hull, allegedly recommended that all of Bluepoint’s individual clients invest in the Greenpoint Tactical Income Fund and other affiliated Greenpoint Funds, and Hull also allegedly made said recommendations without regard for each individual investor’s needs and circumstances, the Complaint details.

What is more, Hull, Nohl, and their entities are allegedly investment advisers to Greenpoint Tactical Income Fund and owe fiduciary duties to the Fund including a duty of loyalty, the Complaint states. 

Michael G. Hull operates Greenpoint Asset Management II LLC, and is also the co-owner of Bluepoint Investment Counsel, LLC, a now de-registered investment adviser that claimed to have as much as $145 million in assets under management, the Complaint reports, and Christopher J. Nohl operates Chrysalis Financial LLC.

Greenpoint Tactical Income Fund LLC & Their Entities Allegedly Made False & Misleading Statements to Investors 

Hull, Nohl, and their entities allegedly made false and misleading statements to investors regarding Greenpoint Tactical Income Fund LLC, the Complaint notes. 

Hull, Nohl, and their entities, for example, allegedly stated that, as of June 30, 2018, the Fund had a net asset value of $135 million based almost entirely on unrealized gains, and indeed, 95% of the purported gains are allegedly unrealized, the Complaint states. 

Said gains are allegedly largely fictitious, and Hull, Nohl, and their entities have allegedly made misleading statements to investors as to how they have been operating the Fund and valuing its assets, the Complaint reports.

Hull, Nohl, & Their Entities Allegedly claim that the Greenpoint Fund Had a Return on Investment of 65.68% for 2014, & a Return on Investment of Just in Excess of 50% for 2015

Hull, Nohl, and their entities, for 2014, allegedly claim that Greenpoint Tactical Income Fund had a return on investment of 65.68%, and for 2015 they allegedly claim that the Fund had a return on investment of just in excess of 50%, the Complaint reports. 

For 2016, Hull, Nohl, and their entities allegedly claim that the Fund had a return on investment of 25.48%, and for the first two quarters of 2018, they allegedly claim that the Fund had a return on investment of 16.11%, the Complaint states.  

As of June 30, 2018—the last date for which the Fund has financial statements—52% of the Fund’s purported value is its gem and mineral collection and 46% of the Fund’s purported value is a portfolio of debt and equity securities of private companies, primarily consisting of a now defunct and worthless environmental remediation company, known in the Complaint only as Private Company 1, the Complaint reports. 

The purported returns allegedly come from Hull and Nohl purportedly improperly inflating the value of Private Company 1 and from the valuations of the gems and minerals that, amongst other things, and allegedly failed to comply with the minimal valuation procedures contained in the Fund’s operating agreements, the Complaint notes. 

Hull, Nohl, and their entities initially valued the Fund’s interest in Private Company 1 at over $4.2 million as of December 31, 2015 and increased the value of the Fund’s interest to over $46 million as of June 30, 2018, the Complaint details. 

Hull, Nohl, and their entities allegedly more than doubled the value from the fourth quarter of 2017 to the first quarter of 2018 while knowing that the primary subsidiary of Private Company 1 was in default on a line of credit secured by all of the subsidiary’s assets and guaranteed by Private Company 1, the Complaint states. 

Private Company 1 is now defunct and worthless, the Complaint reports. 

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.

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 are currently investigating Michael G. Hull, Greenpoint Asset Management II LLC, Christopher J. Nohl, and Chrysalis Financial’s LLC alleged operating fraud. 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, and 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 Michael G. Hull, Greenpoint Asset Management II LLC, Christopher J. Nohl, and Chrysalis Financial’s LLC alleged operating fraud 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.

Brenda A. Smith Allegedly Engaged in Fraudulent, Deceptive, & Manipulative Business Practices; Smith Allegedly Ran $105 Million Ponzi Scheme 

Brenda A. Smith, of Philadelphia, Pennsylvania, is the subject of an SEC suit that alleges she engaged in fraudulent, deceptive, and manipulative business practices and perpetrated a Ponzi-like scheme, according to a Complaint filed in the U.S. District Court for the District of New Jersey under review by investor rights attorney Alan Rosca.

Brenda A. Smith, who worked out of West Conshohocken, Pennsylvania, along with her co-Defendants, allegedly solicited approximately $105 million from investors in the Philadelphia area and elsewhere for purported investment in sophisticated securities trading strategies, according to the aforementioned Complaint. 

Investor rights attorneys Alan Rosca and Paul Scarlato, of the Goldman Scarlato & Penny PC law firm, are investigating activity related to Brenda A. Smith’s alleged Ponzi scheme. They are collecting evidence, have been interviewing individuals with direct knowledge of key aspects of Smith’s alleged scheme, and have identified a number of potential recovery options for investors. Their focus is on certain third parties that, they believe, played a role in assisting, enabling, or failing to prevent Smith’s alleged fraud. 

Investors who believe they may have lost money in activity related to Brenda A. Smith’s alleged fraudulent, deceptive, and manipulative business practices are encouraged to contact attorneys Alan Rosca and Paul Scarlato with any useful information or for a free, no obligation discussion about their options.

Brenda Smith, from at least February 2016 through the present, along with defendants Broad Reach Capital, LP, defendant Broad Reach Partners, LLC , and defendant Bristol Advisors, LLC – all of which were entities she controlled – allegedly engaged in the aforementioned alleged fraud, the Complaint notes. 

Smith, however, allegedly misused the vast majority of the funds she raised from investors for unrelated companies, to pay back other investors, and for personal use, and, in 2019, was confronted with at least one investor trying to redeem their investment, the Complaint further details. 

Smith then allegedly created a fictitious valuation of assets backed by false claims that she held billions of dollars in assets through a company she owned, the Complaint reports. 

Smith allegedly dominated and controlled the Entity Defendants such that they were essentially her so-called alter egos, the Complaint states. 

Smith through the aforementioned Entity Defendants, allegedly offered limited partnership interests in the Fund to investors beginning in early 2016, the Complaint details. 

From the Fund’s inception, Smith purportedly raised approximately $105 million from at least 40 investors, the Complaint states. Said investors are still owed more than $63 million in principal, the Complaint notes, and the case has all the telltale signs of an alleged Ponzi scheme, according to Reports from Philadelphia. 

Brenda SmithBrenda A. Smith Allegedly Falsely Represented That Her Fund Employed Several Profitable, Sophisticated Trading Strategies

Brenda A. Smith, in order to allegedly solicit and retain investors, allegedly represented that the Fund employed several profitable, sophisticated trading strategies involving highly liquid securities, including those that it was uniquely positioned to pursue because of its access to the Philadelphia Stock Exchange trading floor, the Complaint states. 

In truth, only a small fraction of investor money was actually used for these strategies, the Complaint states. 

A good amount of the funds were allegedly moved through the bank accounts of entities Smith controls and ultimately used to, among other things, make her own personal investments and to repay other investors, the Complaint reports.

Smith, furthermore, in order to lull existing investors and solicit additional investments, allegedly provided monthly account statements reflecting high returns and so-called tear sheets touting the Fund’s overall claimed 30%+ yearly return and that the Fund had never had a losing month, the Complaint notes. 

The SEC maintains that these and other performance statements were allegedly false, the Complaint details.  

Brenda Smith Charged with Wire & Securities Fraud

Brenda A. Smith has also been charged by the U.S. Attorney’s Office for the District of New Jersey with four counts of wire fraud and one count of securities fraud, the Complaint states.

Smith previously was disciplined by FINRA in June, and her registration was revoked and she was barred from associating with any FINRA member, FINRA notes.

  1. Jeffrey Boujoukos, the director of the SEC’s Philadelphia office, has made the following statement regarding the case:

An investment adviser serves in a position of trust and has a fiduciary duty to speak truthfully to clients… We allege that Ms. Smith breached her clients’ trust by misleading investors with false claims of how she invested their money and how those investments performed.

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.

What Brenda Smith Investors Should Do

The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating  Brenda A. Smith’s alleged fraudulent, deceptive, and manipulative business practices. 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  Brenda A. Smith’s alleged fraudulent, deceptive, and manipulative business practices may contact attorneys Alan Rosca or Paul Scarlato 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.

In the last year, juries have awarded $289 million, $80 million, and $2 billion to Plaintiffs claiming they were injured by Roundup. In the most recent case, a California jury awarded a couple more than $2 billion in a verdict against Monsanto, which is now owned by Bayer. An Alameda County couple, Mr. and Mrs. Pilliod, were both diagnosed with Non-Hodgkin’s Lymphoma (NHL) as a result of their use of the glyphosate-based herbicide, Roundup. The jury awarded them each $1 billion in punitive damages and an additional $55 million in collective compensatory damages.

In March 2019, a San Francisco jury awarded $80 million to a man who used Roundup and was diagnosed with NHL. In August 2018, another San Francisco jury awarded $289 million to a plaintiff diagnosed with cancer. Bayer is appealing all three verdicts and claims there is no link between Roundup and NHL. More trials are set to take place later this year, including the next one in St. Louis, Missouri.

In 2015, the well-respected International Agency for Research on Cancer published a brief explanation of its findings that glyphosate, the main ingredient in Roundup, is a probable carcinogen to humans. The research, published in The Lancet Oncology, relied on studies conducted on the chemical over the last few decades.

The use of glyphosate has increased substantially over the last two decades with the introduction of genetically engineered crops that can withstand the herbicide. The increased use has resulted in weeds in many regions developing resistance to Roundup, which in turn has led farmers to use more of the product than ever before.

WHAT PERSONS WHO HAVE USED ROUNDUP

AND BEEN DIAGNOSED WITH NON-HODGKIN’S

LYMPHOMA SHOULD DO

If you have suffered an injury as a result of Roundup, you should contact Melissa Hague, Esq., the consumer product defect attorney, at Goldman Scarlato & Penny, P.C, to get more information about this case. Ms. Hague can be contacted at our toll free number: (888) 872-6975 or by email: hague@lawgsp.com. Goldman Scarlato & Penny is dedicated to continuing to litigate all cases where Plaintiffs were harmed by Roundup.

Contact:
Goldman, Scarlato & Penny, P.C.
Melissa Hague, Esq.

8 Tower Bridge, Suite 1025
161 Washington Street
Conshohocken, PA 19428

(888) 872-6975

George Slowinski & Rebuilding America, LLC Allegedly Orchestrated a Fraud Scheme Costing Investors over $17 Million; Rebuilding America Reportedly Collapsed in 2017

George Slowinski & Rebuilding America, LLC, between September 2013 and June 2014, allegedly raised over $20 million from more than 600 investors as part of an offering fraud scheme involving real estate in Chicago, according to an SEC Complaint filed in the U.S. District Court Northern District of Illinois Eastern Division and under review by investor rights attorney Alan Rosca.

By 2017, however, Rebuilding America had purportedly collapsed, according to the aforementioned SEC Complaint, its real estate projects had reportedly failed, the State of Illinois revoked Rebuilding America’s corporate status, and investors allegedly received less than half the promised interest payments and none of their principal investment.

In sum, said investors lost more than $17 million, the Complaint notes. Said securities involved real estate investments in Chicago, and Slowinski and his businesses allegedly primarily used investor funds to purchase, renovate, and develop Chicago residential properties, the Complaint reports.

George Slowinski, age 67, is currently a resident of Texas, but during the period at issue in the Complaint, Slowinski reportedly resided in Homer Glen, Illinois, the SEC notes.

Investor rights attorney Alan Rosca, of the Goldman Scarlato & Penny PC law firm, is investigating activity related to George Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate. Goldman Scarlato & Penny PC lawyers have considerable experience representing investors from Singapore and East Asia in cases arising out of fraudulent real estate investment programs in the United States, and we have represented investors in 62 countries including Singapore, Hong Kong, and Taiwan, among others. Investors who believe they may have lost money in activity related to George Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.

George Slowinski & Rebuilding America, LLC Allegedly Lured Investors with Promised Payouts of 38% in Only Two Years; Slowinski Allegedly Hid Fees & Commissions

Slowinski and Rebuilding America allegedly lured investors by promising to pay out 38% returns in only two years, the Complaint notes. Slowinski, in order to solicit investments from the aforementioned investors, allegedly presented himself as a real estate expert with a successful track record of building and refurbishing residential properties, the Complaint reports.

Slowinski and Rebuilding America also allegedly made statements to investors that the firm would generate such generous returns via the profits of a successful real estate development program, the SEC Complaint reports.

Slowinski and Rebuilding America, specifically, allegedly informed investors that Rebuilding America would purportedly pool investor proceeds to acquire, refurbish, and sell for profit residential real estate primarily located on the South Side of Chicago, the SEC notes.

Slowinski, however, allegedly hid the the fact from investors that between 34% and 42% of every invested dollar would be diverted, upfront, to Slowinski and his partners in the form of undisclosed fees and commissions, the SEC Complaint reports.

Said alleged hidden fees purportedly resulted in Rebuilding America having significantly fewer funds to devote to its real estate projects and would need to achieve unrealistic and outsized margins in an unreasonably short timeframe in order to pay investors the promised returns, the Complaint notes.

Slowinski, the SEC reports, allegedly came to realize that Rebuilding America’s business model was untenable, and that Rebuilding America would allegedly not be able to generate the margins or complete the volume of development projects needed to repay investors.

Despite this realization, however, Slowinski allegedly continued to solicit investors, accept the hidden fees, and use investor moneys to fund his real estate and construction businesses, the Complaint reports.

Slowinski allegedly further compounded his fraud by diverting more than $2.8 million of investor funds to improperly pay for his companies’ payroll, overhead, and cost overruns on other projects, the Complaint states. Said funds had allegedly been earmarked for construction on specific Rebuilding America projects, the SEC notes.

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 are currently investigating George Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate. 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, and 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 George Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate 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.

Robert C. Morgan, Morgan Mezzanine Fund, & Morgan Acquisitions LLC Used Notes Funds in a Ponzi Scheme-like Manner, Engaged in Securities Fraud: SEC Complaint

Robert C. Morgan, Morgan Mezzanine Fund Manager LLC, & Morgan Acquisitions LLC allegedly made false statements to investors in three Notes Funds they promoted and managed, according to the U.S. Securities and Exchange Commission (“SEC”). Morgan and his entities falsely assured investors that their investments would be used to make unsecured subordinated loans, or Portfolio Loans to affiliated Morgan-controlled entities, or Affiliate Borrowers, so that those entities could either acquire, manage, or operate existing multi-family properties, according to a SEC Complaint filed in the Western District of New York and under review by investor rights attorney Alan Rosca.

In reality, Morgan and the companies he controlled, named in the SEC complaint, misused investor money and diverted it to make distribution or withdrawal payments to existing investors, in Ponzi scheme fashion, the SEC alleged.

Investor rights attorney Alan Rosca, of the Goldman Scarlato & Penny PC law firm, is investigating activity related to Robert C. Morgan, Morgan Mezzanine Fund Manager LLC, & Morgan Acquisitions LLC’s alleged offering of a series of fraudulent private securities offerings in Ponzi-like fashion, and is looking to talk to investors. Investors who believe they may have lost money in activity related to Robert C. Morgan, Morgan Mezzanine Fund Manager LLC, & Morgan Acquisitions LLC’s  alleged offering of a series of fraudulent private securities offerings in Ponzi-like fashion are encouraged to contact attorney Alan Rosca or his colleagues, Paul Scarlato and Doug Bench, with any useful information or for a free, no obligation discussion about their options.

Morgan allegedly told investors with money in the Notes Fund operated by Morgan Acquisitions that their investments would be used in a substantially similar manner, according to the aforementioned SEC Complaint.

Morgan also told investors that they would be paid a target return of 11%, and, for the Notes Funds managed by the Fund Manager, Morgan allegedly personally guaranteed the repayment of each Portfolio Loan by each Affiliate Borrower, which he charged interest at a rate sufficient to meet the Notes Funds’ target return to investors, the Complaint states.

Morgan allegedly personally guaranteed the investor notes issued by Morgan Acquisitions to the individual investors for the Notes Funds managed by Morgan Acquisitions, the Complaint states.

Eventually, over 200 individuals and entities located in at least 17 states allegedly made investments in the Notes Funds, many of whom are residents of the aforementioned Western District of New York District, the Complaint notes.

For example, approximately three dozen investors used their retirement accounts to invest directly in the Notes Funds, and a pension plan for an electrical workers union based in this District also invested in the Notes Funds, and many of the Affiliate Borrower properties in which the Notes Funds invested did not generate sufficient cash flow to either service or repay both their secured lenders and the Notes Funds, the Complaint reports.

Morgan allegedly managed the first three Notes Funds through the Fund Manager, while he operated the fourth Notes Fund through another entity, Morgan Acquisitions.

In reality, Morgan and the two companies he controlled were operating a fraudulent investment program, the SEC charged, and engaged in extensive securities fraud.  They diverted and misused millions of dollars of investor money, unbeknownst to investors, according to the SEC’s Complaint.

Robert C. Morgan, Morgan Mezzanine Fund, & Morgan Acquisitions LLC Allegedly Used the Notes Funds as a Single, Fraudulent Slush Fund

Robert C. Morgan, Morgan Mezzanine Fund Manager LLC, and Morgan Acquisitions LLC allegedly used the Notes Funds as a so-called single, fraudulent slush fund, repeatedly using the funds for purposes inconsistent with the representations and disclosures made to investors, according to the aforementioned Complaint.

Morgan, in order to conceal said fraudulent conduct, and to mislead their auditors, allegedly papered these transfers using sham loan documents designed to make the transfers appear legitimate, the Complaint reports.

Morgan also, the Complaint states, allegedly engaged in at least three types of fraudulent conduct with respect to the Notes Funds:

  • •            Using later-formed Notes Funds to facilitate Ponzi scheme-like redemptions of earlier investors and to repay non-performing, maturing loans made by earlier-formed Notes Funds;
  • •            Lacking sufficient funds from the Affiliate Borrowers themselves, and instead of making good on Morgan’s personal guaranty, Defendants have used the Notes Funds, again in a Ponzi scheme-like manner, to make the 11% interest payments back to investors;
  • •            In connection with Morgan’s efforts to repay an inflated, fraudulently obtained loan concerning The Eden Square Apartments in Cranberry Township, Pennsylvania (Eden Square),1 and in order to conceal that fraud, Morgan allegedly improperly used more than $11 million in Notes Fund assets to help pay off the prior loan along with more than $2.6 million in prepayment penalties

The SEC’s case against Morgan is currently pending, and no judgment has been entered as to the charges mentioned in this article.

Securities Lawyers Investigating

The Goldman Scarlato & Penny PC law firm’s investor fraud lawyers, Alan Rosca and his colleagues, are currently investigating Robert C. Morgan, Morgan Mezzanine Fund Manager LLC, & Morgan Acquisitions LLC’s alleged offering of a series of fraudulent private securities offerings in Ponzi-like fashion, and are looking to talk to investors.

The firm represents investors who lose money as a result of investment-related fraud or misconduct and 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, and 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 Robert C. Morgan, Morgan Mezzanine Fund Manager LLC, & Morgan Acquisitions LLC’s  alleged offering of a series of fraudulent private securities offerings in Ponzi-like fashion, and is looking to talk to investors may contact attorney Alan Rosca or his colleagues, Paul Scarlato or Doug Bench, 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.

The Goldman Scarlato & Penny securities lawyers have filed a new case on behalf of two additional UBS YES investors who lost money in the UBS Yield Enhancement Strategy (“UBS YES”) trading program. The claims were filed against UBS, and seek compensation for the investors’ seven-figure losses allegedly suffered in the YES program.

This is the second case filed by the Goldman Scarlato & Penny securities attorney Alan Rosca and his partners on behalf of UBS YES investors. Attorney Rosca and his partners are working with additional UBS Yield Enhancement Strategy investors and are preparing more cases on their behalf, to seek compensation for their investment losses. UBS YES investors may contact investor rights lawyers Alan Rosca, Paul Scarlato, or Doug Bench for additional information or a free evaluation of their recovery options.

UBS advertised its YES program as an option-based trading strategy that sought to increase returns for investors who committed a certain minimum amount of their portfolio (called a “Mandate”) to the YES program, which was typically $2 million. UBS YES investors have started seeing substantial losses in their portfolios last year. The losses continued to go up this year. UBS YES investors who are working with the Goldman Scarlato & Penny lawyers have expressed serious concerns about the direction of their portfolios and the trading strategy.

In their newly-filed case on behalf of the UBS YES investors, the Goldman Scarlato & Penny securities attorneys are seeking compensation for the investors’ losses in view of the trading strategy and risk disclosures surrounding the YES program, among others. The claims focus on a number of important issues, including whether the UBS Yield Enhancement Strategy fully and adequately disclosed to investors important and major risks associated with the YES program and whether the actual trading strategy was consistent with the advertised strategy in the YES marketing materials.

Investors who believe they lost money invested in UBS’ Yield Enhancement Strategy may contact attorney Alan Rosca or his colleagues, Paul Scarlato or Doug Bench, for a free, no-obligation evaluation of their recovery options, at 888-998-0530 or via email at rosca@lawgsp.com.