Author Archives: FLSecurities
Boxer Floyd Mayweather, Jr. Sues Over $4 Million Investment Loss
Floyd Mayweather, Jr. (“Mayweather”), a five-division world champion boxer with a 43-0 record, has filed suit in Miami-Dade Circuit Court against his former investment advisers, Jeff Rubin and Pro Sports Financial, Inc., to recover more than $4 million lost in an Alabama real estate investment, allegedly recommended by Rubin. According to the Complaint, in… Read More »
Oppenheimer Settles With SEC For $35 Million
OppenheimerFunds, Inc. has agreed to pay $35 million to settle charges by the Securities and Exchange Commission (“SEC”) that it made misleading statements to investors about the Oppenheimer Core Bond Fund (Symbol: OPIGX) and Oppenheimer Champion Income Fund (Symbol: OPCHX) (collectively “Funds”). An investigation by the SEC found that OppenheimerFunds didn’t adequately disclose the… Read More »
Quantek Asset Management Settles With SEC for $3.1 Million
Miami-based Quantek Asset Management LLC (“QAM”) has settled claims by the Securities and Exchange Commission (“SEC”) that it falsely represented that its managers had personally invested in the Quantek Opportunity Fund (“Quantek Fund”). The Quantek Fund is a $1 billion Latin America-focused hedge fund. The SEC claims that, contrary to statements made to prospective… Read More »
Lerner Loses the First Apple REIT Arbitration
On Monday, a Financial Industry Regulatory Authority (“FINRA”) arbitrator ruled in favor of customers, Joseph Graziose and Florence Hechtel (collectively “Customers”), and ordered David Lerner Associates, Inc. (“Lerner”) to pay them one-hundred cents on the dollar for the Apple REIT Nine they purchased from Lerner. The Customers were ordered to return the Apple REIT… Read More »
Fraudster Sentenced to 12 Years in Prison
Michigan resident, Alan James Watson (“Watson”), was sentenced to 12 years in prison in connection with a scheme to defraud more than 900 investors out of $40 million through his investment club, Cash Flow Financial LLC (“CFF”). As a part of his sentence, he was ordered to forfeit more than $36 million in ill-gotten… Read More »
Former NAPFA Chairman Indicted For Fraud and Money Laundering
Mark Spangler (“Spangler”), the former chairman of the National Association of Personal Financial Advisors (“NAPFA”) has been indicted by a federal grand jury for investment advisor fraud, wire fraud and money laundering. The indictment alleges that Spangler stole $47.7 million of his clients’ money and invested it in two technology companies the he or… Read More »
Before You Invest: Pre-IPO Stock Investments
Due to the media hype of the upcoming IPO of Facebook and other private companies, there is an increased interest in investing in these companies. Access to a private company’s stock prior to its IPO is very limited. Fraudsters are exploiting this limited supply and tremendous demand by offering “pre-IPO” shares of these companies,… Read More »
JP Morgan to Pay $1.9 Million in Auction Rate Securities Case
A Financial Industry Regulatory Authority (“FINRA”) arbitration panel has awarded Ashley Furniture Industries, Inc. (“Ashley”) $1.9 million against JP Morgan Securities, LLC (“Morgan”) for losses in auction rate securities (“ARS”). In its claim filed in August 2010, Wisconsin-based Ashley had sought actual damages of over $26 million. Ashley alleged that Morgan misrepresented ARS as… Read More »
SEC Charges A.L. Waters Capital With Creating Phony Private Placements
Arnett L. Waters, a Massachusetts resident, and his broker-dealer, A.L. Waters Capital LLC (“Waters Capital”), have been charged by the Securities and Exchange Commission (“SEC”) with creating bogus private placements – Port Huron Partners LP and Port Huron Partners II LP (collectively “Port Huron Funds”) – and bilking investors out of at least $780,000…. Read More »
Former Medical Capital Exec Pleads Guilty
Joseph J. Lampariello, former president of Medical Capital Holdings, Inc. (“Med Cap”), pleaded guilty on Monday to wire fraud and failure to file a tax return. Lampariello, who earned $6.2 million from the sales of Med Cap notes, faces up to 21 years in federal prison, and an order to pay $49 million in… Read More »