News Category Archives — Securities Fraud Lawyer Blog Published by Securities Fraud Attorney

December 15, 2024

Dustin Aab found liable for $300,000 Judgment

Dustin Aab, a former social media influencer was ordered to pay an investor $308,700 by a Riverside Superior Court Judge on December 13, 2024.

This is the latest judgment against Dustin Aab for failing to repay investors who loaned money to him and his former company Crashem Enterprises. The Law Office of David Liebrader also secured a separate judgment against Mr. Aab in the Clark County (Nevada) District Court in September, 2023. That judgment has been domesticated and is being enforced in California.

Despite holding himself out on social media as a savvy investment professional, Dustin Aab is not licensed to sell securities, real estate or insurance in California. Nor is he affiliated with a broker dealer or registered investment advisor. Investors should always check the license status of individuals they do business with. FINRA maintains a database of people licensed to sell securities, while the California Department of Real Estate, as well as the California Department of Insurance have websites where people considering investing with individuals like “Dustin da Closa” as he refers to himself, can check licensing status.

September 17, 2023

The Law Office of David Liebrader Announces Two Significant Cannabis Wins for Investors

by David Liebrader

The Law Office of David Liebrader is pleased to report $5.3 million in recent judgments and settlements against cannabis industry companies.

With the growth of the legal cannabis industry, unscrupulous operators and scam artists have been plying their trade, luring in unsuspecting investors with promises of outsized returns.

One case involves a $1.8 million judgment obtained in the Monterey County Superior Court against Zabala Farms of Salinas; a mid-size grow operation. The Plaintiff had invested in a Zabala affiliate that sold unregistered securities. The State of California issued a cease and desist order against the subsidiary, which was followed by an administrative action filed by the SEC. The investor was able to use the findings to obtain two judgments, one against the affiliate, and later, a judgment against Zabala Farms of Salinas in the Monterey Superior Court.

May 30, 2020

Leveraged Silver Bullion Investments

by David Liebrader

Leveraged Silver Bullion Investments: Avoiding a Bad Bet

Leveraged silver bullion investments present an unacceptable risk reward choice for investors. Due to excessive costs, interest and fees, an investor is far more likely to lose his entire investment than to break even.

With the recent rise in gold prices, salesmen in an overlooked corner of the investment community have been busy dialing investors for dollars. The gold and silver bullion industry is largely unregulated by state or federal agencies. This regulatory blindspot has permitted the rise of boiler rooms using high pressure sales pitches to sell overpriced gold and silver bullion to unsuspecting investors.

October 25, 2019

George Pidgeon Fund Raise for Francis Capital Management

by David Liebrader

CA Dept. of Business Oversight Settles Claim Over George Pidgeon Fund Raising for Francis Capital Management

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the sales activity of George Pidgeon, a former registered representative with Triple A Partners of Los Angeles, CA. Pidgeon’s activities raising funds for Francis Capital Management were the subject of two regulatory filings by the California Department of Business Oversight and the Department of Corporations.

The pending regulatory filling that gives rise to this investigation is the CA Department of Business Oversight’s settlement agreement with Francis Capital Management dated June 3, 2019 whereby the Commissioner of the Department determined that Francis Capital Management engaged George Pidgeon as an unregistered solicitor/investment advisor who introduced investors to Francis Capital Management’s funds, and compensated the broker dealers with whom Pidgeon was affiliated with for his efforts in raising capital for the firm. The Commissioner also determined that FCM made untrue statements to the Commission concerning Pidgeon’s employment. This settlement follows the June, 2018 filling of a statement in support of an order imposing administrative penalties against Francis Capital Management whereby the facts state that Pidgeon was paid over $300,000 is sales compensation and finder’s fees by FCM.

June 30, 2018

EB-5 Fraud: Practical Advice for Investors

by David Liebrader

EB-5 Fraud is on the rise. From immigration attorneys acting as unregistered broker-dealers to scammers preying on unsuspecting investors the field is a potential trap for the unwary.

In 1990 the US Congress devised the Immigration Investment Program in the hopes of attracting capital to the US from foreign investors. The program came to be known as the EB-5 program. As a means to attract investments Congress offered the potential for Visas, “Green Cards” and residency status to foreigners who agreed to invest at least a million dollars into a business that agreed to employ or continued to employ at least ten full time US workers. The EB-5 program also provided that a $500,000 investment in a “rural area” or an area of “high unemployment” would qualify.

As a result, investments grew around so called “Regional Center Investments” such as hotels, business parks, warehouses or other “economic units” that offered the prospects for job growth.

July 16, 2017

Vincent Mehdizadeh agrees to $12MM settlement with SEC

by David Liebrader

Vincent Mehdizadeh agrees to a ban, and a $12 million fine to settle SEC charges related to Medbox.

In March, 2017 entrepreneur Vincent Mehdizadeh agreed to settle charges brought by the SEC against him and his company Medbox, a legal Marijuana consulting company (now known as Notis Global- ticker symbol NGBL).

According to the complaint filed by the SEC, Mehdizadeh mistated Medbox’s revenues and used sham transactions to give the appearance that the company was profitable. According to the complaint 90% of Medbox’s revenues came from transactions in a company created by Mehdizadeh, and not from legitimate business generated by Medbox. Instead of record revenue, as was claimed, Medbox used a shell company formed by Mehdizadeh to sell company stock, then claimed the proceeds as revenue for Medbox.

June 21, 2017

Corecap Investments Named in Bad Broker Study

by David Liebrader

Corecap Investments was named as a broker dealer that employs a large percentage of registered reps with publicly disclosable incidents.

A study commissioned by Reuters with the assistance of Columbia University Law School identified nearly fifty FINRA registered broker dealers where a large percentage of its brokers had “red flags” on their public disclosures. FINRA requires broker dealers like Corecap Investments, as well as its registered representatives to update their industry record by disclosing information that could be of interest to potential and current customers and members of the public.

These red flags include customer disputes, arbitration claims, regulatory actions taken by FINRA, the SEC or state regulators, civil actions, bankruptcies and terminations after allegations of wrongdoing.

June 21, 2017

Concorde Investment Services Named in Bad Broker Study

by David Liebrader

Concorde Investment Services was named as a broker dealer that employs a large percentage of registered reps with publicly disclosable incidents.

A study commissioned by Reuters with the assistance of Columbia University Law School identified nearly fifty FINRA registered broker dealers where a large percentage of its brokers had “red flags” on their public disclosures. FINRA requires broker dealers like Concorde Investment Services, as well as its registered representatives to update their industry record by disclosing information that could be of interest to potential and current customers and members of the public.

These red flags include customer disputes, arbitration claims, regulatory actions taken by FINRA, the SEC or state regulators, civil actions, bankruptcies and terminations after allegations of wrongdoing.

June 21, 2017

Silber Bennett Financial Named in Bad Broker Study

by David Liebrader

Silber Bennett Financial was named as a broker dealer that employs a large percentage of registered reps with publicly disclosable incidents.

A study commissioned by Reuters with the assistance of Columbia University Law School identified nearly fifty FINRA registered broker dealers where a large percentage of its brokers had “red flags” on their public disclosures. FINRA requires broker dealers like Silber Bennett Financial, as well as its registered representatives to update their industry record by disclosing information that could be of interest to potential and current customers and members of the public.

These red flags include customer disputes, arbitration claims, regulatory actions taken by FINRA, the SEC or state regulators, civil actions, bankruptcies and terminations after allegations of wrongdoing.

June 21, 2017

Great Nation Investment Corporation Named in Bad Broker Study

by David Liebrader

Great Nation Investment Corporation was named as a broker dealer that employs a large percentage of registered reps with publicly disclosable incidents.

A study commissioned by Reuters with the assistance of Columbia University Law School identified nearly fifty FINRA registered broker dealers where a large percentage of its brokers had “red flags” on their public disclosures. FINRA requires broker dealers like Great Nation Investment Corporation, as well as its registered representatives to update their industry record by disclosing information that could be of interest to potential and current customers and members of the public.

These red flags include customer disputes, arbitration claims, regulatory actions taken by FINRA, the SEC or state regulators, civil actions, bankruptcies and terminations after allegations of wrongdoing.