Pension Advance and Income Stream Investments
The Securities and Exchange Commission put out a notice to investors and retirees who engage in transactions involving pension advances and pension income streams.
The SEC is concerned that retirees and investors are entering into these pension advance transactions without the proper information to make informed investment decisions.
The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Pension Funding LLC. Our firm has received calls from investors who were solicited by licensed FINRA brokers to purchase the Pension Funding investments, which have gone into default.
Pension Funding, LLC formerly of Huntington Beach California has been the subject of multiple court actions concerning its business practices. Investors who funded loans to pensioners may have recourse against the agents who solicited their investments.
On March 5, 2015 the State of California’s Department of Business Oversight issued a cease and desist order against Pension Funding LLC; its related companies, Pension Income LLC and U.S. Pension Funding, and its officers, Rex Hofelter and Edward Lichtig.
On February 16, 2016 the Securities and Exchange announced that Wade Lawrence submitted an Offer of Settlement, which the SEC determined to accept. Solely for the purpose of the SEC’s proceedings and without admitting or denying the findings therein, Wade Lawrence agreed to the findings that he made unauthorized trades in high risk, speculative securities in his customers’ accounts.
The complaint alleged that from approximately 2010 through 2013 while employed at Oppenheimer & Company, and later Southwest Securities, both in the Dallas Ft. Worth area, Lawrence fraudulently obtained close to $500,000 from his clients and used the money for personal expenditures.
In a related criminal action, Lawrence plead guilty to fraud, and in January, 2015 was sentenced to thirty six months imprisonment and ordered to pay $1,454,384.48 in restitution.
In November, 2014, the Financial Industry Regulatory Authority (“FINRA”) announced that Bart Ellis of Chicago, IL and formerly associated with Ameriprise Financial had been barred from FINRA membership for making unauthorized trades in his customer’s account.
Ellis had been named in a FINRA complaint alleging that he made unauthorized trades in a client’s account without first discussing the trades with her.
The complaint alleged that Ellis created a false telephone log of entries in an effort to create the appearance that he had discussed the transactions with his client, and that she had authorized the trades. In fact, the hearing panel found that these entries were false, and that the customer did not have any telephone conversations with Ellis on any of the posted dates.
In February, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that David Escarcega of Phoenix, AZ, and associated with Center Street Securities had been barred for his role in selling GWG secured debentures.
On February 29, 2016, a panel of FINRA’s Office of Hearing Officers issued a decision ordering that David Escarcega be barred from association with any FINRA member firm.
The hearing panel found that the GWG Debentures were illiquid, speculative investments involving a high degree of risk, and not suitable for investors that had any need for liquidity before the maturity date.
In July, 2015, a three member FINRA arbitration panel issued a $61,000 binding arbitration award against Legend Securities for conduct related to two of their registered representatives Michael Mariani and Jason Klabal.
The underlying matter involved allegations that Legend Securities permitted a customer’s account to be churned, breached its fiduciary duty towards the Claimants, and failed to supervise brokers Mariani and Klabal. The award included reimbursement of $15,000 for expert witness fees and $5,000 as sanctions for discovery violations.
As a result of this award The Law Office of David Liebrader has opened an investigation into Legend Securities.
John Schemetti, an insurance agent operating in Virginia Beach, VA and Las Vegas Nevada was hit with three civil judgments totaling $1,673,000 in Clark County, NV District Court in August, 2015.
The judgments stem from John Schemetti’s role in an investment scam known as Velcor LLC. Schemetti was an officer for Velcor, and along with his partner, Reza Baharimehr, raised money from Nevada investors.
Velcor LLC, purportedly owned an interest in an Ecuadorian cocoa plantation, and also purchased life settlement contracts. Schemetti and Baharimehr targeted elderly people with promises of large returns from the Velcor investment. Two of the victims were elderly widows who invested a substantial portion of their life savings into Velcor in what were totally unsuitable transactions.
Unregistered financial advisor Reza Baharimehr (aka Mohamed Baharimehr) of Los Angeles, CA and Las Vegas, NV was hit with three judgments in Clark County NV District court for his role in a scam targeting elderly people. The Law office of David Liebrader represented the Plaintiffs in all three cases.
Reza Baharimehr who holds no securities licenses, sold shares in a company called Velcor LLC, a company that purportedly invested in a cocoa planation in Ecuador, as well as life settlement contracts.
Baharimehr targeted an elderly, terminally ill man who was in hospice, for an investment into the Velcor program. After the man died, his heirs sued to recover the losses. Baharimehr agreed to pay the heirs the full amount of the loss beginning in March 2015, but defaulted on his obligations, forcing the heirs back into court to obtain a judgment. In July, 2015 the court entered judgment against Baharimehr and his business partner John Schemetti for $238,000.
On February 3, 2016 the SEC charged Portfolio Advisors Alliance, Inc. an New York broker dealer with violations of the United States securities laws, specifically section 10(b) of the Securities Exchange Act of 1934.
The SEC’s complaint stems from a private placement offering of securities in a company known as American Growth Funding II, LLC (“AGF II”)
American Growth Funding was formed to provide high-risk, high-interest loans to businesses that had difficulty obtaining credit from conventional lenders.
In March, 2015, a three member FINRA arbitration panel sitting in Jackson, Mississippi issued a $1,292,000 binding arbitration award against Lanis Noble and Stifel Nicolaus & Co. for violations in their Ridgeland, MS office.
The underlying matter involved allegations that Lanis Noble and Stifel Nicolaus mismanaged a customer account, breached fiduciary duties, failed to follow industry rules and standards and violated Mississippi and Federal Securities Laws. The causes of action pertained to Noble and Stifel’s’ use of margin in the customer’s account as well as the purchases of SunLife and ManuLife variable annuities, and of a Friedman Billings Ramsey REIT.
After an eleven day arbitration hearing from December 2014 through February, 2015, the arbitration panel rendered their decision and awarded the customers $1,292,342 in compensatory damages, and $250,000 in attorney’s fees against Stifel Nicolaus and Lanis Noble.
Securities Fraud Lawyer Blog