Securities Fraud Lawyer Blog
Derrick Stephens, D Stephens Management and Consulting, Lola Korneevets Hit with Cease and Desist Order by California’s Department of Business Oversight
On June 22, 2016 the State of California’s Department of Business Oversight issued a cease and desist order against Derrick Stephens and D Stephens Management and Consulting over allegations they participated in an unqualified offering of securities to California residents. Also named in the desist order was Olena Korneevets aka Lola Korneevets. D Stephens Management and consulting had been the subject of a 2008 desist order issued by the Department of Business Oversight.
The present desist order relates to the offer and sale of investment contracts (securities) with a purported return of over 20%, guaranteed by Stephens. According to the desist order, the investor was told that the only way he wouldnt get his principal returned was if the entire United States financial system collapsed. the investor was also not told about the existence of the 2008 desist order, a material omission of fact. The order also alleges that D Stephens Management and Consulting and Derrick Stephens offered and sold unqualified securities, as the investment contracts were neither qualified for sale, nor exempt from qualification.
As a result of the findings the Commissioner concluded that D Stephens Management and Consulting and Derrick Stephens, as well as the Lola Korneevets violated the California Corporate Securities Laws by selling unqualified securities, and by selling securities by way of material omissions of fact.
The above allegations contained in the Department of Business Oversight’s cease and desist order have not been proven, and the issuance of a cease and desist order represents the Department’s initiation of a formal proceeding in which findings as to the allegations in the cease and desist order have not been made, and does not represent a decision as to any of the allegations contained in the cease and desist order.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery and our securities attorneys have successfully resolved over 1000 investment loss cases over the past 20 years. Recoveries for clients top $40 million. The types of claims we have successfully handled include those involving unsuitable investments (suitability claims), excessive trading or “churning”, misrepresentations and omissions, unauthorized trading, over-concentration of illiquid or overly risky investments, pump and dump scams involving “penny stocks”, direct participation programs (private placements) involving real estate investment trusts (REITS), oil and gas exploration programs, leasing equipment deals and receivable financing, promissory notes whether sold through a broker dealer or as part of the outside business activities of a registered representative, ponzi scheme losses, failure on the part of the broker dealer to perform due diligence, state securities law (blue sky) violations and failure to supervise.
If you have suffered investment losses please call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation