Articles Posted in Disciplinary Actions

Update on Lawsuit against Summit Trust Company

On October 27, 2015 the SEC announced that it settled a lawsuit against Kevin Brown and George  Brown for their roles in the fraudulent, unregistered securities offering by Summit Trust Company.

IRA custodians like Summit Trust allow individuals to make their own investment decisions with their IRA funds.  Investors looking for non-traditional investments  can roll “qualified” pretax funds from a 401k or a pension plan into a self-directed IRA.  Once the funds are in the account the investor “directs” the IRA custodian to purchase an investment, which is usually memorialized by a promissory note, a contract or shares of stock.  Once a year the IRA custodian will contact the investment sponsor and ask for a value on the investment, and will report that value to the IRS to ensure that the investor isn’t charged taxes on the investment.

Update on Lawsuit against Provident Trust Group

A lawsuit filed in the US District Court for the Northern District of California against Provident Trust Group in May, 2013 was voluntarily dismissed by the lawyer for the Plaintiff in September, 2013. Named as a defendant in the lawsuit was IRA custodian Provident Trust Group.

Among the allegations against Provident Trust were that they lent an “air of legitimacy” to ponzi schemes and other scams, and knew or should have known that their company was being used by fraudsters to fleece unsuspecting retirees.

Update of lawsuit against Vantage Retirement Plan IRA.

A lawsuit filed in the US District Court for the Northern District of California was dismissed by the court for failure to state a claim. A court of appeals upheld the dismissal in December, 2015.  Named as a defendant in the lawsuit was IRA custodian Vantage Retirement Plan IRA.

Among the allegations against Vantage Retirement Plan IRA were that they lent an “air of legitimacy” to ponzi schemes and other scams, and knew or should have known that their company was being used by fraudsters to fleece unsuspecting retirees.  After working its way through several courts, including a court of appeal, the case was finally dismissed in late 2015.

Update on lawsuit against Equity Trust Company.

A lawsuit filed in the US District Court for the Northern District of California was dismissed by the court for failure to state a claim. A court of appeals upheld the dismissal in December, 2015.  Named as a defendant in the lawsuit was IRA custodian Equity Trust Company.

Among the allegations against Equity Trust Company were that they lent an “air of legitimacy” to ponzi schemes and other scams, and knew or should have known that their company was being used by fraudsters to fleece unsuspecting retirees.  After working its way through several courts, including a court of appeal, the case was finally dismissed in late 2015.

Update on lawsuit against New Direction IRA.

A lawsuit filed in the US District Court for the Northern District of California was dismissed by the court for failure to state a claim. A court of appeals upheld the dismissal in December, 2015.  Named as a defendant in the lawsuit was IRA custodian New Direction IRA.

Among the allegations against New Direction IRA were that they lent an “air of legitimacy” to ponzi schemes and other scams, and knew or should have known that their company was being used by fraudsters to fleece unsuspecting retirees.  After working its way through several courts, including a court of appeal, the case was finally dismissed in late 2015.

Update on complaint against the Entrust Group.

A complaint filed in the US District Court for the Northern District of California was dismissed by the court for failure to state a claim. A court of appeals upheld the dismissal in December, 2015.  Named as a defendant in the complaint was IRA custodian The Entrust Group.

Among the allegations in the complaint against the Entrust Group were that they lent an “air of legitimacy” to ponzi schemes and other scams, and knew or should have known that their company was being used by fraudsters to fleece unsuspecting retirees.  After working its way through several courts, including a court of appeal, the case was finally dismissed in late 2015.

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the sales of Pension Funding LLC by registered representative Kenneth Anderson of IBN Financial Services of Massena, NY.  Our firm has received calls from investors who were solicited by Kenneth Anderson of IBN Financial 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 purchased the Pension funding contracts may have recourse against the agents who solicited their investments, including Kenneth Anderson of IBN Financial Services.

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.

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.