Articles Posted in Investigations

Future Income Payments information for investors

In the past several years multiple state finance and securities regulators have filed enforcement actions against Henderson, Nevada based Future Income Payments LLC to stop them from targeting pensioners – many of them military veterans- with a pitch to “cash out” their pensions and receive a lump sum payment.  Some of these pension advance transactions are structured like loans, charging above market rate interest rates.  The decision to sell the rights to a pension at a discount is fraught with perils, and could be one of the worst mistakes a retiree ever makes.

On the other side of the Future Income Payments transaction are investors who were contacted by Registered Investment Advisors or brokers looking for investors to “fund” the “loans” to the Pension recipients.  Investing in these transactions is full of risks, including the lack of transparency, high commissions and fees, and an inability to collect in the event of default.

Sheaff Brock Put Option Income Strategy Caused Losses

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Sheaff Brock a registered investment advisor that offered a put option income strategy that it described as a conservative way to earn income.

Sheaff Brock described the program as a conservative “income generator”, which belied the actual risks associated with the strategy that targeted stocks with increased volatility.  Sheaff Brock represented that the strategy would stack small monthly gains from its proprietary strategy, which would amount to a six percent annual return, without incurring substantial risk.

Peter Lewis Morgan Stanley broker TSLA option trading investigation

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Peter Lewis a registered representative affiliated with the Morgan Stanley office in Summerlin, Las Vegas, Nevada.

The pending customer dispute that gives rise to this investigation concerns a number of high risk option trades in TSLA Motors that Peter Lewis made for a customer while at Morgan Stanley in the Fall of 2016.  TSLA is a growth stock that has enjoyed significant price appreciation over the past several years.  The pending customer complaint describes an environment where Mr. Lewis was particularly negative on TSLA Motors, and made sizeable “bearish” options transactions in the customer’s account.  These trades resulted in significant losses.

Alvery Bartlett investigation into oil and gas private placements

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Alvery Bartlett a registered representative formerly with Berthel Fisher and Company, now with Arête Wealth Management.

The pending customer dispute that gives rise to the investigation concerns a number of high risk private placements into oil and gas investments, as well as private equity, including Nytrox and the Alvery Bartlett Hedge Fund. Mr. Bartlett recommended these illiquid, high commission investments that were supposed to provide income and a safe return of principal.  Instead, due to an over concentration into these programs, the customer suffered substantial losses.  Among the investments at issue are: Atlas Oil and Gas, Noble Access Fund, PDC Energy, Strategic Energy Income Fund, and Waveland Drilling Partners.

The Woodbridge Group of Companies filed for bankruptcy in December, 2017 after the Securities and Exchange Commission opened an investigation against them for, among other things, selling unregistered securities.  As a result of these two proceedings, Woodbridge Group’s assets have been frozen, and investors face a long delay before they begin receiving their investment principal back.

In the meantime, investors should consider their options; If the SEC and multiple state securities regulators are correct, that the Woodbridge Group sold unregistered securities through misrepresentations, then investors may have a remedy they can pursue while the bankruptcy proceedings unfold in Delaware.

Not only does Woodbridge Group and its “control persons” (including Robert Shapiro) have liability for selling unregistered securities, but so does anyone who materially aided in the transactions, such as the salespeople, and possibly, the company that employed the salespeople.  All states have securities laws that prohibit the sale of unregistered securities, and investors should look to their state’s securities laws to pursue claims and recover funds lost in their Woodbridge Group transactions.

Todd Seeholzer a representative for Allegis Investment Services in Logan, Utah recommended a risky options strategy that caused substantial losses on August 21, 2015. We presently represent several clients who were solicited by Todd Seeholzer to open accounts with Allegis Investment Services.

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Todd Seeholzer, a licensed FINRA registered representative from Logan Utah who is affiliated with Allegis Investment Services.

Seeholzer presented Allegis’ clients with a complex options strategy despite not having the proper license to recommend options transactions.  The options strategy failed spectacularly on August 21, 2015, when the transaction at issue cost Allegis’ clients $39 million.  The net credit spread strategy that caused the losses was a high risk strategy suitable only for aggressive investors.

Madyson Capital Asset Freeze; Receiver Appointed

UPDATE: February 2, 2018. DORA disciplines brokers Dennis Farrah and Mark Raezer over Madyson sales. The Law Office of David Liebrader files claims, opens investigation.

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Madyson Capital Management after the firm and its founder Joseph Ryan were charged by the Colorado Securities Commissioner with engaging in securities fraud and misleading investors by using money raised to support Ryan’s extravagant lifestyle.

Goldfield Oil Goldfield McKenzie 7 Drilling Fund sued in Clark County District Court.

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of the Las Vegas based company Goldfield Oil Goldfield Mckenzie 7 Drilling Fund.

The underlying matter concerns the solicitation by Goldfield to invest in their Goldfield McKenzie 7 Drilling Fund through the use of cold calling of prospective investors.

Broker Barry Connell charged by SEC, terminated from Morgan Stanley, Barred by FINRA

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Barry Connell, a FINRA registered representative from Chester New Jersey, previously affiliated with Morgan Stanley in Ridgewood New Jersey.

Barry Connell has been FINRA licensed to sell securities since 1998, and has been affiliated with Morgan Stanley since 2008.  Prior to that Connell worked for UBS Financial Services in Pearl River, NJ.

Ricardo Cabrera investigation over Senior Secured Note sales.

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Ricardo Cabrera, a licensed FINRA registered representative from Las Vegas, Nevada, affiliated with G.F. Investment Services and Wittman Capital Management of Henderson, Nevada.

Ricardo Cabrera has been FINRA licensed to sell securities since 2009, and has been affiliated with G.F. Investment Services since September, 2013.  Prior to that Cabrera worked for Centaurus Financial and Ameriprise Financial out of offices these firms maintained in Las Vegas.