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Articles Posted in Investment Fraud

Two people have been charged with running a Ponzi scheme connected to the cattle business that raised around $650 million from victims across the country.  The alleged Ponzi schemers, revealed Tuesday, May 11, 2021, by an unsealed federal indictment in Colorado, are Reva Joyce Stachniw, 69, of Galesburg, Illinois, and Ron Throgmartin, 57, of Buford, Georgia. In 2020, a third man, Mark Ray, resident of Denver, was charged by criminal information in the scheme.  According to the indictment, beginning around early 2017 and continuing through early 2019, victim-investors were directed to wire money into several bank accounts, primarily a checking account associated with an Illinois-based business called RM Farm & Livestock LLC. Victims were also directed to make payments directly to purported business associates but who were in fact other victim-investors. “False and fraudulent pretenses” were also used to solicit money for a Colorado marijuana business controlled by Stachniw, Throgmartin, and Ray, Universal Herbs LLC, the indictment says.  Silver Law Group is a national securities and investment fraud law firm which represents Ponzi scheme victims in claims against the Ponzi schemer and any third parties who materially participated in the fraud or are otherwise liable under the law.Two people have been charged with running a Ponzi scheme connected to the cattle business that raised around $650 million from victims across the country.  The alleged Ponzi schemers, revealed Tuesday, May 11, 2021, by an unsealed federal indictment in Colorado, are Reva Joyce Stachniw, 69, of Galesburg, Illinois, and Ron Throgmartin, 57, of Buford, Georgia. In 2020, a third man, Mark Ray, resident of Denver, was charged by criminal information in the scheme. Continue reading ›

You’ve probably seen this statement in fine print on many investment-related documents and websites:  “Past performance does not necessarily predict future results.”  And it means exactly that—just because something performed well previously does not mean that it will perform that well in the future. That’s the nature of all investments.  Because investments and investment accounts are highly complex, it’s vital to understand not only the investment, but how it’s being presented and in what context. You must understand the context of the performance claim before considering investing or working with a particular broker dealer. Companies are required to provide detailed financial information which can reasonably be relied on by investors.  Unfortunately, to frequently, companies are misreporting their financials or prior success to bolster its performance or stock price.You’ve probably seen this statement in fine print on many investment-related documents and websites:

“Past performance does not necessarily predict future results.”

And it means exactly that—just because something performed well previously does not mean that it will perform that well in the future. That’s the nature of all investments. Continue reading ›

On Friday, May 13, 2022 the SEC (Securities and Exchange Commission) sued StraightPath Venture Partners LLC and its three founders in federal court alleging the Florida firm raised over $410 million with fraudulent promises to investors about private companies that may hold IPOs (initial public offerings). The civil complaint was filed in Manhattan and seeks the appointment of a receiver to stop fraud at the firm as well as an asset freeze. SEC Alleges StraightPath Made Ponzi-Like Payments The SEC’s complaint alleges that StraightPath sold its investments by describing them as a way for Main Street investors to buy into the exclusive pre-IPO shares in highly-sought after companies like cryptocurrency exchange Kraken and meat-free burger manufacturer Impossible Foods. But according to the SEC, StraightPath in many cases did not have the shares it claimed to. It is also alleged that the company commingled investor and firm assets and made Ponzi-like payments to certain investors.On Friday, May 13, 2022 the SEC (Securities and Exchange Commission) sued StraightPath Venture Partners LLC and its three founders in federal court alleging the Florida firm raised over $410 million with fraudulent promises to investors about private companies that may hold IPOs (initial public offerings). Continue reading ›

Las Vegas attorney Matthew Beasley was shot by FBI Special Agents who went to his house to interview him regarding his alleged involvement in a $300 million Ponzi scheme.  Though shot in the chest and shoulder, Beasley refused to surrender and repeatedly confessed to his involvement in the scheme, Assistant U.S. Attorney Tony Lopez of the District of Nevada said in court.  49-year-old Matthew Wade Beasley was arrested and charged with assaulting a federal officer with a deadly weapon. Beasley made an initial appearance in federal court on March 8, 2022.  Allegations in the criminal complaint state that FBI Special Agents went to a home in Las Vegas on March 3, 2022 to interview Beasley for an ongoing investigation.  According to a press release from the Department of Justice “When agents knocked on the glass front doors, Beasley appeared with part of his body obscured. After an agent pulled back his suit jacket to show his FBI badge, Beasley then stepped into complete view with a gun pointed at his own head. When agents instructed Beasley to drop the gun, Beasley instead pointed it at the agents in a sweeping motion — causing one or more agents to discharge their firearm and striking Beasley.”  An FBI SWAT team “had to forcefully enter the home and bring him out,” Lopez said.  Beasley was released from the hospital. His lawyer sought house arrest, but a judge ordered Beasley detained without bond because Lopez said Beasley was a flight risk with significant assets including at least four homes, luxury cars, and an RV.Las Vegas attorney Matthew Beasley was shot by FBI Special Agents who went to his house to interview him regarding his alleged involvement in a $300 million Ponzi scheme.

Though shot in the chest and shoulder, Beasley refused to surrender and repeatedly confessed to his involvement in the scheme, Assistant U.S. Attorney Tony Lopez of the District of Nevada said in court. Continue reading ›

Through a press release, the Commodity Futures Trading Commission (CFTC) announced the filing of an enforcement action against five individuals and five companies with misappropriation and violations of registration in connection with a scheme involving foreign currency exchanges (“forex”.) The CFCT filed the complaint in the U.S. District Court for the Southern District of Florida on January 28, 2022.Through a press release, the Commodity Futures Trading Commission (CFTC) announced the filing of an enforcement action against five individuals and five companies with misappropriation and violations of registration in connection with a scheme involving foreign currency exchanges (“forex”.) The CFCT filed the complaint in the U.S. District Court for the Southern District of Florida on January 28, 2022. Continue reading ›

So-called “romance scams” proliferate, with both women and men being taken for millions of dollars every year. The Commodity Futures Trading Commission (CFTC) has issued a press release on the topic of romance scams that cultivate a “relationship” and then move in the direction of investing in a “great opportunity” as part of a “couple.”  With two out of five couples meeting online, people of all ages are more than likely in a relationship with someone they met through an app, on social media, or somewhere else in cyberspace. While online dating has increased the pool of available singles, it’s not without problems.  People interested in a relationship only touch a button or swipe to see multiple options for your next date. But it’s precisely that ease that makes online dating dangerous and expensive. In romance scams, where someone befriends another to convince them to send money. Anyone of any age can find themselves in this situation, especially if they are comfortable using dating apps. So-called “romance scams” proliferate, with both women and men being taken for millions of dollars every year. The Commodity Futures Trading Commission (CFTC) has issued a press release on the topic of romance scams that cultivate a “relationship” and then move in the direction of investing in a “great opportunity” as part of a “couple.” Continue reading ›

GWG Holdings is trying to avoid bankruptcy by looking for emergency financing following the resignation of its auditor, accounting problems, and missed debt payments to L Bond investors, according to an article in the Wall Street Journal.  Silver Law Group currently represents GWG L Bonds investors, and may be able to help you recover your L Bonds losses. Please contact us at 800-975-4345 for a no-cost, confidential consultation.  GWG L Bonds  GWG Holdings (GWGH) is a Dallas, Texas-based financial services company that offers life insurance and alternative investments. In 2021, GWG missed financial reporting deadlines, which caused NASDAQ to threaten to delist the company. The SEC is investigating GWG Holdings.GWG Holdings is trying to avoid bankruptcy by looking for emergency financing following the resignation of its auditor, accounting problems, and missed debt payments to L Bond investors, according to an article in the Wall Street Journal.

Silver Law Group currently represents GWG L Bonds investors, and may be able to help you recover your L Bonds losses. Please contact us at 800-975-4345 for a no-cost, confidential consultation. Continue reading ›

Since its inception, multiple financial products have appeared for investors to get into cryptocurrency. Recently, Investor.gov published a bulletin describing the risks of interest bearing crypto accounts.  Digital-based online currency, or cryptocurrency, is one of the hottest new investments around. But because it’s so new, not even seasoned investors necessarily understand everything about this online-only investment.  It was launched in 2009 as a digital currency not backed by any government nor accepted in many parts of the world as legal tender. But Bitcoin and others like it are run by a decentralized authority. Bitcoin is created, traded, distributed, and stored by way of a decentralized ledger system called a “blockchain.”Since its inception, multiple financial products have appeared for investors to get into cryptocurrency. Recently, Investor.gov published a bulletin describing the risks of interest bearing crypto accounts.

Digital-based online currency, or cryptocurrency, is one of the hottest new investments around. But because it’s so new, not even seasoned investors necessarily understand everything about this online-only investment. Continue reading ›

On Friday, February 18, 2022, Silver Law Group and co-counsel filed a class action complaint was filed against GWG Holdings and several of its principals to recover losses suffered by investors who purchased GWG’s “L Bonds”. The Complaint was filed in the United States District Court for the Northern District of Texas and alleges violations of the federal securities laws.  Among other things, the Complaint states that: GWG’s L Bonds were designed to enrich GWG’s principals “accomplished through Defendants’ false and misleading statements and omissions . . .” “The [L Bonds] now lack value on account of GWGH’s inability to service them.” “As a result of Defendants’ wrongful acts and omissions, and the steep decline in the value of the L Bonds, Plaintiffs and other Class members have suffered significant losses and damages, which they now seek to recover through this action.” With The Class Action On File, Silver Law Group Continues Its Investigation Against Financial Advisors Silver Law Group is continuing to investigate GWG’s sales of “L-Bonds” to investors nationwide. Many investors alleged L Bonds were sold as offering investors higher yields than typical publicly traded bonds and as being backed by bundled portfolios of life insurance policies purchased on the secondary market. Unlike publicly traded securities, L Bonds are illiquid, speculative alternative investments that do not have a public market. L Bonds were sold by a network of broker-dealers across the United States. On January 27, 2022, the Wall Street Journal quoted Scott Silver highlighting that “many of our clients are retail investors who bought the bonds after hearing the products were safe and would offer a comfortable income stream for their retirement but that they were shocked to learn that their money was used to pay old investors while the company was under SEC investigation.”On Friday, February 18, 2022, Silver Law Group and co-counsel filed a class action complaint against GWG Holdings and several of its principals to recover losses suffered by investors who purchased GWG’s “L Bonds”. The Complaint was filed in the United States District Court for the Northern District of Texas and alleges violations of the federal securities laws. Among other things, the Complaint states that: Continue reading ›

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