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Articles Posted in Investment Fraud

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NorthstarNorthstar Financial Services (Bermuda) Ltd. is one of the dozens of firms in the US and abroad owned by businessman Greg E. Lindberg, now facing bankruptcy and other litigation. And investors are scrambling to recover their lost investments. Current estimates are that 1,773 Northstar account holders have potential claims totaling $426,825,594. Lindberg bought Northstar in 2018. Even then, Northstar, a Bermuda investment firm founded in the 1990s, was said to be on financially shaky ground, offering investment products much less secure than they were marketed to be. But just months after the acquisition, allegations began to surface that Lindberg was using the assets of his companies like Northstar—insurance and investment companies—to keep his other business interests afloat. Lindberg had allegedly taken $2 billion from his U.S. insurance companies to cover investments (and debts) of the other companies—while untold amounts went to his personal gain. Financial Services (Bermuda) Ltd. is one of the dozens of firms in the US and abroad owned by businessman Greg E. Lindberg, now facing bankruptcy and other litigation. And investors are scrambling to recover their lost investments. Current estimates are that 1,773 Northstar account holders have potential claims totaling $426,825,594. Continue reading ›

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NBC 6 in Miami recently published an article about the alleged MJ Capital Funding Ponzi scheme and how to spot Ponzi schemes and other investment fraud. Silver Law Group represents victims of MJ Capital through a class action lawsuit, and routinely represents victims of Ponzi schemes and investment fraud. The article details the experience of Gilmer Bautista, who was looking for a way to earn extra money when someone on social media told him about MJ Capital Funding, which operated out of a Pompano Beach, FL tax office. Batista was told he could earn incredible monthly returns on his principal by investing in MJ’s merchant cash advance business. He eventually handed over $45,000. He hasn’t gotten his money back and now the SEC accuses MJ Capital of operating a Ponzi scheme. In August, 2021 the SEC put out a press release stating that it had filed an “emergency action and obtained a temporary restraining order, an asset freeze, and the appointment of a receiver to stop an alleged Ponzi scheme and misappropriation of investor proceeds perpetrated by Coral Springs, Florida resident Johanna M. Garcia and two entities she controls.”NBC 6 in Miami recently published an article about the alleged MJ Capital Funding Ponzi scheme and how to spot Ponzi schemes and other investment fraud. Silver Law Group represents victims of MJ Capital through a class action lawsuit, and routinely represents victims of Ponzi schemes and investment fraud. Continue reading ›

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Investment fraud schemes vary, each with its own characteristics, except they share a similar red flag: they look too good to be true. Here are the most common. Ponzi Schemes Named after Charles Ponzi, who one hundred years ago touted he could deliver a 50% return within a matter of months for an international investment, the Ponzi scheme entails using funds from new investors to distribute phony returns to earlier investors. Modern-day Ponzi scams entice new investors to invest in opportunities that promise high returns with little or no risk and consistent return distributions that defy the normal fluctuations of the market. Real Estate Investment Schemes Sponsors of real estate investments sometimes offer the promise of easy and fast returns, using testimonials of others who boast prior extraordinary returns. They are often pitched as retirement planning alternatives to traditional mutual funds, bonds, and other securities. They are also characterized by financing outside of common bank borrowing—"hard money"—and property "flipping," where properties are constantly bought and sold for profit in rapid succession.Investment fraud schemes vary, each with its own characteristics, except they share a similar red flag: they look too good to be true. Here are the most common.

Ponzi Schemes

Named after Charles Ponzi, who one hundred years ago touted he could deliver a 50% return within a matter of months for an international investment, the Ponzi scheme entails using funds from new investors to distribute phony returns to earlier investors. Modern-day Ponzi scams entice new investors to invest in opportunities that promise high returns with little or no risk and consistent return distributions that defy the normal fluctuations of the market. Continue reading ›

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Vipshop Holdings, a Chinese e-commerce company has sued Goldman Sachs and Morgan Stanley in New York accusing both companies of utilizing inside information to dump blocks of shares of two companies under Archegos Capital Management earlier this year after the firm defaulted on margin calls in March of 2021. Vipshop accuses both firms of knowing in advance that Archegos’ collapse was imminent, long before the information became public. In order to minimize their losses, the firms sold their shares prior to the news of the Archegos collapse. By doing so, the firms both avoided losses they would have suffered had they waited. Most of the shares sold by the firms were from two companies: Baidu Inc., a large Chinese tech company specializing in artificial intelligence (AI), Farfetch Ltd, an e-commerce company based in London that sells high-end luxury goods from boutiques around the world. Goldman Sachs and Morgan Stanley sold off these stocks between March 22, 2021, and March 29, 2021. Both firms knew that once the news became public that Archegos was unable to meet the margin call, they would be required to sell their stock in both Baidu Inc. and Farfetch Ltd. at a substantial loss. By selling large blocks of the two company’s stocks ahead of time, both firms avoided these losses, at the expense of other investors.

Vipshop Holdings, a Chinese e-commerce company has sued Goldman Sachs and Morgan Stanley in New York accusing both companies of utilizing inside information to dump blocks of shares of two companies under Archegos Capital Management earlier this year after the firm defaulted on margin calls in March of 2021. Continue reading ›

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The Securities and Exchange Commission (SEC) is investigating GWG Holdings $2 billion L Bond, according to GWG’s annual filing in November, 2021 for the previous year. GWG Holdings (GWGH) is a Texas-based financial services firm that offers alternative investments, life insurance, and other services. The company has missed important SEC filing deadlines, and has not yet filed financial statements for the first 3 quarters of 2021, causing Nasdaq to threaten to delist the company. The company had previously declined to comment when asked about an SEC investigation. Now they confirm that the commission is conducting an investigation and has subpoenaed information related to the company’s products, L Bonds, and accounting. GWG stated that it is currently not able to raise money, is losing money, and that the SEC’s investigation is delaying its business plans and could damage its reputation and result in fines and legal costs. A report from an external auditor said that GWG’s internal controls over its financial reporting showed insufficient accounting policies and led to restating financial statements. GWG says it is cooperating with the investigation and that the SEC also asked about their financial reporting consolidation with Beneficient Company Group LP.The Securities and Exchange Commission (SEC) is investigating GWG Holdings $2 billion L Bond, according to GWG’s annual filing in November, 2021 for the previous year.

GWG Holdings (GWGH) is a Texas-based financial services firm that offers alternative investments, life insurance, and other services. Continue reading ›

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The SEC has found that two businesses that were alleged to invest in acquiring and leasing real estate to cannabis companies are frauds. The three defendants who used two crowdfunding websites to raise capital for the alleged real estate businesses are: Robert Samuel Shumake, Jr., of Bloomfield Hills, Michigan, the alleged “ringleader” with multiple criminal convictions, including two felonies involving financial crimes and on probation Nicole T. Birch, a solo licensed attorney in Georgia with a personal relationship to Shumake Willard L. Jackson, of Houston, Texas, the CEO and sole director of 420 Real Estate All falsely represented themselves to investors, as well as omitted Shumake’s previous criminal record and other important facts to investors in connection with the crowdfunding offerings. They then redirected thousands of dollars from investor funds to different accounts for their own personal benefit. The SEC has found that two businesses that were alleged to invest in acquiring and leasing real estate to cannabis companies are frauds. The three defendants who used two crowdfunding websites to raise capital for the alleged real estate businesses are: Continue reading ›

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Silver Law Group’s Coral Springs headquarters serves as home base for many of our attorneys and support staff. Scott Silver, managing partner of Silver Law Group, is licensed to practice in Florida and New York and is proud to establish a leading securities and investment fraud law firm in Coral Springs. Centrally located between Palm Beach and Miami, our attorney’s have easy access to the federal courts throughout south Florida. We represent investors in securities and investment fraud cases to recover losses due to stockbroker misconduct, fraud, and Ponzi schemes. Our work is frequently featured in the Palm Beach Post, Sun Sentinel and other Florida publications and we are proud to help ponzi scheme victims throughout Florida. Our firm takes most cases on a contingency fee basis, meaning clients don’t have to pay us up front and nothing is owed unless we recover your money for you. If you have investment losses, call us toll free at (800) 975-4345 or email ssilver@silverlaw.com. Silver Law Group helps investors in south Florida and around the country. We have satellite offices in Boca Raton and New York, and our main office is in Coral Springs, Florida. Scott Silver, Silver Law Group’s managing partner, is a graduate of the University of Miami Law School. A popular guest lecturer, Scott frequently speaks at Law Schools, trial bar functions and elsewhere about preventing Ponzi schemes. Scott currently serves as Chairman of the American Association of Justice Chair for Securities and Financial Fraud.Silver Law Group’s Coral Springs headquarters serves as home base for many of our attorneys and support staff. Scott Silver, managing partner of Silver Law Group, is licensed to practice in Florida and New York and is proud to establish a leading securities and investment fraud law firm in Coral Springs. Continue reading ›

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Scott Silver was interviewed by The Palm Beach Post for an article about Seeman Holtz, a Boca Raton insurance company accused of swindling over 1,000 investors out of hundreds of millions of dollars with the sale of unregistered promissory notes. Seeman Holtz is alleged to be a Ponzi scheme, is unable to pay its obligations, and has liabilities that exceed its assets. The company is now under the control of a corporate monitor and Scott Silver’s firm, Silver Law Group, represents investors who purchased the promissory notes, many of whom are South Florida-based retirees. The Florida Office of Financial Regulation has investigated Seeman Holtz and filed a lawsuit in Palm Beach County Circuit Court. Co-founder Marshal Seeman, chief financial officer Brian Schwartz, and Seeman Holtz and related companies are accused of misconduct such as securities fraud.Scott Silver was interviewed by The Palm Beach Post for an article about Seeman Holtz, a Boca Raton insurance company accused of swindling over 1,000 investors out of hundreds of millions of dollars with the sale of unregistered promissory notes.

Seeman Holtz is alleged to be a Ponzi scheme, is unable to pay its obligations, and has liabilities that exceed its assets. The company is now under the control of a corporate monitor and Scott Silver’s firm, Silver Law Group, represents investors who purchased the promissory notes, many of whom are South Florida-based retirees. Continue reading ›

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Bitcoin: it’s the virtual currency based on blockchain technology. It’s rising, falling, trading, and the “wave of the future,” depending on who you talk to. Started in 2009 as an international alternative currency, a growing number of businesses are accepting bitcoin as a standard method of payment. PayPal has also begun allowing customers of their cash accounts to buy, sell, and hold Bitcoin and three other cryptocurrencies in their own accounts. One of the many ways people buy and use use Bitcoin is as an investment vehicle. This includes the purchase of a futures contract strictly for Bitcoin. These contracts are considered commodities, and fall under both the Securities and Exchange Commission and the Commodities Futures Trading Commission. The SEC and the CFTC recently issued an investor alert to inform the public about funds trading in bitcoin futures. Some investors may decide to invest in bitcoin futures as a way getting into cryptocurrency in a small way. In this press release, both agencies emphasize that any cryptocurrency investment is speculative, and could rise or fall quickly. It’s important to consider your risk tolerance before investing in any investment, due to the potential for losing the entire amount. Bitcoin is particularly volatile, because of the up-and-down nature of its price. The underlying “spot” or cash Bitcoin market also adds the possibility of fraud and manipulation.  Bitcoin: it’s the virtual currency based on blockchain technology. It’s rising, falling, trading, and the “wave of the future,” depending on who you talk to. Started in 2009 as an international alternative currency, a growing number of businesses are accepting bitcoin as a standard method of payment. PayPal has also begun allowing customers of their cash accounts to buy, sell, and hold Bitcoin and three other cryptocurrencies in their own accounts. Continue reading ›

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Silver Law Group is representing clients who invested in Seeman Holtz promissory notes, which were sold primarily to senior investors. The company has not paid the insurance-policy backed notes when they matured. On Friday, June 11, 2021, partner and co-founder Eric Holtz died by suicide in California. In a press release, the company announced Holtz’s death, but denied that it was related to the pending lawsuits. The suits were filed on June 7th, and company was notified of the lawsuits on June 14th. The company had previously claimed it could not repay investors due to “financial problems.” Seeman Holtz has recently auctioned its property and casualty insurance business, Seeman Holtz Property & Casualty. Additionally, public records state that Seeman Holtz received $4,269,400 in PPP funds on April 7th, 2020. "Our clients were told to invest every dollar they had in the world with these investments. I've spoken to investors who had from $100,000 to $10 million invested with Seeman Holtz and they are panicking," said Scott Silver, Silver Law Group’s managing partner.Silver Law Group is representing clients who invested in Seeman Holtz promissory notes, which were sold primarily to senior investors. The company has not paid the insurance-policy backed notes when they matured.

On Friday, June 11, 2021, partner and co-founder Eric Holtz died by suicide in California. In a press release, the company announced Holtz’s death, but denied that it was related to the pending lawsuits. The suits were filed on June 7th, and company was notified of the lawsuits on June 14th. Continue reading ›

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