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Articles Posted in Ponzi Schemes

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The Securities and Exchange Commission (SEC) announced that it obtained a temporary restraining order and filed an emergency enforcement action against Kenneth D. Courtright III and his company, Todays Growth Consultant Inc. The actions by the SEC are related to an alleged “Ponzi-like scheme” that raised more than $75 million from over 500 investors. The Income Store Promised High Returns The SEC’s complaint, unsealed Jan 14, 2020, states that Courtright and Todays Growth Consultant Inc. (TGC), which also did business under the name “The Income Store”, promised investors high rates of return from revenues from websites.The Securities and Exchange Commission (SEC) announced that it obtained a temporary restraining order and filed an emergency enforcement action against Kenneth D. Courtright III and his company, Todays Growth Consultant Inc.

The actions by the SEC are related to an alleged “Ponzi-like scheme” that raised more than $75 million from over 500 investors. Continue reading

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Roger Owens (CRD# 2359204), a broker previously employed by Cetera Advisors LLC in Elkton, Maryland, has been suspended by the Financial Industry Regulatory Authority (FINRA) from acting as a broker. Owens worked for Cetera for the past decade. Owens began in the industry in 1994. His problems began when he started selling unregistered Woodbridge securities. In 2018, he settled a customer complaint for $45,000 arising out of the sale of Woodbridge Mortgage Investment Funds.  Among the allegations in that complaint were (1) violation of federal and state securities laws, (2) breach of contract and fiduciary duty, (3) common law fraud, and (4) negligence. Unfortunately, this complaint was only the tip of the iceberg.Roger Owens (CRD# 2359204), a broker previously employed by Cetera Advisors LLC in Elkton, Maryland, has been suspended by the Financial Industry Regulatory Authority (FINRA) from acting as a broker. Owens worked for Cetera for the past decade.

Owens began in the industry in 1994. His problems began when he started selling unregistered Woodbridge securities. In 2018, he settled a customer complaint for $45,000 arising out of the sale of Woodbridge Mortgage Investment Funds.  Among the allegations in that complaint were (1) violation of federal and state securities laws, (2) breach of contract and fiduciary duty, (3) common law fraud, and (4) negligence. Unfortunately, this complaint was only the tip of the iceberg. Continue reading

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Perry Santillo, an investment manager based in Rochester, New York, has pleaded guilty to participating in a $115 million Ponzi scheme that defrauded at least a thousand investors by convincing them to invest in businesses that had little or no operations. He and his associate Christopher Parris solicited investments in their companies, which were supposedly involved in financial services, insurance, and real estate, including First Nationle Solution LLC, Percipience Global Corp., and United RL Capital Services.Perry Santillo, an investment manager based in Rochester, New York, has pleaded guilty to participating in a $115 million Ponzi scheme that defrauded at least a thousand investors by convincing them to invest in businesses that had little or no operations.

He and his associate Christopher Parris solicited investments in their companies, which were supposedly involved in financial services, insurance, and real estate, including First Nationle Solution LLC, Percipience Global Corp., and United RL Capital Services. Continue reading

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Over the past few years, GPB Capital missed key Securities and Exchange Commission (“SEC”) filing deadlines, announced that some of its financial statements can no longer be relied upon, was raided by the FBI and New York City Business Integrity Commission, had one of its insiders criminally indicted, and is the subject of several civil lawsuits arising from its business practices, including a class action. The only thing missing are formal SEC charges against GPB.Over the past few years, GPB Capital missed key Securities and Exchange Commission (“SEC”) filing deadlines, announced that some of its financial statements can no longer be relied upon, was raided by the FBI and New York City Business Integrity Commission, had one of its insiders criminally indicted, and is the subject of several civil lawsuits arising from its business practices, including a class action. The only thing missing are formal SEC charges against GPB.

Based on the foregoing, it should not be long before the SEC takes action, especially given the gravity of the allegations already looming against GPB in other lawsuits. Continue reading

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A class-action complaint was filed in a Texas federal court on October 25, 2019 against GPB Capital and its principals and affiliates as well as nearly 80 broker-dealers. The basis of the lawsuit is “improper conduct in selling securities . . . at the direction of GPB Capital.” Specifically, the suit alleges that the defendants knowingly made misstatements and omissions in communications with potential investors that they were engaged in a massive Ponzi scheme.A class-action complaint was filed in a Texas federal court on October 25, 2019 against GPB Capital and its principals and affiliates as well as nearly 80 broker-dealers. The basis of the lawsuit is “improper conduct in selling securities . . . at the direction of GPB Capital.” Specifically, the suit alleges that the defendants knowingly made misstatements and omissions in communications with potential investors that they were engaged in a massive Ponzi scheme.

For the most part, the complaint lays out in great detail what we already know: GPB engaged in an asset management strategy that was fraudulent and “destined to fail” and GPB’s scheme was carried out by broker-dealers who blindly recommended the investment in exchange for high commission payments. Per previous articles, the selling broker-dealers ignored the best interests of their clients and pocketed millions of dollars in the process. Continue reading

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The Securities and Exchange Commission (SEC) announced that it has taken emergency action to stop an alleged $6 million Ponzi scheme that took money from at least 55 people, many of whom are seniors.  The SEC obtained a temporary asset freeze and restraining order against Neil Burkholz of Boca Raton, Florida, and Frank Bianco, of Pembroke Pines, Florida and their companies Palm Financial Management LLC and Shore Management Systems LLC.The Securities and Exchange Commission (SEC) announced that it has taken emergency action to stop an alleged $6 million Ponzi scheme that took money from at least 55 people, many of whom are seniors.

The SEC obtained a temporary asset freeze and restraining order against Neil Burkholz of Boca Raton, Florida, and Frank Bianco, of Pembroke Pines, Florida and their companies Palm Financial Management LLC and Shore Management Systems LLC. Continue reading

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GPB Capital has been accused of being a Ponzi scheme, which is a type of fraud where new investor money is used to pay off old investors. Investors in a Ponzi scheme believe they are getting a return from the business they invested in, but they’re really getting another victim’s money. Ponzi schemes are unsustainable because they require more and more new money to pay returns to investors. When new money can’t be found, the scheme collapses, and investors lose their money. Silver Law Group represents investors in securities arbitration claims against stockbrokers who sold GPB.GPB Capital has been accused of being a Ponzi scheme, which is a type of fraud where new investor money is used to pay off old investors. Investors in a Ponzi scheme believe they are getting a return from the business they invested in, but they’re really getting another victim’s money.

Ponzi schemes are unsustainable because they require more and more new money to pay returns to investors. When new money can’t be found, the scheme collapses, and investors lose their money. Silver Law Group represents investors in securities arbitration claims against stockbrokers who sold GPB. Continue reading

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Silver Law Group has filed another FINRA arbitration claim against SagePoint Financial to recover losses for a client who invested $100,000 in GPB Capital on the advice of her broker. Silver Law Group filed the first arbitration claim against SagePoint Financial to recover GPB investment losses, and continues to file claims on behalf of GPB investors with other brokerage firms. The SagePoint investor lives in California and is seeking the securities arbitration to be heard in Los Angeles, California.Silver Law Group has filed another FINRA arbitration claim against SagePoint Financial to recover losses for a client who invested $100,000 in GPB Capital on the advice of her broker.

Silver Law Group filed the first arbitration claim against SagePoint Financial to recover GPB investment losses, and continues to file claims on behalf of GPB investors with other brokerage firms. The SagePoint investor lives in California and is seeking the securities arbitration to be heard in Los Angeles, California. Continue reading

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On November 12, 2019, Scott Silver of the Silver Law Group and co-counsel filed a lawsuit in the Northern District of Florida against Phillip Timothy Howard (Tim Howard), a Tallahassee, Florida attorney and investment fund manager, based on claims that Howard defrauded an investor of more than a half-million dollars as part of a real estate fraud scheme. The suit alleges (1) violation of the federal civil Racketeer Influenced and Corrupt Organizations Act (RICO); (2) fraud in the inducement; (3) breach of fiduciary duty; (4) negligent misrepresentation; and (5) unjust enrichment.On November 12, 2019, Scott Silver of the Silver Law Group and co-counsel filed a lawsuit in the Northern District of Florida against Phillip Timothy Howard (Tim Howard), a Tallahassee, Florida attorney and investment fund manager, based on claims that Howard defrauded an investor of more than a half-million dollars as part of a real estate fraud scheme.

The suit alleges (1) violation of the federal civil Racketeer Influenced and Corrupt Organizations Act (RICO); (2) fraud in the inducement; (3) breach of fiduciary duty; (4) negligent misrepresentation; and (5) unjust enrichment. Continue reading

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On Thursday, November 7, 2019, Scott Silver, managing partner of Silver Law Group, and Jay Berkowitz, CEO and founder of marketing agency Ten Golden Rules, delivered a presentation to members of the South Florida Interactive Marketers Association (SFIMA).On Thursday, November 7, 2019, Scott Silver, managing partner of Silver Law Group, and Jay Berkowitz, CEO and founder of marketing agency Ten Golden Rules, delivered a presentation to members of the South Florida Interactive Marketers Association (SFIMA).

About SFIMA

Founded in 2004, SFIMA is an all-volunteer organization that promotes education, networking, and professional growth opportunities for marketers in southeast Florida. SFIMA holds monthly educational and networking events with an industry speaker. Continue reading

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