The Growing Problem With Sales of Unregistered Securities

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Recently I have been busy working to recover losses for a large number of investors who lost money in unregistered investments offered by Woodbridge and Future Income Payments or FIP. In many cases these investments were recommended by insurance agents who were not licensed to sell securities, and did not perform adequate due-diligence on these… Read more »

FIVE QUESTIONS TO ASK BEFORE YOU INVEST

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Whether you’re a first-time investor or have been investing for many years, there are some basic questions you should always ask before you commit your hard-earned money to an investment. Question 1: Is The Seller Licensed? Research shows that con-artists are experts at the art of persuasion, often using a variety of influence tactics tailored… Read more »

Top Ten Ways To Avoid Losing Money In A Financial Scam*

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Every week Utah residents lose money by investing with friends, family or neighbors – people they knew and trusted. Investment fraud is a big problem here in Utah, largely because our close-knit communities are a prime target for “affinity fraud.” Our state has a long history of financial scams and Ponzi schemes, many of which have… Read more »

The Falls Event Centers; A Financial Scam Targeting Medical Professionals

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Editor’s Note: This is an excerpt from a guest post that I wrote for The White Coat Investor, a fantastic website that provides financial tips and education to medical professionals.   I have represented a number of doctors and dentists over the years in disputes with their stockbrokers and in Ponzi schemes and investment fraud cases. My… Read more »

Another Scam Comes to Light: Future Income Payments or FIP

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Editor’s Note: I have been contacted by a number of individuals who invested in Future Income Payments or FIP through Utah-based Live Abundant, which is referenced in the article below.  This article appeared in the Wall Street Journal today and has a pretty good summary of the FIP situation.  Spoiler alert: it’s not good. Private… Read more »

The Problem With Private Placements

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One of the biggest problems I am seeing these days is private placements (also called alternatives or non-registered investments) that are sold to accredited investors through a private placement memorandum or PPM.  Because these investments are not registered with the SEC the information that you can get about them is far more limited, and can… Read more »

Does Disclosure of a Ponzi Scheme in the PPM make it legal? No.

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Dee Randall ran one of Utah’s largest Ponzi schemes, raising more than $72 million from approximately 700 investors nationwide. On June 18, 2014 Utah Attorney General Sean D. Reyes’ office filed a criminal information and affidavit of probable cause against Randall for multiple counts of securities fraud and other related charges.  Randall, a resident of Kaysville, Utah, was charged… Read more »

Utah Division of Securities Releases Top Investor Threats for 2013

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SALT LAKE CITY, Utah – Keith Woodwell, Director of the Utah Division of Securities, announced today that the Division has released a new list of Top Investor Threats facing consumers with its partner, the North American Securities Administrators Association (NASAA). The 2013 list examines offers, practices, and investment scenarios that are being aggressively marketed to… Read more »

CLIENT ADVISORY: SEC Rule 506 Private Securities Offerings Can Now Be Publicly Advertised

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Here is a summary of the new SEC’s new Rule 506 written by Mark Cotter, who is the chair of our firm’s Corporate Finance and Securities Law Section. Summary. In a fundamental shift in federal securities laws, new U.S. Securities and Exchange Commission (“SEC”) rules will permit companies seeking to raise capital in Rule 506 private… Read more »

Not All Ponzi Schemes Are Prosecuted by the SEC

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This week a Utah man named Kenneth Tebbs was sentenced to six and a half years in federal prison for operating a $49 million Ponzi Scheme in Salt Lake City. According to the article in the Salt Lake Tribune the investment scheme victimized more than 100 investors, many of them elderly people, family and friends…. Read more »