McKinney Texas Man Pleads Guilty in Bitcoin Securities Fraud Case

September 21, 2015-McKinney, Texas

Trendon T. Shavers, 33,  admitted to running a Ponzi scheme involving bitcoin, a virtual currency, according to the Wall Street Journal. Sentencing is scheduled for February 3, 2016.

According to the release, Shavers controlled about 7% of the virtual currency and had raised more the 764,000 bitcoins through Bitcoin Savings & Trust, a website he operated from his home. Bitcoin currently trades at over $225 per bitcoin. Shavers promised investors returns of up to 7% a week, using money raised from early investors to pay later investors giving the impression of a profitable company. Shavers was ordered to pay over $40 million by the SEC.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

FEF Distributors and First Eagle Investment Management Charged by SEC with Making Improper Payments

September 21 2015- Washington DC

First Eagle Investment Management and FEF Distributors was charged by the US Securities and Exchange Commission with improperly using mutual fund assets to pay for the marketing and distribution of fund shares, according to a SEC Press Release. 

The SEC alleges that First Eagle and FEF Distributors unlawfully caused First Eagle Funds to pay $25 million for distribution costs rather than making the payments from the company’s assets.

“First Eagle and FEF inappropriately used money belonging to the shareholders of the funds to pay for services clearly intended to market the funds and distribute their shares,” said Andrew J. Ceresney, Director of the SEC’s Enforcement Division.  “Unless part of a 12b-1 plan, the firm should bear those costs, not the shareholders.”

“Mutual fund advisers have a fiduciary duty to manage the conflict of interest associated with fund distribution, namely whether to use their own assets or to recommend to their fund’s board to use the fund’s assets to distribute shares,” said Julie M. Riewe, Co-Chief of the SEC Enforcement Division’s Asset Management Unit.  “First Eagle breached that fiduciary duty by using the funds’ assets rather than its own money to pay for distribution and failed to provide accurate information to the funds’ boards.”

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Wellington, FL / Grosse Pointe Shores, MI- Man Convicted on $50 Million Ponzi Scheme

September 3, 2015- Miami, Florida

An FBI Press Release reports that Joseph P. Zada, 57, of Grosse Pointe Shores, Michigan, and Wellington, Florida, was found guilty of 15 counts of mail fraud in a $50 million Ponzi scheme lasting over 10 years.

The victim investors were told that their money was being invested in oil and currency trading through a top-secret board headquartered in London. Actually the money was never invested, but was spent by Zada on jets and mansions in Florida and Michigan.

Ada faces up to 20 years for each of the 15 counts. Sentencing is set for later this year.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Collins Street Bakery-Corsicana- $16M Embezzlement Nets Ten Year Sentence for Former Exec.

September 16, 2015- Dallas/Corsicana, Texas

The FBI announced that Sandy Jenkins and his wife, Kay Jenkins, were sentenced on felony charges of embezzlement for stealing $16 million dollars from the Collins Street Bakery in Corsicana, Texas, between 1998 and 2013, when the theft was discovered.

Sandy Jenkins was controller of Collins Street Bakery. According to the release, the Jenkins enjoyed their ill gotten gains by taking over 200 trips on private jets costing over $3 million to destinations including Santa Fe, New Mexico, Aspen and Napa. They also purchased 38 vehicles including a Mercedes, a Bentley and a Porsche.

Sandy Jenkins was sentenced to 120 months in federal prison. His wife Kay was sentenced to five years probation, must complete 100 hours of community service and must submit a formal apology to Collins Street Bakery.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Grand Prairie Texas Men Indicted On Fraud Charges Related to Foreign Currency Trading

September 17, 2015- Dallas Texas

The Texas State Securities Board (TSSB) announced the indictment of Rodney Lee Wagner and Roger Harvey Wagner of Grand Prairie, Texas, for wire fraud.

According to the indictment, Wagner and Wagner operated a purported forex trading company GID Group, Inc. and lured investors by promising a return of 200% over just a few weeks. Instead of investing the money, the Wagners spent it to repay earlier investors in classic Ponzi Scheme fashion.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

South Florida Men Named in Alleged Commodities Scam by Regulators

September 17, 2015

The U S Commodity Futures Trading Commission (CFTC) announced  the filing of an enforcement action in US District Court for the Southern District of Florida against:

  • Mintco LLC of Delray Beach, FL
  • Stuart Rubin of Ft. Lauderdale, FL
  • Richard Q. Zimmerman of Wellington, FL

The CFTC alleges in their complaint that since July 2011, Mintco, Rubin and Zimmerman have unlawfully solicited sales of precious metals such as gold, silver, platinum and palladium, from low net worth individuals using the Mintco website and cold calling.

According to the complaint, Mintco charged commissions and fees as high as 37.5% of the investment and failed to inform customers that in excess of 80% of customers failed to earn a profit on their investments.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Garrett Ahrens, Former LPL Financial Broker Receives Notice of Investigation by Securities Regulator

September 18, 2015- Lafayette, Lousiana

The Investment News reports that Garrett Andrew Ahrens, a broker ranked as one of the top advisers in Louisiana by Barron’s, with assets under management of $775 million, has parted ways with LPL Financial after receiving a Wells Notice announcing an investigation by the Financial Industry Regulatory Authority (FINRA).

The Investment News article quotes Mr. Ahrens as stating that the move was separate and aside from the FINRA inquiry and that the timing was coincidental and unfortunate.

According to FINRA records, Ahrens is not currently registered with  any broker dealer after briefly registering with Mutual Securities, Inc. who discharged him in August 2015, reporting “Unable to affiliate in a supervisory capacity due to pending wells notice, dated August 4, 2015. “

The FINRA investigation is focussed on the alleged misuse of consolidated reports provided to clients potentially violating FINRA Rules 2210(D)(1) and 2010.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870