Category Archives: False/Misleading Research Reports

SEC Files Action vs. FL and TN Oil and Gas Deal Scammers

August 2017-Ft. Lauderdale, FL/ Gallatin, TN

The Securities and Exchange Commission charged two men from Tennessee and a man from Florida with allegedly defrauding investors by false promises of high returns from an oil drilling investment.

The SEC Complaint, filed in Savannah, GA, alleges that David R. Greenlee and David A. Stewart, Jr. orchestrated a $15 million scheme through a network of salesmen who raised money from investors who were promised profits of 15-55% per year for decades on wells that would use enhanced recovery techniques to boost production.

Neither Greenlee nor Stewart was registered to sell investments and they routinely used fake names , like “Dave Johnson”, when speaking with investors in order to hide their past criminal records. According to the SEC, only a small fraction of the money raised was actually used as intended.

The SEC alleges that Richard “Ric” Underwood helped draft brochures and oversaw a boiler room sales team of telemarketers in Florida who solicited victims nationwide.

The U.S. Attorneys Office for the Southern District of Georgia has instituted criminal charges in a parallel action.

Companies listed by the SEC as being used in the scam include:

  • Tennstar Energy
  • Black Gold Resources (BRG)
  • Southern Energy Group

Other individuals involved, but not named defendants, per the SEC complaint are Robert Dorrance, 60, of Gallatin, TN, and Jared G. Forrester, 33, of Glasgow, KY.

If you invested in this scheme at the suggestion of a licensed stock broker , you may be able to recover damages from the broker’s employer. Call for details.

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.

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

FRANKLIN REYNOLDS -FORMER G.A. REPPLE BROKER- DISCLOSES SETTLEMENT OF CUSTOMER DISPUTE – DAYTONA BEACH, FL

April 2017- Daytona Beach, FL

The FINRA records of  Franklin Reynolds, (CRD #1366983) a  stockbroker who is currently registered with The Strategic Financial Alliance disclose a customer dispute that was settled.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In  FINRA case 14-03417  a customer of G. A. Repple & Co. alleged damages of $172,343 for, unsuitability, failure to conduct due diligence and failure to supervise in connection with an investment in a real estate security.   That case was settled $85,000.

Reynolds has been employed by The Strategic Financial Alliance since 1/2015. Reynolds was employed by G.A. Repple  5/1996 – 12/2014.     

If you have questions about an account handled by Franklin Reynolds, call to learn about your options.

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

Losses On Servergy, Inc ? – Recovery Options for Investors

April 12, 2016-Fort Worth, Texas

The Securities and Exchange Commission (SEC) filed fraud charges against McKinney, TX based Servergy, Inc. , William E. Mapp III, Caleb J. White and Texas attorney general Warren K. Paxton, Jr. Link to complaint. 

The SEC alleges that from November 2009-September 2013 $26 million was raised through private offerings by Servergy Inc. from investors who were duped into believing that Servergy was generating sales on new groundbreaking server technology when, in reality,  the server technology was behind that of competitors and there were not any sales.

In a February 2013 Private Placement memorandum, Servergy’s co-founder and then CEO William Mapp, III, led investors to believe their new server, the Cleantech-1000, was revolutionary and in high demand, Servergy hired WFG Investments of Dallas to raise $20 million in that offering.

According to the SEC complaint Servergy made numerous misrepresentations and omissions in the private placement memorandum about the new server to investors. In addition, the SEC alleges that investors were misled as to the purported sales figures leading investors to believe the company was generating income.

Brokerage firms have a duty to investigate the companies they are recommending. Thorough due diligence would likely have revealed the false information being disseminated by Servergy and its promoters.

If you invested in Servergy, Inc.  you may be able to recover damages from WFG Investments or the brokerage firm where you purchased Servergy, Inc. Call to discuss your options.

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

Update on Recovery of Reef Oil & Gas Investment Losses

Reef Oil and Gas of Richardson, Texas, has been sponsoring energy related investments for many years.   These investments are marketed by many different brokerage firms nationwide.

Investors who have suffered losses  on any of the offerings sponsored by the Reef Oil and Gas Companies  may be able to recover damages from the brokerage firm who sold the investment.

Brokers have a duty to make suitable recommendations to investors.  Brokers are also required to perform an independent due diligence investigation of the proposed investment before making a recommendation. The investigation is intended to help determine not only if the investment is suitable taking into account the investor’s age, health and level of financial sophistication, but also to determine if the proposed investment is being fully and truthfully represented by the sponsor.

Here is a partial list of recent Reef offerings:

  • Reef 2015 Oil & Gas Opportunity Fund
  • Reef 2015 Income Fund
  • Reef Bakken Bear Cat Drilling Fund
  • Reef 2012-A Private Drilling Fund
  • Reef 2011 Private Drilling Fund
  • Reef 2010 Drilling Fund
  • Reef 2009 Drilling Fund
  • Reef 2007-2009 Drilling Program
  • Reef Oil & Gas Drilling & Income Fund
  • Reef Oil & Gas Income & Development Fund III
  • Reef Oil & Gas Income & Development Fund IV

If you have suffered losses on any of the Reef Oil and Gas offerings, contact us to learn about your options for recovery.

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

 

Willis-Stafford Named in Cease and Desist Order by S. Carolina Securities Commissioner

July 14, 2015-Columbia, South Carolina

The Securities Commissioner of South Carolina entered a Cease and Desist Order against Prospect, Kentucky-based  Willis-Stafford Corporation in connection with a proposed offering of stock for the construction and operation of a film sound stage in Williamsburg County, South Carolina.

The S. Carolina Securities Commissioner found that the Willis-Stafford website (www.Willis-Stafford.com ) which solicited investors and  listed an address in Salters, South Carolina, constitutes an offer of securities under the South Carolina securities act. Many of the representations about the proposed operation contain false or misleading statements according to the Order.

Order to Cease and Desist

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

Ohio Division of Securities Issues 2015 Third Quarter Bulletin-Civil & Criminal Securities Actions

July 6, 2015- Columbus, Ohio

The Ohio Division of Securities publishes a Securities Bulletin quarterly summarizing recent changes to securities rules and laws in the State of Ohio, reporting on administrative actions and criminal securities matters. The 2015 3rd quarter bulletin can be accessed here.

Recent Administrative Actions: 

  • Eric T. House, CRD No. 1984306-Division found that House engaged in fraudulent, manipulative or deceptive practices in connection with the sale of investment contracts issued by French Manor Properties through Brenda Ashcraft. A Cease and Desist Order was entered.
  • Edward I. Campbell and Rosewood Consulting– A Notice of Intent to Issue Cease and Desist was entered alleging that Campbell solicited and sold Chinese Reorganization Gold Loan Bonds to two Ohio investors without proper licensure and registration.

Upcoming Criminal Trials

  • State v Bernard Minneyfield-Franklin County
  • State v Steven P. Moore-Delaware County
  • U.S. v Geoffrey Nehrenz-U.S. District Court, N. Ohio

Criminal Cases

  • U.S. V Brenda Ashcraft– Case 1:13-CR-00093- Ashcraft pleaded guilty to wire fraud, securities fraud, money laundering and obstruction of justice in connection with the sale of investment contracts, REITs issued by French Manor Properties.
  • State of Ohio v Peter A. Beck– Beck was convicted of 13 criminal counts, including theft, securities violations and perjury on allegations of defrauding investors through Christopher Technologies.
  • State of Ohio v Peter Wilson– Wilson pleaded guilty to securities fraud and theft in connection with misrepresentations Wilson made to investors who believed their money would be invested in a liquor company.

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

Losses on F-Squared Investments (Good Harbor Financial US Tactical Core & AlphaSector Allocator Select) May be Recoverable

July 8, 2015

F-Squared Investments, Inc, an exchange-traded fund manager,  filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. In December of 2014, F-Squared agreed to a $35 million settlement with the Securities and Exchange Commission to resolve claims that it defrauded investors through false performance advertising related to its flagship product, AlphaSector Allocator Select.

The SEC alleged that when advertising the product, F-Squared based it on a seven year track record for investment strategy options when in fact the product did not exist for that length time period.

At lease one arbitration is presently pending against Wells Fargo Advisers for losses on F-Squared exchange-traded funds, which include:

  • Good Harbor Financial US Tactical Core (GHUAX)
  • AlphaSector Allocator Select

Broker dealers, including Wells Fargo Advisers, have a duty to investigate and perform due diligence on investment products in order to understand the risks associated with the products so that they can explain the risks to their customers when making recommendations. If they fail to adequately investigate a product or if they make unsuitable recommendations , brokerage firms can be held liable for losses.

If you have losses on F-Sqared investments, contact us to discuss you options.

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