Category Archives: Ponzi Schemes

How to Recover Losses on United Development Funding IV (UDF IV)

March 2017

Investors who have suffered losses on United Development IV (UDF IV)  may be able to recover damages through FINRA arbitration,  a dispute resolution process that is much more expedient than typical court litigation.

UDF IV , a real estate investment trust (REIT) was marketed to investors as an entity that would generate income by investing in low risk loans and the profits from the sale of real estate.

FBI RAIDS UDF OFFICES-In February 2016, the FBI raided the home office of UDF in Grapevine, Texas, seizing documents and records. Subsequently UDF IV disclosed receipt of a grand jury subpoena by the company and its executives. In addition the company disclosed receipt of a Wells Notice from the SEC.  Share trading was suspended and share prices fell to $3.20.

TENDER OFFER @ $1.25 SHARE-SCM Special Fund and Lemon Creek Advisers, affiliates of Mackenzie Capital Management and Sutter Capital Management have recently offered to buy up to 1.6 million shares of UDF IV for $1.25 a share. This offer, which constitutes just over 5% of the outstanding shares expires May 5th, 2017.

UDF IV has not filed any quarterly financial documents since November 2015 and has advised the SEC that it will not meet its deadline for the 2016 year end report. Kyle Bass, a hedge fund manager and founder of Hayman Capital Management has publicy accused UDF of operating a ‘Ponzi like real estate scheme’.

Investors who suffered losses as a result of investing in UDF IV may be able to recover damages. Contact us for a no cost consultation 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

Patrick O. Howard, Optimal Economics Capital Prnrs, Howard Capital Named in Regulatory Action-Dallas, TX

February 2017-Dallas, Texas

Patrick O. Howard and two companies he controls, Optimal Economics Capital Partners and Howard Capital Holdings were named in a complaint filed by The Securities and Exchange Commission (SEC) on February 14, 2017.

The complaint alleges that since February 2015, Howard and his companies have raised about $13 million from 119 investors through the fraudulent offer and sale of interests in three private funds which promised returns ranging from 12%-20% annually. Investors were also promised minimal risk.

According to the SEC only about $7.5 million was actually used for investment purposes and the balance was used on Howard’s personal expenses. The SEC alleges that Optimal Economics made Ponzi payments using to new investor funds to pay earlier investors.

Victims who made investments as a result of a recommendation from a registered financial advisor may be able to recover damages through FINRA arbitration. 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

Michael Anthony Collins Sentenced to 15 Years for Securities Fraud-Alice, TX

August 2016- Alice, Texas

 

Michael Anthony Collins pleaded guilty to stock fraud, theft and money laundering and was sentenced to 15 years on each count in Jim Wells County State District Court, according to a release from the Texas State Securities Board (TSSB). The sentences will run concurrently. Follow this link to the indictment. 

In addition Collins was ordered to pay $3 million in restitution. Through his company Collins Financial Group, Collins sold ‘investment plans’ from 2012-2015. Investors were led to believe their money would be used to trade stocks, when in fact he was operating a Ponzi scheme, using money from later investors to pay ‘returns’ to early investors to give the impression of a going concern.

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

William Risinger of Round Rock Texas Sentenced to 160 Months on Ponzi Scheme

May 2016-Austin, Texas

The US Attorney’s Office for the Western District of Texas reports that William Risinger of Round Rock, Texas, was sentenced to 160 months in federal prison in connection with a $4.5 million Ponzi Scheme through his company RHM Exploration, LLC.

US District Judge Sam Sparks ordered a judgment of $3.7 million against Risinger and three years supervised release following the prison term.

In April 2016 Risinger was arrested for violating terms of his bond  when he traveled to Las Vegas and lost half a million gambling.

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

Robert Hahn, Former Tyler Insurance Agent, Sentenced to 36 Months

April 2016-Tyler, Texas

Robert Hahn, a 64 year old former Tyler insurance agent was sentenced to serve 36 months in federal prison for wire fraud and money laundering , according to the U.S. Attorney’ s Office for the Eastern District of Texas. 

In November 2015, Hahn admitted to operating a Ponzi Scheme from January 2007 until February 2015. He collected over $5 million from the mostly doctor investors who believed they were earning an annual interest rate of 20% 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

Terry Joe Bagwell Investigation Update-Pruco Securities-Birmingham, Alabama

April 6, 2016  – Birmingham, Alabama

FINRA Sanction

In February 2015, Terry Joe Bagwell   entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he was the designated supervisor of a registered representative who sold approximately $8.4 million in unapproved investments that were part of an ongoing Ponzi scheme. In addition, FINRA alleged that Bagwell personally participated in some of the unapproved private transactions.

Bagwell has been permanently  barred from engaging in certain activities.

Alabama Securities Commission Investigation

In November 2015 the Alabama Securities Commission initiated an investigation after receiving reports from Alabama residents who had purchased variable life insurance policies through MetLife/Bagwell who transferred the policies to Pruco and then, upon Bagwell’s recommendation, sold the Pruco policies and invested in a purported “hedge fund”. SC 2015-0023

Customer Disputes

Bagwell has been named in 9 customer disputes that have been resolved. Settlement amounts were as high as $1 million. There are currently 3 cases pending against Bagwell alleging fraud and the sale of unregistered securities.

Bagwell who is not currently registered. He was registered with Pruco Securities from 10/2011-3/2015 and prior to that, was registered with MetLife Securities from 4.2002-10/2011.

If you have losses in an account handled by Terry Joe Bagwell, contact us to learn how you may be able to recover damages from his former employer.

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

Daniel and Matthew Rivera Ponzi Scheme-Robbins Lane

March 30, 2016

The U.S. Securities and Exchange Commission charged Daniel Rivera and his brother Matthew Rivera, and their company, with a $2.7 million Ponzi scheme targeting elderly and unsophisticated investors.

Investors were led to believe that they would share in the profits of Robbins Lane, a Pennsylvania real estate venture. In reality Robbins Lane had no real estate. In classic Ponzi scheme fashion money from early investors was used to pay distributions to later investors giving the impression of a going concern.

Neither admitting nor denying the charges, they consented to entry of a final judgment and will be disgorging over $2 million.

Copy of the SEC complaint.

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