Category Archives: FBI

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

Gerald Cocuzzo -Former Newbridge Securities Broker-Pleads Guilty to Fraud

November 2016- Boca Raton, FL

The US Attorney’s Office announced that former Newbridge Securities stock broker Gerald Cocuzzo, pleaded guilty to securities fraud in connection with the fraudulent marketing of ForceField Energy, a publicly traded company with the symbol FNRG.

According to the release between 2009-2015, Cocuzzo and others manipulated the price of ForceField a purported worldwide distributor of LED lighting products causing losses of $131,000,000.

Cocuzzo faces up to 20 years in prison.

See this for more information on Gerald Cocuzzo. 

Cocuzzo was employed by Newbridge Securities from 12/2014-5/2016 and prior to that was employed by IAA Financial from 9/2009/1/2015.

If you suffered losses due to recommendations by Gerald Cocuzzo to purchase risky investments, including Forcefield Energy (FNRG), contact us to learn how you may be able to collect damages from the brokerage firm that employed Cocuzzo.

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

FBI Warns of Scams Targeting Seniors in North Texas

July 29. 2016- Sherman & Denison, Texas

The Dallas division of the Federal Bureau of Investigation (FBI) sent out a warning about a scam which targets senior citizens in north Texas.

According to the FBI news release, callers with foreign accents identify themselves as FBI agents and tell the victim that they have won some kind of lottery and that they owe taxes on the winnings, taxes that must be paid prior to receiving the prize.

Such calls are fraudulent as the FBI has no affiliation with any lottery and does not call members of the public demanding money.

Victims are advised to hang up on the caller.

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

Miami, FL-DOJ Charges Two With Securities Fraud

July 2016-Miami, Florida

The Department of Justice announced that stock promoters Daniel McKelvey, 49, of Foster City, CA and Jeffrey L. Lamson, 51, of El Dorado Hills, CA, have been charged with conspiracy to commit securities fraud in connection with a fraudulent scheme to register shell companies with the SEC, issue shares in the companies that they and other co-conspirators secretly own and then sell the share to the investing public at a profit.

McKelvey and Lamson face up to five years in prison and a fine up to $250,000.

In April 2015, the Miami Regional office of the SEC filed a related civil action against McKelvey and Lamson and 8 other individuals involved in the scheme to offer and sell penny stock in undisclosed companies, which the SEC describes as a ‘blank check’ companies.

Others named in the previously filed civil action are:

  • Steven Sanders, Lake Worth, FL
  • Alvin Mirman, Sarasota, FL
  • Edward G. Sanders, Coral Springs, FL
  • Scott F. Hughes, Duluth, GA

Four others who acted as figurehead officers and directors settled SEC charges in separate administrative proceedings:

  • Edward T. Farmer, Sarasota, FL
  • William J. Gaffney, Cumming, GA
  • Kevin D. Miller, Alpharetta, GA
  • Ronald A. Warren, Peachtree Corners, GA

They consented to SEC orders without admitting or denying the findings that they violated the antifraud, reporting, recordkeeping, and internal control provisions of the federal securities laws. They are barred from serving as an officer or director of a public company and from participating in penny stock offerings, and they must disgorge ill-gotten gains plus prejudgment interest.

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

Miami Resident John Utsick Pleads Guilty In $200M Fraud Scheme

June 15, 2016-Miami, Florida

The US Attorney’s Office for the Southern District of Florida announced that John Utsick, 75, of Miami Beach, FL, pled guilty for his role in a $207 million mail fraud scheme. He faces up to 20 years in prison.

According to the press release, Utsick has agreed that he caused losses of over $200 million and has agreed to pay restitution of over $169 million. Utsick was extradited from Brazil in December 2014. His scheme used two companies The Entertainment Group Fund and Worldwide Entertainment to perpetrate the fraud.

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

Carol Rushton-Former Regions Bank VP In Tyler, TX-Sentenced for Banking Violations

June 14, 2016- Tyler, Texas

The US Attorney’s Office for the Eastern District of Texas announced the sentencing of Carol D. Rushton to 36 months of federal probation, a fine of $30,000 and 108 hours of community service. In addition Rushton must notice all current and future clients of her conviction.

Rushton, who was a vice president of Regions Bank in Tyler, TX,  pleaded guilty to structuring transactions for the purpose of evading federal reporting requirements.

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

Ronald Earl McCullough-Raleigh, NC-FBI Offers Reward

charlotte_061616_1June 16. 2016-Charlotte, North Carolina

The FBI announced a $5,000 reward for assistance in locating Ronald Earl McCullough who, by portraying himself as a religious leader, was able to over a million from investors who were led to believe they were participating in an exclusive foreign currency exchange group.

McCullough fled after he was charged with conspiracy, wire fraud, mail fraud, engaging in monetary transactions and aiding and abetting.

The North Carolina Secretary of State’s office is cooperating with the FBI, along with the IRS and the US Postal Service. Call 1-800-225-5324.

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