Category Archives: Precious Metals

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

Boynton Beach, FL Resident Pleads Guilty in Precious Metal Fraud Scheme

June 17, 2015-Palm Beach County Florida

Jeffrey Schuler, 54, of Boynton Beach, Florida pled guilty to one count of wire fraud, in connection with the operation of Fort Lauderdale based Liberty International Financial Services, which he operated with Christopher Anzalone.

Liberty employed brokers that solicited investors nationwide to purchase precious metals, such as gold, silver and palladium. Schuler falsely represented to the brokers that he was actually making precious metal trades for investors. In reality, few trades were made. Of the $4 million raised from investors, less that $200,000 was actually invested in precious metals.

Instead, according to the FBI press release, money was paid old investors (ponzi scheme) and to fund a substantial salary to Schuler.

He faces up to 20 years. Sentencing is scheduled for August 25, 2015.

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

Joseph P. Tufo Arrested on Alabama Securities Fraud Charges

December 23, 2014-Montgomery, Alabama

Robert Broussard, District Attorney for Madison County, Alabama and Joseph Borg, Alabama Securities Commissioner announced the arrest of Joseph P. Tufo of Concord, California for violations of the Alabama Securities Act.

Tufo is being held on a $60,000 bond and faces 20 years imprisonment for allegedly operating a unlawful trading in a gold commodities buy/sell/trade program.

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

First Allied Securities Broker Herbert Kaye Sanctioned by Securities Regulator for Churning Account

September 15, 2014-Delray Beach, Florida-Herbert Leonard Kaye agreed to a fine of $25,000 and a four month suspension to resolve FINRA allegations that he made discretionary trades in a customer’s account without the customer’s prior written approval.

According to the FINRA findings, Kaye traded the account of a 73 year old widow, exercising discretion on over 2,000 trades in equities and exchange traded funds (ETFs), earning commissions and fees of $173,000.

In addition, FINRA found that Kaye recommended that the customer  invest $1.1 million, which was 36% of the account value, in gold and silver investments which resulted in a loss of $620,000. FINRA found this recommendation not suitable in light of the customer’s stated risk tolerance and investment objectives.

FINRA records indicate Kaye is not currently registered. He was previously registered with First Allied Securities from 5/2008-6/2013 .

Rex Securities Law , located in Boca Raton, FL, provides nationwide representation to investors 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

561 391 1900

Five Arrested in South Florida Precious Metal Scam

November 15, 2014-Broward County, Florida- The Sun Sentinel reports that five suspects were arrested in a scheme targeting seniors who believed they were purchasing interests in gold, silver, platinum and palladium for investment.

Those arrested are:

  • John A Cavallo, 39, Jupiter FL
  • Allen Franks, 72, Boynton Beach, FL
  • Colin A Smith, 37, Pompano Beach, FL
  • Danny M Reynolds, 43, Greenville, SC
  • Cheryl Ann Woods, 37, Greenville, SC

Charges against those accused are racketeering  grand theft, fraudulent securities transactions and money laundering.  Robert S. Leier, 59, of St. Paul, Minnesota remains at large.

The Attorney General’s Office reports that the group operated the scheme using these companies:

  • Bowman & Poole
  • Cavallo Consulting Group
  • DMR & BMR Corp.
  • DRBR Financial
  • JD&A Investment Services
  • JDC United Metals
  • Project Insider Development Investments
  • Project Insider

 

Rex Securities Law provides nationwide representation to investors 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

561 391 1900

Rondell Scott Hedrick of North Carolina Convicted in International Precious Metals Scheme

Jacksonville, FL – US Attorney A. Lee Bentley, III, announced that a federal jury found Rondell Scott Hedrick, 48, of North Carolina, guilty of wire fraud involving a purported high yield international investment program.

Hedrick used the web to advertise his expertise in international gold transactions involving mining operations in Mali, North Africa, and Accra, Ghana as well as refinery operations in Dubai, United Arab Emirates. As part of his sales pitch he told potential investors that he  was able to purchase gold at below market prices because he was willing to travel to dangerous locations in Africa. The money he raised was not invested but used for his personal expenses.

Hedrick made the mistake of making this pitch to an FBI informant leading to the situation he finds himself in today.

Rex Securities Law provides nationwide representation to investors 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

561 391 1900