UPDATE FEBRUARY 2016– Cecil Franklin Speight sentenced to 42 months. Link to US Department of Justice release.
Washington, DC-September 23, 2014
The Securities and Exchange Commission (SEC) charged Jonathan P. Flom and James L. Schmidt, II, both Florida based attorneys, for their roles in a fraudulent securities offering involving Cecil Franklin Speight and his company International Stock Transfer, Inc.
Speight and his company were charged with fraud in July. Flom and Schmidt were arrested in a parallel criminal action brought by the U.S. Attorney’s Office for the Eastern District of New York.
The SEC alleges that Flom and Schmidt received wire transfers of funds from investors who solicited by cold callers using boiler room tactics and promising high rates of return. The fact the funds were being wired to a licensed attorney gave the scheme credibility and the appearance of safety.
Flom and Schmidt kept 2% of the raised funds and the balance went to Speight who used it for personal expenses or to make Ponzi type distributions to investors to add the appearance of legitimacy.
If you invested in International Stock Transfer on the recommendation of your broker, call to learn how you may be able to recover damages.
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.
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