Category Archives: Misrepresentation

Linda Deavers Sentenced in $3.5 Million Fraud Scheme

Orlando, FLLinda Deavers, age 61, of Indiana, was sentenced to six years and six months in federal prison for wire fraud and money laundering. In addition, US District Judge Anne C. Conway , ordered Deavers to pay over $3.5 million in restitution and three years of supervised release following her time in prison.

At trial, evidence showed that Deaver’s scheme involved a purported 501 C 3 charitable organization, Angel Annie Humanitarian Trust, LLC, that supposedly would generate large rates of return due to connections she had in Europe. These representations were false and enabled Deavers to raise over $5 million from Florida investors.

She returned $1.8 million to investors and spent the rest on a lavish lifestyle.

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

Swindler Who Preyed Upon Baptist Churchgoers Sentenced to 22 Years

Raleigh, N.C.–Thomas L. Kimmel, 68, was sentenced to 22 years in prison by U.S. District Court Judge James Dever for operating a Ponzi scheme that cost Baptist church goers an estimated $22 million.

Kimmel was hired in 2006 by Sure LIne Acceptance Corp. , the financing are of Automocion, a Smithfield North Carolina car dealership.  He held seminars at Baptist churches to raise money, promoting “risk free” investments that were supposedly backed by cars and purchase agreements.

Kimmel was allegedly paying church pastors 1% commissions to steer congregation members his way. Kimmel was earning 10% of the money raised from the mostly retired group of victims who were promised 12% returns. In reality Sure LIne was losing money and eventually collapsed causing many victims to lose their life savings.

Kimmel talked to parishioners about how to live debt free by employing biblical principles.

“Kimmel used his professed spirituality and position of trust as a tool to defraud victims at their churches-the very places they felt the most safe,” Assistant U.S. Attorney David Bragdon said in a statement. “From day one, Kimmel told lies to maximize his commissions. He used trust and faith to defraud hundreds of victims, many of whom invested their life’s savings.”

Earlier this year, James Willis Kirk and Carol April Graff of Washington N. Carolina and Glen Smith, Jr. of Lake Worth, FL, pleaded guilty to selling unregistered securities and other counts in connection with the scheme.

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

VSR Financial Pays $3.74 Million To Settle Investor Claim

VSR Financial Services and their co-defendants settled a case involving high risk, illiquid alternative investments for $3.74 million. The case, Gordon B. McLendon, Jr. and Tri-State Theaters vs. Chapman Hext & Co. , et al, Cause No. 12-01326 was prosecuted in Dallas County district court.

The plaintiffs alleged that from 2006-2008 VSR Financial Services broker, Charles E. Chapman recommended they purchase about $7 million worth of the following illiquid investments:

  • Icon Leasing Fund Eleven
  • NetREIT 2006 Program
  • Passco Real Estate Enterprises
  • Waveland Drilling Partners 2007
  • ATEL Growth Capital Fund III
  • Bradford Drilling Associates XXIII
  • Cypress Equipment Fund 13
  • LEAF Equipment Leasing Income Fund III
  • Mewbourne EnergyPartners 07-A
  • Cypress Income Fund VI
  • CNL Income Properties
  • Bradford XXV
  • NetREIT 2008
  • DBSI 2006 Notes

FINRA records indicate that Chapman is not currently registered with FINRA. His recent registration history is listed as:

  • Berthel Fisher & Co.                6/2009-20/2013
  • VSR Financial Services           8/1999-6/2009

FINRA fined VSR Financial $550,000 in 2013 for failing to establish and enforce a reasonable supervisory system regarding the sale of this type of investments, known as alternative or non-conventional investments.

If you suffered damages as a result of the recommendation of your broker that you purchase high risk alternative investments, contact us to learn more about your options.

We currently have a number of cases pending against VSR Financial Services that involve alternative investments. See this for more information. 

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 

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SEC Files Injunction vs. Positron Corporation, Patrick Rooney, John Rooney

The SEC filed a civil injunction action charging Positron Corporation of Westmont, Illinois, Patrick G. Rooney of Oak Brook , Illinois and John R. Rooney of Jupiter, Florida, for orchestrating a market manipulation scheme involving the stock of Positron.  The case was filed in the US District Court for the Southern District of Florida.

The SEC complaint alleges that Positron, Patrick Rooney and John Rooney, engaged in market manipulation fraud by making a payment to a stock promoter who purchased shares of Positron in the open market ahead of planned press releases to help them manipulate the price of the stock, an activity designed to generate the appearance of legitimate market activity in an attempt to artificially increase the trading and price and volume.

The U.S. Attorney’s Office announced criminal charges against Patrick and John Rooney as well.

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

Massachusetts Securities Regulators Bring Charges vs. Cabot Investment Properties (CIP) and Promoters Over TIC Investments

In June 2014, the Massachusetts Securities Division filed an Administrative Complaint against Cabot Investment Properties, LLC, Carlton Penavera Cabot and Timothy John  Kroll charging them with fraud in the offer and sale of securities to Massachusetts residents from August 2003 to the present.

According to the complaint, Cabot and Kroll owned Cabot Investment Properties (CIP) and offered income producing securities known as tenants-in-common (TIC) investments.  The regulators charge Cabot, Cabot and Kroll with fraud involving mostly elderly and retired individuals in connection with the marketing and sale of the TIC investments.

The proceedings suggest that Cabot, et al were able to accomplish their scheme in part by fabricating an air of prominence by associating themselves with the established names of the New England Cabot family as well as the bona fide real estate firm known as Cabot Properties, giving the pretense of prestige, fortune and professionalism.

The complaint lists the following Cabot TIC investment sold to at least one Massachusetts investor:

  • Trafalgar-Avion
  • Addison Corporate Center
  • Oak Grove Plaza
  • Turfway Ridge
  • East Town Center
  • Creekside Mall
  • Ashtabula Mall
  • Northpark/Southland

The Massachusetts Securities Division seeks a cease and desist , a permanent bar from conducting securities business in Massachusetts and rescission offers to Massachusetts residents as well as a fine.

If you do not reside in Massachusetts adn purchased any of the Cabot TIC investments, contact us to find out how you may be able to recover damages for your losses.

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