Investment Fraud – MoneyFiles.org https://moneyfiles.org Investment Fraud News Wed, 10 Jul 2019 20:00:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.2.2 GPB Holdings Capital Share Prices “Drop Like A Rock” – Investment Fraud Attorneys File Claims To Recover Losses https://moneyfiles.org/gpb-holdings-capital-share-prices-drop-like-a-rock-investment-fraud-attorneys-file-claims-to-recover-losses/619/ https://moneyfiles.org/gpb-holdings-capital-share-prices-drop-like-a-rock-investment-fraud-attorneys-file-claims-to-recover-losses/619/#respond Wed, 10 Jul 2019 20:00:08 +0000 https://moneyfiles.org/?p=619 The media outlets on June 21, 2019 reported that GPB Capital declared that the GPB Capital share prices plummeted by 73%. This news is distressing for several GPB Capital investors as it has been reported that 2 of the biggest GPB investment funds suffered a significant loss in their value. In spite of several reports from […]

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The media outlets on June 21, 2019 reported that GPB Capital declared that the GPB Capital share prices plummeted by 73%. This news is distressing for several GPB Capital investors as it has been reported that 2 of the biggest GPB investment funds suffered a significant loss in their value.

In spite of several reports from various sources, the investment agents and brokerage companies who received more than $100 million in form of commissions by promoting GPB Capital continued to tell their clients that the funds are still at their original price value. They are also continued recommending people to ignore the news and continue holding on to their investments.

GPB Capital Holdings

GPB Capital Lawsuits Filed

The lawyers of www.InvestmentFraudLawyers.com (Haselkorn & Thibaut, P.A.) have filed GPB Capital lawsuits on behalf of investors and are investigating into the actions of investment advisors and brokerage companies who kept on suggesting these funds to their customers as well as the issues associated with GPB Capital. There is a limited time for financiers for recovering their money so if they are interested in getting a free consultation for their case then they should call on 1-800-856-3352.

For several months, numerous GPB Capital investors ignored the negative news and continued sitting on the sidelines as they kept on receiving mails regarding their monthly account statements where the funds reflected the original price value of the investment. Nevertheless, veteran investment agents and brokerage companies were well aware that the said values were inaccurate, yet they ignored these facts and left their client to fend for themselves.

With a significant drop in the value of GPB Automotive Portfolio and GPB Holdings II which are the biggest investment funds of GPB, people are now left thinking regarding what they need to do for recovering their damages. There are other investments too that may be affected by this decline in the value and these investments are GPB NYC Development, GPB Automotive, GPB Waste Management Fund,  and GPB Holdings I. many clients might get a shock when they will get their monthly statement next time as it might be indicative of this fall in prices.

It was claimed on June 21, 2019 that the values of 2018 year-end are indicating significant losses for financiers, and remember GPB Capital has not yet exposed the current and true value of its funds for 2019. Bearing in mind the declaration and the continued bad reports in 2018 regarding GPB Capital, it is highly expected that there is no chance of improvement in the present values of the funds.

GPB Capital suspended redemption in 2018 to allegedly concentrate on financial as well as accounting reporting issues. Later, it was revealed that GPB auditors resigned and the explanation given for it was perplexing as it was due to supposed risks. Numerous media outlets also informed that authorities and regulators such as FINRA, SEC and FBI had begun their investigations on GPB Capital and an unexpected raid was conducted in its office in New York to collect evidence. Amongst all these disputes, a rumor became prevalent that claimed GPB Capital to be a Ponzi scheme.

Why and how do so many people own so much GPB Capital Holdings?

The reason behind this is the greed of the investment advisors who promoted GPB investment funds to gullible people for getting 8% commissions from these purchases. It is claimed that the brokerage firms as well as investment agents earned more than $100 million by suggesting and selling these investments to their clients. As a result of their greed, GPB Capital gained approximately $1.8 billion via these private placement investments.

With approximately 60 brokerage companies including popular names like Woodbury Financial, Advisor Group, FSC Securities, Dawson James, and Sagepoint Financial and numerous investment advisors promoting and selling GPB funds over the past several years, the end result could be a huge damage for investors countrywide.

Investors affected by GPB Capital should plan to get a private and free review of their case from experienced lawyers to get an idea of available options for them. In several cases, the brokerage companies received a significant amount of money by suggesting and selling GPB Capital to their clients and neglecting to perform their duty of monitoring the funds for their customers. In a similar manner, investment agents too mode inappropriate suggestions and were not monitored by their companies when they suggested their clients to neglect the negative news and continue holding on to their investments.

Interested in getting a free of cost and classified session with a veteran lawyer? Call today on 1-800-856-3352.

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Vermont Investment Fraud Fund Set Up https://moneyfiles.org/vermont-investment-fraud-fund-set-up/570/ https://moneyfiles.org/vermont-investment-fraud-fund-set-up/570/#respond Thu, 20 Jun 2019 15:49:26 +0000 https://moneyfiles.org/?p=570 Victims in Vermont of investment fraud will be more likely to recover investment losses thanks to a restitution fund the state created this week. The country will supply the finance by siphoning a portion of financial settlements from securities enforcement cases, based on Vermont Commissioner of Financial Regulation Michael Pieciak. He explained that somewhere between […]

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Victims in Vermont of investment fraud will be more likely to recover investment losses thanks to a restitution fund the state created this week.

The country will supply the finance by siphoning a portion of financial settlements from securities enforcement cases, based on Vermont Commissioner of Financial Regulation Michael Pieciak.

He explained that somewhere between 12% and 15 percent of settlements would be diverted Into the restitution fund. This past year, the state assessed roughly $3 million in fines for securities violations.

Under the principles for the fund, victims can get the lesser of $25,000 or 25 percent of restitution awarded within two years of final purchase. Vulnerable persons, such as those age 60 and over, could receive the lower of $50,000 or 50 percent.
Vermont legislature. The target is to provide victims of fiscal rip-offs a means to regain some money when the perpetrators have blown through ill-gotten gains.

“These are people who’d be otherwise uncompensated,” Mr. Pieciak said.

Indian, Montana and Vermont have established restitution funds. Other states may follow.

“These are conversations we must own because these funds provide Real advantages to investors,” explained Mr. Pieciak, president of the North NASAA.

Christine Lazaro, Public Investors Arbitration Bar Association President, stated restitution funds are a fantastic solution.

Ms Lazaro, a law professor praises it as “important step” in helping investors recover losses.”

The Vermont fraud fund arrives while the Financial Industry Regulatory Authority Inc. grapples with the problem of unpaid arbitration awards.

“We want to see Finra utilize its fine money to help supply Restitution to investors who go through the arbitration process,” Ms. Lazaro stated.

Even though the Vermont fund taps money only from violators, FSI is cautious of the nation’s approach.

“Similar to the mediation fund, We’d be concerned that the Presence of this fund could lead to Vermont bringing added enforcement matters and/or increase enforcement fines to finance the pool,” Robin Traxler, FSI senior vice president of .

A current Finra rule suggestion Would need rogue brokerages to change funds to an account controlled an independment authority that could be used in part to finance outstanding arbitration awards.

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Woodbridge Group of Companies Directors Charged In Ponzi Scheme https://moneyfiles.org/woodbridge-group-of-companies-directors-charged-with-ponzi-scheme/553/ https://moneyfiles.org/woodbridge-group-of-companies-directors-charged-with-ponzi-scheme/553/#respond Tue, 11 Jun 2019 21:27:59 +0000 https://moneyfiles.org/?p=553 The Securities and Exchange Commission this recently charged 2 former directors of investments at Woodbridge Group of Companies LLC because of the roles they played in the massive Ponzi scheme. The California-based defendants, Ivan Acevedo, and Dane R. Roseman were individually apprehended and charged by criminal specialists, alongside with Woodbridge founder Robert H. Shapiro. The […]

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The Securities and Exchange Commission this recently charged 2 former directors of investments at Woodbridge Group of Companies LLC because of the roles they played in the massive Ponzi scheme.

The California-based defendants, Ivan Acevedo, and Dane R. Roseman were individually apprehended and charged by criminal specialists, alongside with Woodbridge founder Robert H. Shapiro.

The SEC earlier charged Woodbridge and Shapiro, and some of Woodbridge’s top brokers who are not registered. In January, a federal judge in Florida ordered Woodbridge, related companies, as well as Shapiro to pay $1 billion altogether for being involved in this particular Ponzi scheme.

According to the complaint from the SEC, though Roseman and Acevedo are not registered in any crime with the SEC before, they have been responsible for fraudulently raising about $1.2 million from well over 8,400 retail investors, many of them seniors, and together received more than $3 million commissions.

The complaint, which was filed in U.S. District Court for the Southern District of Florida, claims that Acevedo was in charge of Woodbridge’s fundraising for Woodbridge’s securities from 2012 until he left in 2015, and then Roseman succeeded him.

Also according to this specific complaint, the defendants had been in charge of hiring and even training Woodbridge’s sales team, certified fraudulent marketing materials plus sales scripts, and aided in creating a false impression that Woodbridge was a new legitimate organization while in real life it had been a Ponzi scheme that used cash from new investors in order to pay existing investors.

The SEC’s complaint charges Acevedo as well as Roseman with violating securities registration, broker-dealer registration, and anti-fraud provisions regarding the federal securities laws and regulations, and seeks disgorgement regarding allegedly ill-gotten gains, together with interest, and financial fees and penalties.

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SEC Charges Investment Advisor For Over Charging Clients https://moneyfiles.org/sec-charges-investment-advisor-for-over-charging-clients/532/ https://moneyfiles.org/sec-charges-investment-advisor-for-over-charging-clients/532/#respond Sat, 01 Jun 2019 14:36:42 +0000 https://moneyfiles.org/?p=532 Stephen Brandon Anderson, an investment advisor was charged by the Securities Exchange Commission (SEC) for swindling his clients by overcharging counseling fees of $367,000 or more. As per the SEC’s report, Anderson operated and owned River Source Wealth Management, an LLC that has now become a non-functioning certified investment consultant located in North Carolina. The […]

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Stephen Brandon Anderson, an investment advisor was charged by the Securities Exchange Commission (SEC) for swindling his clients by overcharging counseling fees of $367,000 or more. As per the SEC’s report, Anderson operated and owned River Source Wealth Management, an LLC that has now become a non-functioning certified investment consultant located in North Carolina. The main source of income for River Source was clientele advisory fee. This fee was dependent on every clientele’s assets under management according to the customer agreements. However, it was found that Anderson cheated most of his customers in 2015 and 2016 by overcharging them.

The overcharges differed for every client but approximately more than 40% amount was overcharged than the approved fees. Anderson also misinformed his customers regarding the reason behind transferring their assets from River Source’s long-time asset custodian, wrongly saying that he had taken the decision to separate and it was an “amicable” action.

In fact, the truth is, the asset custodian terminated the alliance with River Source once it detected some shady billing practices and did not get enough supporting evidence from him. What’s more, the SEC order found that Anderson fabricated the reports submitted to the Commission by overstating his company’s assets under management by $34 million (18%) in 2015 and $61 million (35%) in 2016, also failed to apply compulsory compliance rules and regulations.

Now, the order forbids Anderson from performing in a compliance or supervisory capability or from demanding consulting amount without supervision for at least 3 years, and obliges him to give notice of the SEC order to prospective clientele.

The Associate Director of SEC Enforcement Division, Carolyn M. Welshhans said that when advisers violate their duty to customers by misguiding and swindling them, they must expect SEC to create a package of solutions that will reimburse affected individuals, provide additional safety measures for prospective clients, and discourage similar behavior.

The SEC’s order discovered that Anderson breached two Sections of the Investment Advisers Act i.e. 206(2) and 207, and helped and instigated River Source’s breach of the books and documents and compliance services of the Advisers Act.  Apart from the restrictions and pledging mentioned above, Anderson consented to a cease-and-desist order and assented to pay $100,000 as penalty and $405,381 as disgorgement and prejudgment interest. The harmed investors will get this amount via a Fair Fund. Anderson agreed without confessing or refuting the findings.

Daniel A. Weinstein and Brian Vann did the SEC’s investigation with the help of Jonathan Swankie, Samara Ross and James Smith and Ms. Welshhans and Brian O. Quinn oversaw the case.

 

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GPB Capital Lawsuit Investigation https://moneyfiles.org/gpb-capital-lawsuit-investigation-5-16-2019/503/ https://moneyfiles.org/gpb-capital-lawsuit-investigation-5-16-2019/503/#respond Thu, 16 May 2019 19:19:58 +0000 https://moneyfiles.org/?p=503 Many GPB Capital Holdings LLC shareholders were alerted after receiving the current April 2019 letters. Those investors are now weighing their options in light of GPB’s yearlong refusal to pay investors any distributions. A promising conclusion to a terrible situation does not seem probable, and GPB investors fear they may be left “holding the bag.”  […]

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Many GPB Capital Holdings LLC shareholders were alerted after receiving the current April 2019 letters. Those investors are now weighing their options in light of GPB’s yearlong refusal to pay investors any distributions. A promising conclusion to a terrible situation does not seem probable, and GPB investors fear they may be left “holding the bag.”  Retail investors were tempted by opportunistic brokers offering attractive investment returns, while the brokers that sold them were attracted by massive commissions.

Time is running out for investors to file a GPB Capital lawsuit.  Haselkorn& Thibaut, P.A., InvestmentFraudLawyers.com, have filed multiple claims against various brokerage companies between GPB Capital and continue to explore others. Investors can have free and confidential consultation by calling (888) 628–5590.

GPB investors are more than likely aware of the various regulatory investigations involving GPB (i.e., State of Massachusetts, Securities and Exchange Commission, and FBI), but they are also trying to make sense of GPB’s recent correspondence issued in April 2019: worried investors may know:

    • April 4, 2019: GPB Capital issued a letter to “Valued Partners,” (investors), in which, among other things, GPB anticipated quarterly (not monthly) distribution payments could be announced at the end of April 2019 and compensated on May 15, 2019; and GPB issued another letter to “Valued Partners” confirming that 1st quarter 2019 supply obligations won’t be made, promising to keep investors updated with new advancements.
    • GPB’s April 2019 correspondence should no doubt trigger concern. Investors hope the GPB situation is not the next story on American Greed and are wondering what to do now. Investors continue to monitor the problem and want to have their queries answered.

GPB Capital Holdings Fraud Lawsuits

GPB Capital Lawsuit

Sagepoint Woodbury Financial Services Inc., Hightower Securities, Ladenburg Thalmann and Newbridge Securities are among the approximate 70 broker-dealer companies that sold GPB capital to retail investor clients. The GPB funds cannot always be apt for retail investors as they are insecure and complex. Most investors are not willing to sue but their losses can only be recovered by a GPB Capital lawsuit.

Individual Brokers accredited with the Financial Industry Regulatory Authority, popularly known as FINRA, need to stick to numerous laws, rules and policies when suggesting the acquisition or sale of safety. It is necessary for brokers employing firms to supervise the brokers’ activities. However, some brokers are tempted by high-commissions private funds such as the GPB funds, and choose to ignore the rules and regulations set as industry standards. They, together with their investment companies, may be responsible to you for your losses in GPB funds as they fail to represent the investments correctly.

If you are an investor that has some questions associated with the management of your investments in the GPB funds or some other private placement, please call on (888) 628–5590 and get in touch with the investment fraud lawyers at Haselkorn & Thibaut, P.A. for a free portfolio review and consultation.

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Norman Strell Castleberry Financial: FBI Claims Investment Fraud https://moneyfiles.org/norman-strell-castleberry-financial-fbi-claims-investment-fraud/461/ https://moneyfiles.org/norman-strell-castleberry-financial-fbi-claims-investment-fraud/461/#respond Fri, 26 Apr 2019 18:12:52 +0000 http://moneyfiles.org/?p=461 After a Georgia couple wired $170,000 from their sprinkler company with Norman Strell Castleberry Financial Services, a Wellington investment firm, they were promised they would get a good return on their investment and that their money would be protected. Instead, the couple’s $170,000 was used to help purchase a lavish $1.5 million home off Paddock […]

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After a Georgia couple wired $170,000 from their sprinkler company with Norman Strell Castleberry Financial Services, a Wellington investment firm, they were promised they would get a good return on their investment and that their money would be protected. Instead, the couple’s $170,000 was used to help purchase a lavish $1.5 million home off Paddock Drive at which the head of the currently shuttered real estate investment company live.

In court documents unsealed Thursday, an FBI representative stated the Georgia couple, who were identified only by their initials, were one of 12 investors who were bilked out of $2.8 million by Castleberry Financial Services Group.

History of Investment Fraud

The Securities and Exchange Commission said the losses are more. When cabinet supervisors in March persuaded a federal magistrate to shut Castleberry to avoid further fraud, they estimated it had swindled more than 3.6 million from 15 financiers all over the country. The claims business representatives made to shareholders were as fake as the certificates hung by Jonathan Turner, the firm president in his workplace as claimed by the FBI agent.

Turner claimed to have a law degree from William Howard Taft University and a master’s degree in business administration from Emory University. In reality, he had never gone to school and had changed his name from Jon Barri Brothers to Jonathan Turner, FBI spy Jason Darling noted. Instead, Turner is a convicted felon who was released from prison in 2016 following serving a seven-year stint about 25 fraud-related fees he racked up in Miami.

Turner, 52, appeared in U.S. District Court on Thursday to Face a charge of wire fraud concerning Castleberry’s operations. He is to be arraigned on May 10 about the fee that is punishable with a maximum 30-year prison term.

Norman Strell Castleberry Financial Services

In its petition for a controlling Order to close Castleberry, the SEC named 72-year-old Norma Strell Castleberry Financial along with his 44-year-old daughter, Suzanne Strell, as officials of the firm. Suzanne Strell is engaged to be married to Turner. Norman Strell In November was charged with filing a false insurance claim after state insurance researchers claimed he filed a bogus $8,900 bill for damages he blamed Hurricane Irma. In March, he agreed to repay the insurance company as part of a deferred prosecution agreement.

Neither Strell nor his daughter has now been charged in connection with their roles at Castleberry, according to court records. But, in the criminal complaint filed against Turner, the FBI representative refers to “defendants” and mentions both Strell and his daughter a portion of the fruits of Castleberry’s activities.

On its site and in media interviews, Castleberry encouraged itself as a wise investor in real estate and distressed businesses. It touted a five-year history of “deploying nearly $800 million in capital throughout the balance sheets of leading local businesses,” Darling wrote. Yields of roughly 8 percent to 13 percent each year. Additionally, it claimed, top insurers shielded the investors’ money. Neither claim was true,” Darling said.

Likewise, Rather than investing in distressed Businesses and real estate, Turner along with other unnamed “defendants” used investors’ money as their personal piggy bank, Darling said.

For Example, the broker said, at least $427,000 was utilized to purchase and improve the sprawling house overlooking a golf course the three common in Wellington. Still, another $238,000 ended up in a bank account belonging to both Turner and Suzanne Strell. Another $377,000 was funneled into Castleberry All Sports, a business owned by Turner and Norman Strell.

The business operated from April 2016 until February, when federal agents raided it.

SEC Alleges $3.6M Investor Fraud Castleberry Financial Services

The FBI fraud allegations against Norman Strell are just some of the problems for Castleberry Financial.  Recently, the US Securities and Exchange Commission (SEC) has filed fraud charges against Castleberry Financial Services, its CEO Norman M. Strell and President T. Jonathon Turner were accused of operating an investment firm that scammed $3.6 million from its financiers and continues to seek new financiers. An order of asset freeze was also declared by the supervisor against the organization’s operators. Castleberry is a limited liability firm based in Florida and is not enlisted in the SEC.

As stated by the Commission’s emergency actions:

  • Castleberry mislead investors as it stated that it had a huge number of investment properties along with hundreds of millions invested in local businesses. The truth is, it never made a noteworthy amount from its investments.
  • Moreover, it reportedly hid the criminal records of its President, Turner, whose original name is John Barri Brothers, had spent 18 years in prison for numerous offenses like theft, forgery, and fraud, and was released in 2016. It also claimed that Turner had JD and MBA degrees as well as extensive experience in the funding industry. In reality, all these claims were wrong and he had never been enlisted in the SEC.
  • Strell, the CEO of Castleberry, was charged last November with forgery and fraudulent and false insurance claims. He is not registered with SEC but had enrolled earlier with quite a few broker-dealers.
  • It was informed to investors that their money would be invested in distressed businesses and property. In reality, Turner and Strell used the money for themselves by investing it in other businesses they operated along with transferring the funds to their relatives.
  • The company endorsed high returns and “principal-protected ‘equity-like’ fixed capital returns.” They notified people that their money will be insured and bonded by CAN Financial Group and Chubb Group, two firms that had nothing to do with Castleberry.

The Investment Loss Recovery Group attorneys are helping investors for recovering the losses that they sustained due to fraud, neglect, and other wrongdoings. Investment Loss Recovery Group would like to give you a complimentary, no obligation instance consultation in order that we will help you decide if you have a proof for a claim by calling 1 (888) 628) 5590.

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Yield Enhancement Strategy Losses | Investment Fraud https://moneyfiles.org/yield-enhancement-strategy-losses-iron-condor-strategy-investment-fraud/450/ https://moneyfiles.org/yield-enhancement-strategy-losses-iron-condor-strategy-investment-fraud/450/#respond Wed, 24 Apr 2019 14:41:33 +0000 http://moneyfiles.org/?p=450 An investment strategy that has been gaining recognition between big investment firms is the UBS YES or Yield Enhancement Strategy. This policy is a type of investment where an adviser sells put or call alternatives for improving returns in relatively flat or stable markets. It is often marketed as a “secure” or “safe” alternative for […]

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An investment strategy that has been gaining recognition between big investment firms is the UBS YES or Yield Enhancement Strategy. This policy is a type of investment where an adviser sells put or call alternatives for improving returns in relatively flat or stable markets. It is often marketed as a “secure” or “safe” alternative for financiers looking for consistent results; the truth is that the investment commodities bought or sold under YES policies are risky and intricate, and the unforeseen market can cause considerable losses. This lack of disclosure could constitute fraud, actionable by an attorney.

UBS Yield Enhancement Strategies

Numerous investment firms have suggested YES to financiers in recent years, and several, if not all, are continuing to recommend you these perilous investments. Currently, we are conscious of these companies providing Yield Enhancement Strategy via structured funds, notes, managed accounts, and other comprehensive investment products and plans:

  • UBS Financial Services
  • Morgan Stanley
  • Merrill Lynch
  • Credit Suisse

Recovery Options for Investors Who Lost Money in a Yield Enhancement Strategy

For financiers who have lost money in YES investments, monetary reimbursement may be available with the help of FINRA arbitration.  To pull through financial losses in FINRA arbitration, individuals need to have the capability to validate, through attorneys that their losses were due to investment con. All investments bear risk, and losing money in YES or other venture does not really mean that the money was lost due to con. However, considering the distinctive risks associated with YES or iron condor policies, we believe that financiers who have lost funds in such investments will be permitted to recuperate their losses in several instances.

If you lost money with the UBS Yield enhancement strategy, call the Investment Fraud Lawyers at 1-888-628-5590 for a free consultation.  They help investors recover funds with a “No Recovery, No Fee.”

Yield Enhancement Strategy

What is Investment Fraud?

The term “investment fraud” is so much more than what many people think it to be. While quite a few of you imagine boiler room frauds as you have seen in many movies too, numerous cases include ways that are much more mundane.

Investment fraud includes a broad collection of unacceptable advisory and broker practices that result in individuals naively making bad investment decisions. While this entails advisers and brokers’ deliberate scheme to earn at financiers’ expense, it also involves situations where financiers are given inappropriate suggestions or are not given enough data they require to have to safeguard themselves. This insufficiency of risk disclosure is regarded as investment fraud and could result in class action lawsuits.

YES or Yield Enhancement Strategy Risks

YES strategy is dicey since it relies on market stability which is nearly non-existent in the long run. The aim of these policies is to generate income when a stock index, usually S&P 500, stays within a particular array that is marked by the “strike prices” of alternatives bought at either end of this array. When the alternatives end without attaining their strike costs (one alternative is bought with a strike price on the peak of the array, and the other is bought with a strike price at the base), then the buyer — hypothetically — earns a lucrative return from the alternative premiums.

Considering the “covered” choice, the financier possesses an offsetting place in the asset underlying the alternative. This is called a “long” position, which helps to offset the dangers of the “short” position. With an “uncovered” choice, the financier does not possess this long place; so, if the cost of the key asset goes down substantially, the “short” or the “uncovered” place is a sheer risk.

With YES, the financier possesses an uncovered short position if the key asset rate falls and an uncovered long position if the key asset rate rises. While the financier can apply one of the alternatives to buy the fundamental stock for value if the strike price is fulfilled, this means buying at a time of instability because of an unforeseen market swing. This is dicey, and it indicates that financiers who are in undesirable places with YES plans have two choices: (i) to allow the alternatives to terminate and accumulate nothing or (ii) to acquire a stock when many people would deem it ill-advised.

Iron Condor

Iron Condor

Many financiers have experienced redundant investment losses connected with an financing plan at UBS (along with its rival companies) known as a “Yield Enhancement Strategy.”

This policy includes an options plan that was promoted as a secure approach to increase the profit (or money flow) from a financing profile. Regrettably, investors are now finding unnecessary and unexpected losses in this so-called secure approach.

UBS Financial Services (along with other competing companies) misguided investors and informed them that a Yield Enhancement Strategy will offer a low-risk method to make more money. However, the investment plan was filled with danger, which, in many cases, eventually resulted in unexpected and unnecessary losses. In case you have encountered investment loss due to this policy, get in touch with our insurance broker negligence law company today.

The Yield Enhancement Strategy involves an intricate “iron condor” kind of alternative investment plan which included purchasing and trading put as well as call alternatives on the S&P 500 index. An iron condor alternatives investment tactic consists in writing a collection of alternative contracts, usually at the same time or around the same period. It involves writing two close money alternatives, which are short and buying two more in-depth out-of-the-money alternative contracts, which are long.

Volatile Markets Produce Extra Risks

YES was promoted in a way indicating that as long as there is any volatility in the market, this strategy could help in generating lots of money. But when the stock market turns out to be more unpredictable, as it did in the last quarter of 2018 (particularly in December 2018) with rapid and substantial changes, this plan could generate considerable unnecessary and unexpected losses for several financiers.

This plan might have been (or might have become) inaptly insecure for some financiers, especially if it was advocated as a conservative or secure money-generating investment plan. It is likely that the investment broker or company that advocated this investment strategy had failed to create sufficient risk revelations to individuals concerning this strategy, or might have been unsuccessful in taking logical steps to avoid unexpected losses with the market becoming highly unstable.

In what seemed to be a low volatility market, reduced rate of interest and investment setting, several brokerage advisors and companies like UBS, Wells Fargo, Morgan Stanley, and Merrill Lynch, have allegedly suggested different alternative investment plans to their clients as apparently proficient and secure investment policies for increasing income via their investment profiles. Nevertheless, when stock markets become unstable, these plans can swiftly turn into sudden investment reductions for the financiers. Instances of an unstable market in the second month and last quarter of 2018 might have ensued in unnecessary and unexpected losses for some people.

Prestigious investment plans, especially those plans including naked alternatives, seem to have been advocated to financiers by well-established investment companies such as UBS, Wells Fargo, Morgan Stanley, and Merrill Lynch. While these alternative investment plans have allegedly given investors a chance to make some extra money by participating in a relatively complex alternatives investment plan, some of these investment plans were often filled with undisclosed or sudden risks. One such alternative plan, promoted in certain cases as YES or Yield Enhancement Strategy, entails writing supposed iron condors via S&P 500 derived alternative contracts. On occasion, investors are maneuvered into these plans searching for the alternative income, without completely learning the policy or receiving a disclosure concerning the risks coupled with such strategies.

The most frequently used financial tool for yield enhancement options strategies is S&P 500 Index (SPX), a stock market index established on the biggest 500 companies with stocks filed for dealing with the NASDAQ or NYSE. The CBOE, also known as Chicago Board Options Exchange is its exclusive provides. CBOE offers a plethora of SPX choices with different settlement dates and ranges, including end-of-month and weekly options. Significantly, as SPX is a speculative index, a financier who gets involved in options dealing via SPX will be getting involved in naked or uncovered, alternative investing.

How Does The UBS “Iron Condors” Program Cause Investment Loss?

The iron condor structure entails writing two short close money alternative bonds along with buying two long and deep out-of-the cash alternative bonds. When applying its initial part, the financier is gambling that amid now and end, SPX’s trading will stay range-bound within both alternative strike costs thus guaranteeing that the uncovered alternative bonds will end worthlessly and the financier will gain from alternative premium earned.

In recognition of the considerable risks coupled with short uncovered alternative bonds, the iron condor policy entails another element for reducing the risks. Notably, the next element of an iron condor plan involves purchasing an extra out-of-the-money put bond, as well as buying an additional out-of-the-money call bond. Thus, in iron condor, the initial two legs include two exceptionally risky short uncovered options and the last two legs want to alleviate that threat with less perilous long SPX alternatives. Together, these legs or alternative trades constitute an iron condor strategy.

Eventually, options tactics such as iron condor lead to bets in support of time decay vs. volatility. On one hand, an individual can have options premium income where the option has a fixed lifetime and finite ending and seen as a crumbling asset goes to zilch and ends worthless. On the other hand, periods of distinct market volatility can rapidly lead to situations where the option premium is overshadowed by losses caused by market volatility.  An unstable change in the stock markets in February 2018 and December 2018 caused considerable losses for a number of investors placed in the supposed “yield enhancement” and alike investment plans conjectured on low market volatility.

Without having received full divulgence from their investment adviser concerning these substantial dangers embedded in options hedging or investing strategies, investors that have endured unnecessary or unexpected due to these or similar alternatives investing could have the ability, through an attorney, to recoup their losses. In some instances, the suggestion by a financial advisor or broker might not have a logical basis in the first place, or if the type of the investment together with its risk factors were not revealed or were otherwise misrepresented.

Are you looking for help to evaluate your losses? Contact the Investment Loss Recovery Group, which is the top-rated investment fraud attorney with extensive experience in tackling complicated alternative trading lawsuits all over the country. If you have lost funds because your advisor or broker advised an alternative trading investment like Yield Enhancement or Iron Condor strategy, at UBS, Wells Fargo, Merrill Lynch, Morgan Stanley regarding some investment strategy that caused you unnecessary or unexpected losses, then get in touch with our attorney by calling them today at 1 (888) 628-5590.

 

Copyright 2019
  • Article by moneyfiles.org

To recover Yield Enhancement Strategy investment losses, contact the Investment Loss Recovery Group at 1 (888) 628-5590.

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Puerto Rico Bonds – Investors Angry at Swap https://moneyfiles.org/puerto-rico-bonds-investors-angry-at-swap/414/ https://moneyfiles.org/puerto-rico-bonds-investors-angry-at-swap/414/#respond Tue, 16 Apr 2019 14:39:57 +0000 http://moneyfiles.org/?p=414 Glenn Ryhanych, a money manager sat at his office in Virginia, waiting to get the last resolution of insolvent Puerto Rico’s virtually two-year tale with its sales-tax-backed contracts of worth $17.6 billion. He got a fright instead. Last week, a UBS broker was sentenced for fraud with Puerto Rico Bonds. On Feb. 12, the island […]

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Glenn Ryhanych, a money manager sat at his office in Virginia, waiting to get the last resolution of insolvent Puerto Rico’s virtually two-year tale with its sales-tax-backed contracts of worth $17.6 billion. He got a fright instead. Last week, a UBS broker was sentenced for fraud with Puerto Rico Bonds.

On Feb. 12, the island traded the older bonds for newer ones of lesser worth, letting it reduce the amount of the debt outstanding by nearly a third. However, the deal brought another surprise to financiers like him because the new bonds were issued in just $1,000 increments — and also any odd lots were piled down — the sum they received was in many instances less than they had been anticipating.

“When we watched everything coming, how it was coming in, And down the rounding, we were like ’oh my God,” Ryhanych, the head of BlueList Partners, stated about seeing the fluctuations in his clients’ accounts following the debt swap.

The owners of this debt knew they would be receiving less than what Puerto Rico guaranteed when it issued its contracts years back along with a majority signed off on the agreement in May 2017 in the government’s insolvency. The deal called for the new debt to be issued at a rate of 93 cents on the dollar to people who owned senior-lien deals, together with holders of securities getting 56 cents. They were not expecting to take extra losses if the bet they had been owed was not evenly divisible by 1,000.

Bondholders may soon receive the rest, according to a court filing, so the stress of the past two weeks might only be a temporary hiccup at a kind of debt restructuring infrequently seen from the municipal-bond market, in which defaults and bankruptcies are incredibly uncommon.

puerto rico bond munis

“I’ve been doing this for 25 years and, at least the Surface, the implementation of this thing with all the individual or retail investor in mind was a complete abomination,” explained Ryhanych that oversaw $11 million of mature sales-tax bonds prior to the debt exchange.

Puerto Bonds Restructuring Goes to Court

A court document Posted Friday about the Municipal Securities Rulemaking Board’s site stated that Depository Trust Co., the depository enterprise issuing the contracts and money to shareholders, is permitted to alter the verge for rounding down. Bondholders may also offer cash to cover amounts under the threshold.

A representative at Bank of America Corp., the director of the restructuring, declined to comment, as did Miller Buckfire, a spokesperson at Stifel Financial Corp. who worked as a financial advisor to a group of senior bondholders. Said that it is conscious that certain bondholders have not yet obtained the correct initial distributions and Depository Trust Co., has resolved the situation through allotment to bondholders, the bureau said in an email Friday.

The executive director for Puerto Rico’s Fiscal Agency and Financial Advisory Authority, Christian Sobrino stated in an email that if the broker-dealers have any queries regarding when bond and money distributions will be reflected in their account, he would suggest them to contact their account managers or agents regarding their situations.

A federal board which manages Puerto Rico finances and its bankruptcy procedure support the efforts of all parties to address promptly any supply issues,” Matthias Rieker, a spokesperson for the board, said in an email Friday.

Before Friday’s statements, some brokerage enterprises had decided to pool together bonds which fall below $1,000, called fractional bonds, and sell them to raise money that they’ll then lead to their customers who are waiting to achieve their entire recovery amounts.

The confusion had Left investors questioning if they will find the money for their fractional Shares, Ryhanych said. Moreover, because the new sales-tax bonds do not yet have a credit rating, he was not sure if pooling the bonds may raise Sufficient money to make up the difference.
(Adds Remark from Puerto Rico agency in the paragraph. A preceding Version of the story was corrected because it said an investor’s Holdings were in billions, not millions.)

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Northstar Healthcare Income REIT Stops Distributions https://moneyfiles.org/northstar-healthcare-income-reit-stops-distributions/408/ https://moneyfiles.org/northstar-healthcare-income-reit-stops-distributions/408/#respond Mon, 15 Apr 2019 19:16:28 +0000 http://moneyfiles.org/?p=408 Northstar Healthcare Income REIT is a state-owned, non-traded property investment trust. It has just suspended its distribution andhas submitted its filings with the SEC, which is an acronym for Securities and Exchange Commission. Its investors are seeing massive loss of their shares in the market. All its investors are free to contact the Investment Loss Recovery Group at […]

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Northstar Healthcare Income REIT is a state-owned, non-traded property investment trust. It has just suspended its distribution andhas submitted its filings with the SEC, which is an acronym for Securities and Exchange Commission. Its investors are seeing massive loss of their shares in the market. All its investors are free to contact the Investment Loss Recovery Group at 1(888) 628-5590 to see if they have been falsely sold Northstar Healthcare Income shares.

As per the company’s website, Northstar Healthcare is a non-traded and public REIT. It is “formed to improve and getting investments in healthcare real estate”. Its main aim is to get investments in the needs-driven senior housing industry, which entails self-reliant living services, sponsored living centers, and expert nursing services. The website defines the needs-driven senior home industry as an attractive asset and says that the REIT is for those individuals who are looking for earnings via cash distributions, who desire the prospect of capital appreciation, decreased instability and are looking for commercial real estate experience in their profiles.

NORTHSTAR HEALTHCARE INCOME SHARE VALUE DROPS

Colony Capital, “a top international property and investment management company” sponsors NorthStar Healthcare income with $43 billion in funds. Northstar Healthcare Income mainly offers its REIT shares at $10/share, with secondary market shares recently listed at $6.70/share. But SEC filings indicate that the company has recently suspended distributions to its shareholders. Its share price has fallen below $7 per share.

Northstar healthcare income

New third-party evaluation firms for 50 properties prepare Northstar Healthcare Income assessment reports. As mentioned last year, NorthStar Healthcare’s previous net asset value of $8.50 per share has been based on 67 healthcare real estate properties, 5 joint venture branches, 1 debt investment and 61 health real estate commitments.

The company gives many reasons that are responsible for the decrease in net asset value, such as occupancy challenges in select markets, increased labor costs, restructuring rentals, replacing occupants, and capital expenditures while making consistent distributions to its shareholders. Chairperson, chief executive officer and president of Northstar Healthcare said, “Although we’re disappointed at the decline in projected per share value, we believe that the just-completed operator changes, funding in our portfolio and extra resources added to the advisor’s asset management team will enhance the performance of our investments.”

A real estate investment trust or REIT is an entity that uses the collective funds of investors to buy real estate property. REITs could be traded either publicly or privately. While they provide new investment opportunities to investors that otherwise could not acquire certain real estate investments, they can also pose risks to short-term investors as well as a few long-term investors. Investment professionals who recommend wrong REITs could face disciplinary actions by SEC or FINRA.

If you lost money because your broker or adviser recommended Northstar Healthcare, non-traded REITs, call Investment Loss Recovery Group today at (888) 628-5590.

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UBS Broker Sentenced in Fraudulent Puerto Rico Bond Sales https://moneyfiles.org/ubs-broker-sentenced-fraudulent-puerto-rico-bond/400/ https://moneyfiles.org/ubs-broker-sentenced-fraudulent-puerto-rico-bond/400/#respond Thu, 11 Apr 2019 18:52:50 +0000 http://moneyfiles.org/?p=400 A former prominent broker in Puerto Rico was jailed for a year and a day, months after he admitted his misdeed of being a part of a Swiss banking giant UBS for about $1 million in form of fees that saw several financiers lose their life savings. Jose Ramirez is the first person to spend […]

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A former prominent broker in Puerto Rico was jailed for a year and a day, months after he admitted his misdeed of being a part of a Swiss banking giant UBS for about $1 million in form of fees that saw several financiers lose their life savings.

Jose Ramirez is the first person to spend time in jail due to sales of UBS proprietary closed-end bond funds. MoneyFiles.org has been investigating many broker fraud cases regarding Puerto Rico Bonds.

In a near-empty DC federal court, Ramirez pleaded Justice Thomas F. Hogan for mercy. He said that he ruined his life and the lives of people who looked to him for help. Judge Hogan ordered 33 months jail, two years of supervised discharge, a fine of $500 and allowed Ramirez’s petition to report to prison voluntarily.

Judge Hogan said that he was confronted with a person who had confessed his offenses and he believed is apologetic for his activities. Ramirez, popularly known as “The Whopper” in Puerto Rico, confessed his crimes in November 2018 for his part in a plan to unfairly acquire and misuse credit lines to buy securities.

As per the authorities, from January 2011 to September 2013, Ramirez suggested his customers to borrow money and put that money into UBS Puerto Rico bonds. The sales produced about $1.2 million for him in the form of his fees.

UBS Puerto Rico did not permit using credit lines to buy securities. But, Ramirez claimed that he was not the only dealer whose customers used the credit lines to buy securities. He said in his conviction memo that UBS was completely aware of the dealings and issued letters to seven brokers for understanding, permitting, or suggesting the plan.

Ramirez was the only broker who was indicted for his participation in the plan so far. The earnings produced commissions when the bank lines were drawn in UBS’s Utah subsidiary and then again when the customers used their capital for investing in the closed-end bonds supervised by Ramirez.

By the end of June 2013, two distinct bonds accounted for more than 90% of all assets in 10 of UBS bonds.

A CNBC assessment In December 2017 discovered that UBS was not honest with its customers and agents about the risks connected with its proprietary bail funds even as the worth of the capital plunged.

From 2012, UBS financiers around the island had roughly invested $10 billion in the funds or about 10% of their island’s GDP.

In 2013, Puerto Rico bond market plunged which caused a sharp drop in the bond funds value. Several clients were forced to sell their funds, as they had no other assets to fulfill account maintenance requirements. That caused major losses.

As per the government, the industry breakdown eventually uncovered Ramirez’s ploy.

UBS BROKER RICO BOND FRAUD SALES

As per the court records, Ramirez did not answer the regulator’s worries as he had raised his Fifth Amendment right under the U.S. Constitution. In addition, he maintained his constitutional right to stay quiet in the legal event for the SEC’s civil case.

Ramirez eventually broke his silence last Saturday when he called out the names of seven brokers whom he alleged either had knowledge of, involved in or had suggested the dealings of the scheme.

In his conviction memo, Ramirez called out four former or current UBS Puerto Rico agents: Luis Sanchez, Leslie Highley, Fernando Castillo and David Lugo along with a UBS executive, Doel Garcia, a UBS Puerto Rico division manager and his former supervisor, Ramiro Colon and Carlos Ubinas who was the president as well as the chairman of UBS Puerto Rico.

In reaction to this, a spokesperson from UBS stated that in its conviction document, the DOJ explained Mr. Ramirez’s crime as brazen, revealed that he evaded UBS controls and discovered that Mr. Ramirez took benefit of all concerned parties. In light of this discovery, Mr. Ramirez’s last efforts of blaming his victims for his crimes were proved futile.

Jacobs told Judge Hogan that UBS has failed in an internal investigation that recognized the Ramirez as the hub of this fraud.

Jacobs told the Justice that Ramirez had cooperated with the authorities during its investigation but the proof and data he gave was not sufficient for the government to prove that other brokers were also involved in the deceptive behavior.

An Attorney for Lugo stated that Mr. Lugo had not participated in the deeds for which Mr. Ramirez was charged, and eventually had to confess his crimes. Mr. Lugo’s employment negotiation against UBS-PR was established to the liking of Mr. Lugo as well as UBS-PR.

UBS has earlier made a settlement with SEC and FINRA for roughly $34 million for fees including the sales procedures of their bonds and incapability of supervising.

UBS has also given approximately $480 million to its customers. Apart from that, the Swiss bank has conducted an investigation regarding the Puerto Rico funding. UBS states that they are fully assisting the authorities.

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