Frankowski Firm

A Ponzi scheme is a kind of investment fraud in which earlier investors get returns using money obtained from later ones. In a typical Ponzi scheme, the fraudster promises investors a high rate of return with no risk. Ponzi schemes inevitably fail when the influx of new investors ceases and there is insufficient money to go around. Property Can Act as a 'Hook' Naturally, Ponzi scheme operators want a 'hook' in order to attract investors. Investors are enticed by what seems to be a 'genuine' investment opportunity. The fraudsters then provide exaggerated estimates, make plain misleading statements, and make promises of above-market returns in order to inflate the value of their investment. Numerous Ponzi schemes use real estate as a bait. Real estate seems to be a great investment. However, like with everything else, a real estate investment opportunity may just be a fraud in the wrong hands. If you feel you have been a victim of a Ponzi scam, [...]

Alabama Securities Commissioner Joseph Borg has brought a lawsuit against Financial Industry Regulatory Authority (“FINRA”) arbitrator Harvey Linder, alleging that Mr. Linder engaged in “fraud, corruption, and undue means” in expunging (i.e., wiping clean) five customer complaints brought against financial advisor Kent Kirby, formerly of Merrill Lynch. Harvey Linder Accused of Fraud According to the allegations, Harvey Linder also engaged in misconduct by failing to permit one of the customers from presenting documents or testimony to rebut false testimony by Mr. Kirby, essentially kicking the customer out of the hearing. The case dovetails with a decision from the Fulton County Georgia Superior Court earlier this year, in which the judge overturned an arbitration award based on the court’s finding that Wells Fargo and its counsel had manipulated the FINRA arbitrator selection process. Harvey Linder is one of the most frequently selected arbitrators in the country. FINRA’s rules and arbitrator training include a presumption against expungement – describing expungement as an [...]