UDF IV Defaults On $35M Loan
United Development Funding IV (UDF IV), a Texas Real Estate Investment Trust (REIT), has defaulted on a $35 million term loan and has suspended its distributions to shareholders. The trust has been surrounded by trouble since December, when an anonymous post on an investor website claimed that UDF IV was operating as a Ponzi scheme. […]
Native American Tribal Bond Scheme Revealed
In a recent SEC press release, Jason Galanis, his father John Galanis, and five others were charged with stealing millions of dollars from investors. The Securities and Exchange Commission press release stated Jason and John Galanis, as well as Devon Archer, Bevan Cooney, Hugh Dunkerley, Gary Hirst and Michelle Norton, were charged “with defrauding investors […]
PA Financial Advisor Defrauds Pro Athletes
Louis Martin Blazer, III, a financial advisor from the Pittsburgh, Pennsylvania area took cash from numerous professional athletes to invest in movie projects in which he had an interest, according to the SEC. Blazer used roughly $2.35 million from five clients without their authorization to help finance two motion pictures: “Mafia the Movie” and “Sibling.” […]
Broker Accused Of Pump-And-Dump Scheme
Guy Gentile of Putnam Valley, New York allegedly ran a $17 million pump-and-dump stock scheme. Gentile faces federal counts of securities fraud and conspiracy to commit securities fraud. He was indicted late last month, according to U.S. Attorney Paul J. Fishman. The SEC filed a civil suit against Gentile late last month, as well. [su_spacer size=”10″]Gentile’s […]
Advisor Accused Of Operating $53M Ponzi Scheme
John Bivona, an unregistered advisor from New Jersey, has been accused of operating a massive Ponzi scheme by the SEC. Bivona allegedly raised over $53 million from investors, whom he told he would put the money in pre-IPO technology companies. Rather, he used the funds to pay his nephew’s credit card bills, income taxes, a […]
Wedbush Fined For Trading Blunders
A number of trading and clearing blunders by Wedbush Securities Inc. pertaining to a customer’s redemption activity and trading of leveraged ETFs has led FINRA and the NASDAQ Stock Market to fine the firm $675,000. [su_spacer size=”10″]Wedbush acted as the clearing firm for its broker-dealer customer, Scout Trading, and as an authorized participant of varying […]
NJ Financial Advisor Pleads Guilty To Fraud
An ex-JPMorgan Chase financial advisor from Livingston, New Jersey pleaded guilty to embezzlement and securities fraud in connection to a $22 million investment fraud that lasted seven years. Prosecutors have called the scheme an elaborate “game of hide and seek.” [su_spacer size=”10″]Michael Oppenheim confessed that he lied to his customers by telling them he would […]
Former Oxford City Football Club Director Pleads Guilty To Fraud
Thomas A. Guerriero of Hillsboro Beach, Florida pleaded guilty to running a $6.6 million telemarketing and investment fraud conspiracy. Guerriero was formerly the director of the Oxford City Football Club, a minor league soccer team based in the university town northwest of London, England. He resigned just before he was indicted on federal charges in December. […]
Most Common Investment Adviser Violations
Six investment adviser violations make up roughly 60% of all deficiencies the SEC’s staff find when they investigate adviser offices, according to Renee Esfandiary, assistant director of the SEC’s Office of Compliance, Inspections and Examinations. The investment adviser violations include: Compliance Rule Violations include not have written policies and procedures to ensure firm operations adhere to […]
Texas REIT Subpoenaed Following FBI Raid
Management of real estate investment trust United Development Funding IV, a hedge fund accused of operating as a Ponzi scheme, has been subpoenaed to turn over company documents to a grand jury. Last week, the FBI raided the REIT’s offices outside of Dallas. While performing their search, “law enforcement officers served executive officers of the trust […]