Silver Law Group is investigating Burnham Securities, Inc. (CRD# 22549) and related entities for allegations of its role as placement agent for fraudulent tribal bonds.
In May 2016, the Securities and Exchange Commission (“SEC”) filed a complaint against a host of individuals, including notorious securities fraudsters Jason W. Galanis and his father John P. Galanis for defrauding investors in sham Native American tribal bonds.
The Galanises main objective was to steal money for their own extravagant expenses and criminal defense costs.
The SEC complaint alleges that Burnham, through various entities, was the placement agent and facilitated transactions with customers. Some of Burnham’s related entities include its whole owner, Burnham Financial Group; the holding company for the broker-dealer Burnham Securities, BAM Holdings, LLC; and the holding companies for the investment management companies operating under the Burnham moniker, Burnham Asset Management Corporation (CRD# 104960) and Rosemont Seneca Bohai LLC.
While Burnham Securities is no longer licensed by FINRA, Burnham Asset Management Corporation continues to function with Burnham Securities principals at the helm.
The complaint alleges that Galanis and his associates convinced a Native America tribal corporation affiliated with the Wakpamni District of the Oglala Sioux Nation to issue limited recourse bonds that the father-son duo had already structured. Instead of investing the bond proceeds as promised, the complaint alleges, the money wound up in a bank account in Florida belonging to a Galanis and associates’-controlled company.
Galanis, allegedly, used two other individuals, Devan D. Archer and Bevan T. Cooney to gain control over Burnham Securities to effectuate their scheme. Additionally, Galanis sold the sham bonds through Hughes Capital Management, LLC and Atlantic Asset Management LLC, two investment advisory funds Galanis gained control of.
Before a broker-dealer endorses, sells, and/or acts a placement agent for particular offerings, it has a duty to its customers to perform adequate due diligence on the investment. The broker-dealer is required to thoroughly vet the company to ascertain whether or not the investment will be fruitful or not. This includes going through the records, books, and financials to ascertain if the company is legitimate.
If you have purchased these tribal bonds through Burnham Securities, Hughes Capital Management, LLC, or Atlantic Asset Management LLC, you may be eligible to recover some or all of your lost investment.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.