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Articles Posted in Investment Fraud

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On Friday, February 18, 2022, Silver Law Group and co-counsel filed a class action complaint was filed against GWG Holdings and several of its principals to recover losses suffered by investors who purchased GWG’s “L Bonds”. The Complaint was filed in the United States District Court for the Northern District of Texas and alleges violations of the federal securities laws.  Among other things, the Complaint states that: GWG’s L Bonds were designed to enrich GWG’s principals “accomplished through Defendants’ false and misleading statements and omissions . . .” “The [L Bonds] now lack value on account of GWGH’s inability to service them.” “As a result of Defendants’ wrongful acts and omissions, and the steep decline in the value of the L Bonds, Plaintiffs and other Class members have suffered significant losses and damages, which they now seek to recover through this action.” With The Class Action On File, Silver Law Group Continues Its Investigation Against Financial Advisors Silver Law Group is continuing to investigate GWG’s sales of “L-Bonds” to investors nationwide. Many investors alleged L Bonds were sold as offering investors higher yields than typical publicly traded bonds and as being backed by bundled portfolios of life insurance policies purchased on the secondary market. Unlike publicly traded securities, L Bonds are illiquid, speculative alternative investments that do not have a public market. L Bonds were sold by a network of broker-dealers across the United States. On January 27, 2022, the Wall Street Journal quoted Scott Silver highlighting that “many of our clients are retail investors who bought the bonds after hearing the products were safe and would offer a comfortable income stream for their retirement but that they were shocked to learn that their money was used to pay old investors while the company was under SEC investigation.”On Friday, February 18, 2022, Silver Law Group and co-counsel filed a class action complaint against GWG Holdings and several of its principals to recover losses suffered by investors who purchased GWG’s “L Bonds”. The Complaint was filed in the United States District Court for the Northern District of Texas and alleges violations of the federal securities laws. Among other things, the Complaint states that: Continue reading ›

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If you are among the investors who lost money due to the Northstar Financial Services (Bermuda) Ltd., Omnia Ltd., or the Puerto Rico-based PB Life and Annuity Co. Ltd., you should have experienced securities attorneys presenting you. Silver Law Group is an experienced team of lawyers who represent victims of securities and investment fraud. Silver Law already represents other Northstar claimants in FINRA arbitrations, and the firm’s team continues to investigate their and other claims. Silver Law has a long track record of success in these types of cases: Silver Law is a nationally-recognized securities law firm, and we specialize in helping investors recover losses from unscrupulous brokers. Our clients range the gamut, from individual investors who have lost their retirement savings and investment consortiums to large class actions. And with offices in New York and Florida, we serve clients from around the world—with frequent work in Latin America and the Caribbean. (Para clientes de habla hispana, haga clic aquí para obtener más información.) In the decade since Silver Law first opened its doors, its lawyers have recovered tens of millions of dollars for its clients, in FINRA arbitrations and court proceedings.If you are among the investors who lost money due to the Northstar Financial Services (Bermuda) Ltd., Omnia Ltd., or the Puerto Rico-based PB Life and Annuity Co. Ltd., you should have experienced securities attorneys presenting you. Silver Law Group is an experienced team of lawyers who represent victims of securities and investment fraud. Continue reading ›

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Understandably, investors who have lost money in the bankruptcy of Northstar Financial Services (Bermuda) Ltd. have many questions to ask. Many, of course, are specific to their investment accounts, and to answer those, a phone call or email with counsel may be better. But we can address a few common questions our clients have been asking, to help Northstar investors better understand the issues they’re facing. Can I get my money back? Unfortunately, it’s unlikely that you will receive all of your investment, but you may be able to recover some losses as a creditor. Also, if warranted, you may recover money from your broker-dealer if they are liable for breach of fiduciary duties or other claims arising out of their promotion of Northstar investment products. If I go after my broker, does that mean giving up my Northstar claim? No, these are separate proceedings, and one doesn’t impact the other.Understandably, investors who have lost money in the bankruptcy of Northstar Financial Services (Bermuda) Ltd. have many questions to ask. Many, of course, are specific to their investment accounts, and to answer those, a phone call or email with counsel may be better. But we can address a few common questions our clients have been asking, to help Northstar investors better understand the issues they’re facing. Continue reading ›

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If you are among the investors who lost money due to the Northstar Financial Services (Bermuda) Ltd. bankruptcy, there are ways to recover your investments. You probably will not recoup everything, but some recovery is possible from the liquidation. Silver Law Group already represents many investors in securities arbitration claims against the selling stockbrokers. First, you can fill a creditor claim in Northstar’s bankruptcy proceedings. But there are specified classes of creditors and strict requirements in terms of their eligibility for compensation. Next, you can sue Northstar and its former owner Greg Lindberg. However, your case can’t go forward while Northstar and other Lindberg-owned entities are still in bankruptcy proceedings. By the time a bankruptcy stay is lifted, any money you’d hope to win in a lawsuit may be gone.If you are among the investors who lost money due to the Northstar Financial Services (Bermuda) Ltd. bankruptcy, there are ways to recover your investments. You probably will not recoup everything, but some recovery is possible from the liquidation. Silver Law Group already represents many investors in securities arbitration claims against the selling stockbrokers. Continue reading ›

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With Northstar Financial Services (Bermuda) Ltd. in bankruptcy liquidation, and its former owner Greg Lindberg in prison, everyone with a Northstar investment account must be asking some version of these questions: Who is responsible for this? Is there anyone who can be made to pay back some of my losses? The short answer is: Yes, there is someone who you can probably hold accountable—your broker or investment agent. Of course, Northstar (and Lindberg) has the primary responsibility for your losses, so you can—and should—file a creditor claim with the bankruptcy court. But hundreds, if not thousands, of other creditors are vying for compensation. And the amount Northstar owes everyone vastly outnumbers its assets. (Last year, Northstar owed $260 million but only had $8 million in assets.) Therefore, if you recover anything from the bankruptcy proceeding, you’ll probably be getting just pennies on the dollar.With Northstar Financial Services (Bermuda) Ltd. in bankruptcy liquidation, and its former owner Greg Lindberg in prison, everyone with a Northstar investment account must be asking some version of these questions: Who is responsible for this? Is there anyone who can be made to pay back some of my losses? Continue reading ›

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NorthstarNorthstar Financial Services (Bermuda) Ltd. is one of the dozens of firms in the US and abroad owned by businessman Greg E. Lindberg, now facing bankruptcy and other litigation. And investors are scrambling to recover their lost investments. Current estimates are that 1,773 Northstar account holders have potential claims totaling $426,825,594. Lindberg bought Northstar in 2018. Even then, Northstar, a Bermuda investment firm founded in the 1990s, was said to be on financially shaky ground, offering investment products much less secure than they were marketed to be. But just months after the acquisition, allegations began to surface that Lindberg was using the assets of his companies like Northstar—insurance and investment companies—to keep his other business interests afloat. Lindberg had allegedly taken $2 billion from his U.S. insurance companies to cover investments (and debts) of the other companies—while untold amounts went to his personal gain. Financial Services (Bermuda) Ltd. is one of the dozens of firms in the US and abroad owned by businessman Greg E. Lindberg, now facing bankruptcy and other litigation. And investors are scrambling to recover their lost investments. Current estimates are that 1,773 Northstar account holders have potential claims totaling $426,825,594. Continue reading ›

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NBC 6 in Miami recently published an article about the alleged MJ Capital Funding Ponzi scheme and how to spot Ponzi schemes and other investment fraud. Silver Law Group represents victims of MJ Capital through a class action lawsuit, and routinely represents victims of Ponzi schemes and investment fraud. The article details the experience of Gilmer Bautista, who was looking for a way to earn extra money when someone on social media told him about MJ Capital Funding, which operated out of a Pompano Beach, FL tax office. Batista was told he could earn incredible monthly returns on his principal by investing in MJ’s merchant cash advance business. He eventually handed over $45,000. He hasn’t gotten his money back and now the SEC accuses MJ Capital of operating a Ponzi scheme. In August, 2021 the SEC put out a press release stating that it had filed an “emergency action and obtained a temporary restraining order, an asset freeze, and the appointment of a receiver to stop an alleged Ponzi scheme and misappropriation of investor proceeds perpetrated by Coral Springs, Florida resident Johanna M. Garcia and two entities she controls.”NBC 6 in Miami recently published an article about the alleged MJ Capital Funding Ponzi scheme and how to spot Ponzi schemes and other investment fraud. Silver Law Group represents victims of MJ Capital through a class action lawsuit, and routinely represents victims of Ponzi schemes and investment fraud. Continue reading ›

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Investment fraud schemes vary, each with its own characteristics, except they share a similar red flag: they look too good to be true. Here are the most common. Ponzi Schemes Named after Charles Ponzi, who one hundred years ago touted he could deliver a 50% return within a matter of months for an international investment, the Ponzi scheme entails using funds from new investors to distribute phony returns to earlier investors. Modern-day Ponzi scams entice new investors to invest in opportunities that promise high returns with little or no risk and consistent return distributions that defy the normal fluctuations of the market. Real Estate Investment Schemes Sponsors of real estate investments sometimes offer the promise of easy and fast returns, using testimonials of others who boast prior extraordinary returns. They are often pitched as retirement planning alternatives to traditional mutual funds, bonds, and other securities. They are also characterized by financing outside of common bank borrowing—"hard money"—and property "flipping," where properties are constantly bought and sold for profit in rapid succession.Investment fraud schemes vary, each with its own characteristics, except they share a similar red flag: they look too good to be true. Here are the most common.

Ponzi Schemes

Named after Charles Ponzi, who one hundred years ago touted he could deliver a 50% return within a matter of months for an international investment, the Ponzi scheme entails using funds from new investors to distribute phony returns to earlier investors. Modern-day Ponzi scams entice new investors to invest in opportunities that promise high returns with little or no risk and consistent return distributions that defy the normal fluctuations of the market. Continue reading ›

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Vipshop Holdings, a Chinese e-commerce company has sued Goldman Sachs and Morgan Stanley in New York accusing both companies of utilizing inside information to dump blocks of shares of two companies under Archegos Capital Management earlier this year after the firm defaulted on margin calls in March of 2021. Vipshop accuses both firms of knowing in advance that Archegos’ collapse was imminent, long before the information became public. In order to minimize their losses, the firms sold their shares prior to the news of the Archegos collapse. By doing so, the firms both avoided losses they would have suffered had they waited. Most of the shares sold by the firms were from two companies: Baidu Inc., a large Chinese tech company specializing in artificial intelligence (AI), Farfetch Ltd, an e-commerce company based in London that sells high-end luxury goods from boutiques around the world. Goldman Sachs and Morgan Stanley sold off these stocks between March 22, 2021, and March 29, 2021. Both firms knew that once the news became public that Archegos was unable to meet the margin call, they would be required to sell their stock in both Baidu Inc. and Farfetch Ltd. at a substantial loss. By selling large blocks of the two company’s stocks ahead of time, both firms avoided these losses, at the expense of other investors.

Vipshop Holdings, a Chinese e-commerce company has sued Goldman Sachs and Morgan Stanley in New York accusing both companies of utilizing inside information to dump blocks of shares of two companies under Archegos Capital Management earlier this year after the firm defaulted on margin calls in March of 2021. Continue reading ›

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The Securities and Exchange Commission (SEC) is investigating GWG Holdings $2 billion L Bond, according to GWG’s annual filing in November, 2021 for the previous year. GWG Holdings (GWGH) is a Texas-based financial services firm that offers alternative investments, life insurance, and other services. The company has missed important SEC filing deadlines, and has not yet filed financial statements for the first 3 quarters of 2021, causing Nasdaq to threaten to delist the company. The company had previously declined to comment when asked about an SEC investigation. Now they confirm that the commission is conducting an investigation and has subpoenaed information related to the company’s products, L Bonds, and accounting. GWG stated that it is currently not able to raise money, is losing money, and that the SEC’s investigation is delaying its business plans and could damage its reputation and result in fines and legal costs. A report from an external auditor said that GWG’s internal controls over its financial reporting showed insufficient accounting policies and led to restating financial statements. GWG says it is cooperating with the investigation and that the SEC also asked about their financial reporting consolidation with Beneficient Company Group LP.The Securities and Exchange Commission (SEC) is investigating GWG Holdings $2 billion L Bond, according to GWG’s annual filing in November, 2021 for the previous year.

GWG Holdings (GWGH) is a Texas-based financial services firm that offers alternative investments, life insurance, and other services. Continue reading ›

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