Securities Arbitration

FINRA Suspends Francisco Faraco For Forging Signatures

November 2, 2018 | Silver Law Group

Francisco Jose Faraco (CRD #5095972) is a former registered broker and investment advisor whose last employer was Morgan Stanley (CRD #149777) of New York, NY. His previous employers include J.P. Morgan Securities LLC (CRD #79), also of New York, NY, Santander Securities (CRD #41791) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) both of Miami, FL. No other employment information is available, and he is not currently registered with any FINRA member firm. He has been in the industry since 2006.

FINRA-Permanently-Bars-Broker-Richard-McGuire-for-Taking-Funds-and-Forging-Signatures-300x200 Faraco is the subject of three disclosures. Two are for one specific incident.

In January of 2016, Faraco allegedly began assisting an institutional customer obtain a $15M loan from Morgan Stanley Private Bank. In the course of applying, he attempted to keep the process moving after two roadblocks—an expired passport for one individual, and forging two signatures on two assurance documents for collateral. Faraco felt the documents were duplicates. Those signatures were representatives of affiliated companies. The bank approved the loan, and the forgeries were discovered only after one of the affiliates complained.

The SEC’s Temporary Suspension Of Marijuana Company, CannaBusiness Group, LLC Trading

November 2, 2018 | Silver Law Group

Marijuana is still an illegal substance in a number of states (and on the federal level.) But with the increased evidence of medical benefits, many states have begun legalization for medical use. Some, like California and Colorado, have also legalized it for recreational use. Companies are now looking for ways to cash in on this new “green” industry, from growing to manufacturing and processing, as well as associated industries like equipment, real estate and legal services.

FINRA-Permanently-Bars-Gary-Eugene-Donovan-for-Stock-Manipulation-300x200 One company that began dealing with acquiring and leasing land for growing marijuana is CannaBusiness Group out of California. CannaBusiness was founded in 1985, and became a publicly traded company (CBGI) in 2005. CannaBusiness is in the business of the marijuana industry support services, not growing, harvesting and processing. However, the company seems to have fallen off the radar.

According to the company’s Facebook page and other pages that discuss it, CannaBusiness is about “real estate acquisition, leasing, and management firm whose primary focus is on zoning issues.” Calling itself “services for the medical marijuana industry,” the description includes that the company has: “also developed an acquisition plan to acquire companies that sell products and services to include security services, e-commerce store fronts for both grow and dispensary operations, technology solutions, software solutions, and miscellaneous solutions. It is actively involved in the capitalization, development and acquisition of marijuana based consumer products as well as the supporting technologies.”

Cannabis/Marijuana Litigation – FusionPharm

November 2, 2018 | Silver Law Group

It seemed like a good investment—a company that repurposes and refits old shipping containers into hydroponic growing “pods” for local Denver agriculture, as well as the state’s burgeoning cannabis industry. These refurbished containers, complete with installed grow lighting, were known as “PharmPods.” They were marketed as portable hydroponic greenhouses that would solve the problem of finding viable land for agriculture by creating vertical growing spaces in urban areas.

An affiliated company, Vertifresh, was responsible for selling lettuce to local restaurants that was alleged to be grown in PharmPods.

Unfortunately, while the “pods” were real, the company that sold them wasn’t.

SEC Charges Texas-Based Greenview In Cannabis Stock Fraud

November 2, 2018 | Silver Law Group

In the rush to get into the newest investment markets ahead of the curve, some companies will say anything, even if it’s wrong. Our law firm is actively involved in several Cannabis investment lawsuits.

The SEC Has Proposed New Regulations for Fiduciaries on silverlaw.com This week, the SEC filed charges against the Dallas, Texas based Greenview Investment Partners L.P. and its founder Michael E. Cone. The complaint alleges that Cone and his company defrauded investors out of more than $3.3 million with the idea that they would loan money to marijuana-related businesses. The company closed after an FBI probe earlier this year.

“Greenview allegedly exploited investor interest in the marijuana industry and lied about high returns and the backgrounds of its key executives,” said Shamoil T. Shipchandler, Director of the SEC’s Fort Worth Regional Office.

SEC’s Temporary Suspension of GrowLife (PHOT) Stocks

November 2, 2018 | Silver Law Group

Home growers of medical marijuana will find no shortage of gardening supplies available made just for their crops. Our marijuana litigators are seeing many bogus suppliers.

One company that supplies equipment and supplies for the home grower is GrowLife, (PHOT) headquartered in Kirkland, Washington. With stores in Encino, CA, Portland, ME and Calgary, Alberta in Canada, GrowLife offers hydroponic equipment, nutrients, soils, lighting, indoor cultivation equipment and plant growing systems.

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On September 19, 2018, the company issued a press release announcing a rights offering, allowing company shareholders to acquire additional shares of GrowLife common stock. Calling it The Offering, the company gives shareholders the opportunity to invest in the company to help it raise additional funding and continue to expand. This stock currently trades at around $0.0122, and is considered a “penny stock” or “microcap stock.” However, because these stocks are smaller, they don’t meet the minimum for trading on a national exchange like the New York Stock Exchange or the NASDAQ. Information may be more difficult to find.

SEC Suspends Pot Stock Advanced Cannabis Solutions/General Cannabis

November 2, 2018 | Silver Law Group

General Cannabis, formerly known as Advanced Cannabis Solutions, is a service provider based in Denver, CO, that provides consulting and assistance to cannabis-related companies for production, cultivation and retail operations. (The company does not actually grow crops.)

Like any company offering securities for sale, Advanced Cannabis was required to supply certain types of company information. It was listed on both the OTC Bulletin Board and OTC Link, “alternative stock exchanges” to the NYSE and NASDAQ.

Any company that trades securities on these platforms have to meet strict requirements and qualifications, and are required to answer to a regulating agency such as the SEC or the FDIC. Securities are traded directly by dealers. Penny stocks, shell companies, or in bankruptcy are not traded here.

Lawyers Identify Red Flags of Securities Fraud

October 30, 2018 | Silver Law Group

Frequently, investment and securities fraud cases are only limited by Wall Street’s ability to find new and creative ways to abuse investors.

This type of fraud arises out of allegations that losses are due to misconduct or causes unrelated to market forces and is governed by the Securities Exchange Commission, also known as the SEC.

Attorney Scott Silver, of the Silver Law Group says:

Best Attorneys for Ponzi Scheme Victims

October 30, 2018 | Silver Law Group

There are many different types of investment and securities fraud scams designed to bilk investors out of millions of dollars. Sometimes even billions.

As was the case of one of the world’s most famous Ponzi schemers, Bernie Madoff, who is spending the rest of his life in prison.

Attorney Scott Silver, of the Silver Law Group says:

Centaurus Financial Customer Disputes

October 30, 2018 | Silver Law Group

The SEC has strict rules about how a broker-dealer operates, runs their business and keeps records. Any variation from these rules can trigger a sanction or other regulatory process. Centaurus Financial has been the subject of multiple sanctions for various infractions and disputes filed by customers. For these regulatory sanctions, the company has paid over half a million dollars in penalties, fines and fees over the years. In some cases, there were no financial products involved or sold, only regulatory violations.

Centaurus has paid out over three million dollars in securities arbitration awards and judgments.

Attorney Scott Silver, of the Silver Law Group says:

Scott Silver Teaches Securities Arbitration at University of Miami Law School

October 29, 2018 | Silver Law Group

On October 9, 2018, Scott Silver lectured at the University of Miami School of Law Securities Arbitration Clinic. The clinic was initially funded by FINRA and serves an important public service helping many small investors pursue their claims while teaching the next generation of lawyers.

Scott Silver has been actively representing investors in claims for over twenty years and is a graduate of Miami Law School, Class of ’96. Scott spoke about the FINRA discovery process, the importance of pre-filing discovery and shared stories of previous experiences including a recent case for a woman named Flossie whose financial advisor tried to make himself a beneficiary of her estate. Scott highlighted how many cases revolve around issues of elder financial fraud or abuse.

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Scott also enjoyed some time on campus and meeting 80’s movie star, Christian Slater, who was helping register students to vote.