Articles Tagged with stock broker fraud

svFlorida stock broker fraud attorneys well understand the underpinnings of the 2012 case of the U.S. Securities and Exchange Commission(SEC) versus First Resource Group, LLC, in which company principal David H. Stern was “charged with 3 counts of fraud.”  The crime of fraud, in general, consists of deliberate misrepresentations–or omissions–of facts in order to profit, often at the expense of others.

In this case–Mr. Stern, of Florida, set himself up in 2008 as a stockbroker when, in reality, his company had never been “registered with the SEC.” He sold stocks using “instruments of interstate commerce and the U.S. mail to knowingly and recklessly employ devices, schemes, or artifices to defraud investors.”  David Stern’s “devices and schemes” played out as follows:

Signing a contract with 2 companies to “solicit investors” for their stock, Stern sought to aid TrinityCare Senior Living, Inc., which built and managed senior-care housing and Cytta Corp., which composed medical data software. He was given 150,000 shares of TrinityCare and 200,000 shares of Cytta for his trouble.

Stock broker fraud, also known as investment fraud, occurs when a financial professional or firm offers incomplete, inaccurate or biased information that ends up benefiting the adviser or firm and not the investor. A single individual can commit this type of fraud or it may occur on a corporate level and can run the gamut of investments from penny stocks to multi-million dollar trades.

All investment professionals are legally bound to exercise due care when representing the interests of their investors. When a broker fails to meet financial industry standards of care and harms an investor’s interests, the investor can make a claim against the individual or firm for professional negligence and fraud with the help of a Florida stock broker fraud attorney.

Stock fraud practices can include:

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