What You Need to Know About Initial Coin Offerings

In certain instances, virtual currency offered in an ICO is considered a security. As such, it is subject to regulation by the SEC. The SEC closely monitors companies and firms engaging in initial coin offerings. If there is suspicion of fraudulent activity, the SEC will actually suspend trading operations to protect investors. If you are offered to invest in an ICO, the best thing you can do is to first check with the SEC on the offering’s regulatory standing. You can also research a company and evaluate the investment risks yourself. When researching a potential ICO investment opportunity, be sure to check:

• To make sure the company’s public records and reports are up-to-date
• Take steps to verify, to the best of your ability, that company information provided is accurate
• Research the company’s recent trading activity, check for suspensions with the SEC

Investor Resources

If you have more questions about investing in initial coin offerings, you can find out more here. The SEC’s EDGAR database provides extensive organizational and financial information for many companies. You can access that database here. If you believe you invested in an ICO under false pretenses or misleading information, call us to find out your investment recovery options.

When you have a stockbroker handle your investments, you expect that this person won’t violate legal and ethical standards. But sadly, this isn’t always the case, and below are several reasons you may need to hire a stock fraud attorney. Misrepresentation or Omissions In order to know when to buy or sell an investment, clients need enough information from their broker in order to make a sound decision. However, some brokers fail to reveal important facts or they make false claims such as “I have an inside tip.” Brokers can potentially be held liable if clients make poor investments based on misrepresentation or omissions. Not Following Instructions Brokers are typically required to follow a client’s instructions when it comes time to buying and selling stock. If a broker fails to do so, this is often grounds for the client to recover losses. Unauthorized Trading This means the broker bought or sold securities without a client’s verbal or written permission. Negligence Brokers are negligent when they fail to act in the same manner that a reasonable and prudent broker would have acted given the same set of circumstances. Concentration A broker should recommend that a client’s account be diversified among several different investments, classes, and industries. A broker who does not properly recommend diversification can find themselves liable for at least some of a client’s losses. Unsuitability This term refers to a broker’s failure to make recommendations based on a client’s needs, objectives, and risk tolerance. Failure to Supervise By law, brokerage firms must supervise and regulate their brokers as well as routinely review their activities. When a broker is found guilty of stockbroker fraud, the firm may also be responsible for the investor’s losses. If you think you have been the victim of stock fraud, please contact us today for a free consultation.

If you’ve been the victim of stock fraud, you will definitely need the services of an experienced stock fraud attorney who will handle your case. But, you may be wondering, what will a stock fraud attorney do for you? In an attempt to make this process go a little bit easier for you — even though, certainly, the process itself is far from easy — here’s a short list of responsibilities that stock fraud attorneys will undertake on your behalf:

• A stock fraud attorney will help you understand the finer points of stock fraud. For example, an experienced attorney in this field will be able to explain to you the various types of investment stock fraud, such as churning (excessive trading in the hopes of obtaining financial gain), fraudulent account documentation, and due diligence failure.
• A stock fraud attorney is not afraid to litigate on your behalf. Even though an attorney will do whatever it takes to prevent your case from going to court — in the hopes of reaching a settlement — s/he will not be afraid to litigate on your behalf when it’s pertinent.
• Finally, but no less importantly, an experienced stock fraud attorney will be well versed in both state and Federal laws that govern stock fraud.

Savage Villoch, PLLC offers experienced and highly qualified legal services to individuals, business owners, stock market investors, stockbrokers, and brokerage firms. Located in Tampa, Florida, we have a regional, national, and global practice with a focus on bankruptcy, business, and securities issues. Contact us today for a free, no obligation consultation about your case.

Florida stock broker fraud attorney

s 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. These “penny stocks” (at its highest, Trinity was worth about $1.95 a share) Stern pitched by employing a telemarketing company to cold call an entire list of “registered stockbrokers.” The telemarketers proclaimed–in Stern’s words–that “TrinityCare would appreciate by $5 or $6 in 6 months to a year,” and that it had gotten financing from the U.S. Department of Housing and Urban Develop to build more senior housing. These, however, were untruths. Telemarketers also asserted, at Stern’s bidding, that Cytta’s sales would reach $500 million by 2014. Hidden was the fact that Cytta had lost $70,000 in 2008. At the same time that Stern was paying others to tout these “penny stocks,” he was selling his shares “for personal gain,” and without telling the stockbrokers who were investing his nearly worthless businesses. This fraudulent practice is called “scalping.” Stern gained about $169,000 in this “stock manipulation” scheme. But, as he “lost control of the process,” TrinityCare and Cytta stock quickly sank in value, and the investors lost everything. If you’ve been swindled in a “penny stock” scam such as this one, please contact us. We Florida stock broker fraud attorneys will work diligently to help you recover your investment losses. Mr. Stern was forced, by the Court, to give up his “ill-gotten gains” to repay those he harmed. And, he was ordered to never sell “penny” securities again. There is justice. We can definitely help!