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Tagged Posts: fraud’

Securities Fraud Class Action Lawsuit Trends

October 25, 2016

When we write about securities law issues here, we tend to focus on enforcement actions or investor alerts by the Securities and Exchange Commission (SEC).  For instance, in our previous blog series “SEC Issues an Investor Alert on Social Media and Investing,” we discussed the SEC investor alert warning investors about fraudsters who attempt to manipulate share prices through social media.  In another blog post “Crowdfunding Gone Wrong: Some Points of Caution,” we covered the SEC’s emergency action against Ascenergy LLC, a Nevada limited liability company, which allegedly solicited investors on crowdfunding websites with false and misleading statements. … Read the rest

When a Business Partnership Turns Out To Be a Bait-and-Switch (Part II)

September 27, 2016

Soon after Hogan was brought in as a 1/3 owner of Turbine Asset Holdings, LLC (“TAH”), he began assisting TAH with business opportunities using his contacts and expertise.[1]  One such opportunity involved Pratt & Whitney (“Pratt”), which was expected to be a very substantial inventory management opportunity worth at least $80MM of a net profit.  Hogan led the day-to-day discussions and planning with Pratt and kept Glassman informed of the progress, while Glassman started contacting banks to finance the deal. … Read the rest

When a Business Partnership Turns Out To Be a Bait-and-Switch (Part I)

September 15, 2016

Here at The R. Shawn McBride Law Firm, PLLC, we write frequently about partnership, LLC, and multi-owner entities.  In most, if not all, cases or situations we discuss, business partners start out on friendly terms, in a spirit of collaboration and genuine partnership, only to see their relationship deteriorate over time due to disagreements over management, ownership, or other matters.  But what if there is no intent to be business partners in the first place?  AerReach Aero Space Solutions, LLC v.Read the rest

Crowdfunding Gone Wrong: Some Points of Caution SEC Investor Alert: Ascenergy LLC Oil and Gas Crowdfunding Scheme

January 19, 2016

We’ve covered crowdfunding extensively in our previous posts “Crowdfunding: Is It Right for My Business,” “Is It Time To Do Crowdfunding To Raise Money?: SEC Releases Federal Crowdfunding Rules,” and “An Easy Way for Texas Companies To Raise Money? A Discussion of the Texas Crowdfunding Exemption.” As crowdfunding gains popularity, not only has it proved to be a process of trial and error (see, for example, our previous posts “Eureeca: A Cautionary Tale on How Not To Do Crowdfunding” and “Update on Eureeca Capital”), but schemes to defraud unsophisticated investors with the allure of crowdfunding also seem to have been on the rise.… Read the rest

Real Estate Securities Fraud Targeting Immigrant Investors (Part 2)

October 3, 2015

SEC v. Path America, LLC.

In SEC v. Path America, LLC, the SEC alleged that Dargey, the individual defendant, set up a series of entities in Everett, Washington, purportedly to offer limited partnership interests priced at $500,000 each, plus an administrative fee of $45,000 per investor.[1] The SEC says that the private placement memoranda (“PPMs”) for the offerings contained statements that an investment in the project was intended to qualify under the EB-5 program and that the proceeds of the offerings were to be used for the construction of a 40-story tower in Seattle and for a real estate development project in Everett.… Read the rest

Real Estate Securities Fraud Targeting Immigrant Investors (Part 1)

September 29, 2015

If you read our previous blog series on exempt offerings (available here) or attended one of our presentations on raising capital through exempt offerings, you know that the definition of “security” under federal law is extremely broad and includes, among other things, “any note, stock, . . . , certificate of interest or participation in any profit-sharing agreement . . . , or in general, any instrument commonly known as a “security”. . . .”[1]  Interests in certain business entities, such as limited liability companies and limited partnerships, are likely to be securities, so if you have a fractional interest in a piece of real property owned by such entities, for example, chances are that it is a security subject to regulation as security (among other laws).… Read the rest

All postings are intended to be planning tools to familiarize readers with some of the high-level issues discussed therein. No posting is intended to be a comprehensive discussion and additional details should be discussed with your transaction planners including attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity.