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Fraud

Claus Foerster Indicted on Fraud Charges after an Alleged Ponzi Scheme

By Tom Costello of Costello Law Group Claus Foerster, a financial advisor from South Carolina, has been indicted on fraud charges. Mr. Foerster was barred by FINRA from the securities industry in 2014 after allegations that he was running a Ponzi scheme. Foerster allegedly ran the Ponzi scheme for 14 years and was […]

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Ex Advisor Admits to Defrauding Clients

By Tom Costello of Costello Law Group  The former president of Coastal Investment Advisors Inc., Michael Donnelly, admitted to defrauding his clients. Donnelly swindled almost $2 million from 13 clients, many of whom were over the age of 65. According to the SEC, Donnelly misappropriated money provided to him by his clients for […]

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NHL Player, Former Olympian, and Firefighters are Among those Swindled by Joseph Zada

By Tom Costello of Costello Law Group Joseph Zada, a former financial advisor, was convicted of fifteen counts of fraud after allegedly swindling millions from twenty-eight investors. One of Zada’s most notable clients was former NHL Red Wing player, Sergei Fedorov. Over an 11 year period, Zada allegedly embezzled $43 million from Fedorov. […]

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Penny Stock Fraud Cost Investors $12 Million

By Tom Costello of Costello Law Group  The Securities and Exchange Commission (SEC) filed a complaint against Hans Peter Black. The founder of Interinvest Corporation is accused of defrauding investors and inflicting damages up to $12 million. The SEC believes that Black failed to disclose that he sat on the board of four […]

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Two Fraud Cases Cost One Broker and His Firm $1 million

By Tom Costello of Costello Law Group Two fraud cases have resulted in a $1 million fine and a permanent bar for the principal of Sage Advisory Group, Benjamin Lee Grant. According to the SEC, when Grant first opened Sage Advisory Group he falsely informed clients that utilizing the services of his new […]

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Brookville Capital Partners to Pay $1.5 million

By Tom Costello of Costello Law Group The Financial Industry Regulatory Authority (FINRA) has ordered Brookville Capital Partners to pay a total of $1.5 million and barred its president, Anthony Lodati, as a result of alleged fraudulent conduct. FINRA believes that Brookville, under the supervision of Lodati, deceptively offered and sold 29 clients […]

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John Carris Investments, LLC Expelled from the Securities Industry along with CEO George Carris

By Tom Costello of Costello Law Group A Financial Industry Regulatory Authority (FINRA) panel expelled both John Carris Investments, LLC and its CEO, George Carris, for fraud and suitability violations. The allegations of wrongdoing related to a scam which involved the sale of stock and promissory notes in a JCI subsidiary known as […]

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Spurs All-Star, Tim Duncan, Sues Advisor

By Tom Costello of Costello Law Group  NBA All-Star, Tim Duncan, sued his Atlanta-based financial advisor, Charles Banks, last month after alleging Banks advised him to purchase highly speculative investments which resulted in extreme losses. Banks acted as Duncan’s financial advisor for over fifteen years. Duncan is claiming losses of $7.5 million. Duncan […]

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Paul Greenwood Receives 10 Year Sentence

By Tom Costello of Costello Law Group Paul Greenwood, a former co-owner of the New York Islanders, was sentenced to ten years in prison on fraud charges. From 1996 through the beginning of 2009, Greenwood and his business partner, Stephen Walsh, used the businesses that they operated, Westridge Capital Management Inc. and WG […]

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Former NBA Player Scores Arbitration Award

By Tom Costello of Costello Law Group  Former NBA player, Sam Young, was awarded $2 million after allegedly being defrauded by his broker, Jinesh “Hodge” Brahmbhatt. The fraud began in 2012 when Brahmbhatt advised Young to invest in unregistered promissory notes. The worthless notes were issued by CFP Group Inc. and also Success […]

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