Our Stockbroker Fraud Law Firm Can Help You Explore Your Legal Options
Shepherd Smith Edwards and Kantas (investorlawyers.com) Is investigating PFS Investments and the other brokerage firms that may have unsuitably marketed Next Level Holdings LLC to customers. The company’s founder, Henry Paul Regan, Jr., is now the subject of investigations by both the US Justice Department (DOJ) and the US Securities and Exchange Commission (SEC). They are accusing him of running a more than $60M Ponzi scam that may have defrauded over 300 investors. Also purportedly involved in the alleged scam are Yield Capital Management and Yield Wealth Limited, which are both affiliated with Regan.
Both the SEC’s civil complaint and the federal government’s criminal indictment allege that investors were promised yearly returns of 12-15.3%, falsely assured that their principal and interest were guaranteed, and given forged insurance documents and unregistered securities offerings. The regulator contends that investors were told that their returns would be paid from profits that came from precious metals in Colombia and investments in health insurance policies under the Affordable Care Act. Regan allegedly stated that the latter would render the monthly income guaranteed by the federal government.
Next Level Holdings sold “Next Level Notes” to investors. These were allegedly misrepresented as risk-free investments while guaranteeing high returns. Now, Next Level Holdings is accused of, in a Ponzi-like fashion, using new investor funds to pay earlier investors. Meantime, the brokers who sold them purportedly were paid substantial commissions for marketing the notes to customers.
Henry Paul Regan was charged with wire fraud, securities fraud, and conspiracy after his arrest. Last month, Next Level Holdings stopped paying interest and said it was winding down the business. The news came just two months after Yield Wealth shuttered its doors.
Why Would I Sue My Broker For My Next Level Holdings Losses?
If you made your investment in Next Level Holdings with the help of your financial advisor, you may be able to hold this broker and their broker-dealer liable–especially if they misrepresented the risks, failed to conduct the necessary due diligence to determine they were involving you in a Ponzi scam, or disregarded your best interests when unsuitably recommending this alternative investment to you.
Ponzi scams can lead to serious losses for investors. There is no actual money to be made seeing as the fraudsters are using newer investors’ money to pay earlier investors their “returns.” Ponzi schemes are inevitably destined to fail. While you can go after the fraudsters for your losses, your best chance for financial recovery is to pursue damages from the financial advisor who should have been protecting your money rather than exposing you to a scam.
Fighting For Investors Since 1990
Shepherd Smith Edwards and Kantas represents investors who sustained serious losses because a broker involved them in some type of investment scam, whether intentionally or not. Even if your financial advisor was not aware of the fraud, which they should have been, you may still be able to sue them for damages.
Our trusted Ponzi fraud lawyers have helped thousands of investors over the years to recoup their losses in arbitration, mediation, and litigation. We are a seasoned broker negligence law firm.
Contact Our Ponzi Scam Attorneys Today
Call (800) 259-9010 or fill out this online form to schedule your free no-obligation case consultation.