Wall Street Investment Fraud Lawyer Blog

According to the United States Equal Employment Opportunity Commission (EEOC), Sears, Roebuck and Co. (Sears) has agreed to settle a class lawsuit for the sum of $6.2 million and other remedial relief. It was alleged by the EEOC that "Sears maintained an inflexible workers' compensation leave exhaustion policy and terminated employees instead of providing them with reasonable accommodations for their disabilities, in violation of the (Americans with Disabilities Act)."

This lawsuit arose after the EEOC investigated a charge of discrimination filed by a former Sears service technician, John Bava. It is said by the EEOC that after Bava was injured on the job, leaving him with a disability, Sears did not provide Bava with an accommodation to return to work, despite Bava's repeated attempt to return to work. In fact, once Bava's leave expired, it is said that Sears terminated Bava's employment. The EEOC says that Pre-trial discovery concerning Bava's claims uncovered the fact that Sears had terminated hundreds of other employees who had taken workers' compensation leave, failing to consider reasonable accommodations to return these employees to work.

Sears has agreed to an injunction preventing future violations of the ADA and retaliation against employees. Sears has also agreed to "amend its workers' compensation leave policy, provide written reports to the EEOC detailing its workers' compensation practices' compliance with the ADA, train its employees regarding the ADA, and post a notice of the decree at all Sears locations."

The EEOC says that the significant cost of the settlement to Sears was warranted, as they found "well over a hundred former employees who wanted to return to work with an accomodation, but were terminated by Sears." The court has approved the consent settlement decree and is scheduled to hold another hearing to determine the fairness of the distributions that will be made to individuals.

It is unfortunate that often workers injured while working with a company have a hard time returning to work because the company refuses to offer them accommodations. The disabled worker, disabled as a result of their employment, is thereafter considered a burden to the company and often fired as a result. Our law firm has experience representing injured workers in workers' compensation disputes as well as employees who have been discriminated against. If you would like to discuss your legal rights, we welcome your call and will provide a free consultation.

The Securities and Exchange Commission (SEC) has charged Frank Bluestein, of Detroit, Michigan, with fraud, alleging that he scammed many elderly investors into investing into a $250 million ponzi scheme. It is claimed by the SEC that Bluestein focused his efforts on elderly investors, costing many of them their retirement and even their homes.

Bluestein is said to have been the largest salesperson at E-M Management, the ponzi scheme operated by Edward May. The SEC has already filed charges against both Edward May and E-M Management. The SEC alleges that Bluestein would use investment seminars to reach potential investors, often convincing elderly investors to refinance their homes to invest. The SEC says that Bluestein falsely assured investors that these "investments" were safe. Additionally, the SEC claims that Bluestein mislead investors into believing that he conducted a thorough investigation of the investments, when in fact he did little, if anything, to determine the legitimacy of E-M Management's offerings. The SEC also alleges that Bluestein did not disclose the compensation he was receiving from E-M Management for touting their investments. It is said that Bluestein received $1.4 million in compensation from investor funds and $2.4 million in the form of commissions.

The SEC alleges that Bluestein, through his company Maximum Financial's investment seminars, was able to raise approximately $74 million dollars from over 800 investors over the course of five years.

The SEC is seeking a permanent injunction to prevent Bluestein from engaging in future fraudulent conduct, as well as disgorgement of ill-gotten gains and financial penalties.

According to WRAL.com, AARP along with the North Carolina Secretary of State Elaine Marsall and Financial Industrial Regulator Authority Foundation President John Gannon are joining forces in an effort to protect elderly investors from investment fraud. They have begun a statewide campaign to educate investors and assist them in avoiding investment scams.

This type of education is critical and it is hoped that this campaign will provide investors with the tools to determine whether they are being marketed a fraudulent investment. Each day individuals, both young and old, fall victim to investment schemes. No one is safe and all investments should be screened with the same intensity.

If you would like more information on investment fraud, please go to our website at www.dossfirm.com. If you feel as though you may be a victim of an investment scheme, do not hesitate to contact our office to discuss your legal rights. An initial consultation with one of our lawyers is free. Remember time is of the essence when you are considering a legal remedy.

According to the Courthouse News Service, the Securities and Exchange Commission (SEC) has fined Regions Bank $1 million for its role in an investment scam. SEC claims that Regions Bank's participation with an investment scam raised $255 million of funds through "exorbitant, undisclosed commissions and fees" from 14,000 investors. These investors were mostly from Latin America.

Specifically, it is alleged that Regions bank allowed U.S. Pension Trust to use its name in their marketing and sent individuals to Latin America to meet with potential investors. Regions allegedly served as the trustee of the investment plans of U.S. Pension Trust, which the SEC used deceptive sales practices to entice investors. It is said by the SEC that the U.S. Pension Trust "took up to 85 percent of initial contributions for those who paid annually, and as much as 18 percent for single-contribution plans.

The SEC says that Regions allowed the scheme to continue with an "air of legitimacy" and that Regions should have been aware of the deceptive sales practices of U.S. Pension Trust. Unfortunately, the SEC alleges that Regions continued with their participation despite the deceptive sales tactics. Additionally, the SEC adds that Region Bank failed to disclose the fees and commissions to the investors.

The SEC announced that the day the SEC filed suit against the bank the bank agreed to the fine.

According to The Daily Breeze, church members of Hope Chapel Christian Church, which is located in Hermosa Beach, California, are suing a former pastor, alleging that he has scammed them out of thousands of dollars. The church members have also sued the church, alleging that they were discouraged from filing a lawsuit, having been told it is "un-Christian" to sue.

The former pastor is Mike Maffe, who served as an associate pastor of the church for 16 years. Church leaders have stated that after being made aware of the alleged fraud and meeting with the alleged victims, Maffe was fired in January of 2008 from the 2,500 member church. It is alleged by the plaintiffs that Maffe promised high returns on a real estate investment in Texas. Further, it is alleged that Maffe prepared and distributed false documents each quarter showing 7 percent returns on the investment. It is claimed by the plaintiffs that rather than investing the money as promised Maffe used the money to buy risky stocks that ultimately lost all value. The plaintiffs further allege that Maffe did not disclose to them that he had filed for bankruptcy after gambling away his family's money.

Plaintiffs allege that the church has attempted to downplay the situation and sought to convince the plaintiffs not to file suit. Rev. Dale Turner, an associate pastor and administrator, believes that this matter should be resolved among the church members rather than with court intervention. Turner has stated that Maffee has admitted to the wrongdoing and promised to pay the members back. However, the plaintiffs say that that has not happened. The plaintiffs' attorney believes that the church has not acted in the best interest of his clients.

Unfortunately, investment fraud can occur anywhere, even within a church membership. It is important to remember that as a victim of investment fraud you may be able to recover investment losses as a result of the fruad. Please contact our firm to discuss your legal rights. If you would like further information on investment fraud, please visit our website at www.dossfirm.com.

The Securities and Exchange Commission (SEC) has charged a North Carolina couple with an investment scheme that allegedly scammed approximately 500 investors out of $32.5 million dollars. It is alleged that Sidney Hanson and his wife Charlotte Hanson promised extraordinarily high returns to investors that they met at church gatherings and in other face-to-face meetings. These investors were allegedly persuaded to cash out retirement funds and invest in private loan agreements that the Hansons offered through companies that they controlled. These dozen or so companies were collectively referred to as Queen Shoals Entities.

The SEC alleges that the Hansons had a sales force of at least 45 "consultants" that promised yearly returns to investors of between 8 and 30 percent. The consultants allegedly boasted that the investments were safe and were in a diversified portfolio including treasury bills, foreign currency, and precious metals. However, the SEC claims that the investment funds were not invested as promised and that the majority of the funds went into very risky private investments and were also used to pay commissions to the consultants, pay personal expenses, and to other investors in prior failed business ventures operated by the Hansons.

It is also alleged by the SEC that the Hansons, 61 and 62 respectively, used their knowledge and experience to appeal to elderly investors, and caused these investors to "make all the wrong decisions with their retirement savings."

The United State District Judge granted the SEC's request to freeze the assets of the Hansons' and granted the SEC's request for other emergency relief on behalf of the investors on September 3, 2009. The defendants consented to the asset freeze and have agreed to settle the SEC's charges. They have agreed to permanent injunctions and disgorgement of profits. Additionally they have agreed to financial penalties which will be determined at a later date.

The Commodity Futures Trading Commission (CFTC) also filed charged against the defendants. Further, the U.S. Attorney has entered into a plea agreement with Sidney Hanson where he has plead guilty to securities fraud, mail fraud and promotion of money laundering. The agreement requires that Mr. Hanson face a minimum of 12-year prison sentence.

It is unfortunate that there are individuals who will prey on retirees who have saved their whole lives for retirement. These folks often are not employed or are close to retirement and do not have the time or the means to recover their losses. If you feel as though you have been a victim of investment fraud, you may have a legal claim and a potential avenue for recovery. If you would like to discuss your legal rights, please do not hesitate to contact our firm. Furthermore, if you would like additional information on investment fraud please visit our Investor Resource Center at www.dossfirm.com.