Wall Street Investment Fraud Lawyer Blog

According to the Securities and Exchange Commission (SEC), USA Retirement Management Services (USARMS), managed by Francios E. Durmaz and Robert C. Pribilski, used estate planning seminars to perpetuate a Ponzi scheme. The SEC alleges that Durmaz and Pribilski, through mass mailings, invited retirees to attend estate planning seminars and then conned them into purchasing USARMS promissory notes. It is alleged that these individuals then convinced investors to purchase purported Turkish investments.

In total, it is believed that USARMS raised $20 million dollars from over 120 individual investors. Unfortunately, however, the SEC claims that the money was not invested in the "Turkish Eurobonds," which were touted by Durmaz and Pribilski as safe, guaranteed investments. The SEC alleges that the money was paid to earlier investors as "returns" in a ponzi scheme fashion and misused to finance Durmaz and Pribilski's luxurious lifestyles and other businesses.

The SEC has obtained an emergency court order to shut down this scheme. In the SEC's complaint it is alleged that Durmaz and other USARMS employees would give a basic estate planning seminar and then follow-up with the retirees by letter providing them with the opportunity for a personal meeting to discuss setting up a living trust or will. The SEC says that once the retiree came to their offices, Durmaz would review the individual's personal finances and begin the hard sell of these promissory notes. Durmaz would allegedly falsely boast of holding a Masters in Business Administration (MBA) and that he was a Certified Senior Advisor. This gave investors a sense of security as they believed that they were dealing with an educated individual with expert knowledge in retiree issues.

The assets of the defendants have been frozen by the District Judge for the Central District of California. Further, the defendants are enjoined from future violations of the antifraud provisions.

Unfortunately, investors should always be cautious when attending any type of seminar regarding investments. There are individuals who use these seminars to gain the trust of investors and then take advantage of the trust and perpetrate a fraud. Prior to purchasing any investment, do your homework and make sure you independently verify any promises by the person/company selling the investment.

Do you believe that you have been a victim of an investment scheme? Please contact our firm for a free consultation to discuss your legal rights. For further information about our firm, please visit our website www.dossfirm.com.

The Doss Firm is pleased to announce a favorable decision issued by the Georgia Supreme Court in a pending case against Georgia Natural Gas. Our firm, along with the firm of Strickland Brockington & Lewis, represent Charles Ellison and Susan Bresler who filed a class action lawsuit against Southstar Energy Services, LLC d/b/a Georgia Natural Gas seeking to recover overpayments and other damages arising from their violations of Georgia's Natural Gas Act. In summary, Plaintiffs allege that Georgia Natural Gas has overcharged customers for both natural gas and for customer service charges.

Georgia Natural Gas filed a motion to dismiss with the trial court, arguing that the claims were barred by the voluntary payment doctrine. The voluntary payment doctrine provides that "Payments of claims made through ignorance of the law or where all the facts are known and there is no misplaced confidence and no artifice, deception, or fraudulent practice used by the other party are deemed voluntary and cannot be recovered unless made under an urgent and immediate necessity therefor or to release person or property from detention or to prevent an immediate seizure of person or property." O.C.G.A. 13-1-13. In sum, the voluntary payment doctrine prevents individuals who have made an overpayment from recovering monies overpaid, unless they show an exception as outlined above.

The trial court dismissed the complaint pursuant to the voluntary payment doctrine. However, the Court of Appeals reversed the trial court's ruling. Georgia Natural Gas appealed again arguing that the plaintiffs are precluded from recovery of overcharges, pursuant to the voluntary payment doctrine, as a result of "voluntary" payment of their bills.

The Georgia Supreme Court has affirmed the Court of Appeals decision, concluding that the Georgia Natural Gas Act, which has the clear purpose of protecting natural gas consumers, provides a private right of action for damages, thus removing the voluntary payment doctrine as a defense. Therefore, our clients may proceed with their lawsuit against Georgia Natural Gas for overcharging customers for both natural gas and customer service charges.