Aequitas Commercial Finance documents point toward Ponzi

Aequitas Ponzi- Could it be?

I received a document from a confidential source that was prepared by Aequitas and is quite enlightening.  It is written about the Aequitas Private Notes issued by ACF (Aequitas Commercial Finance), and is dated the third quarter of 2015.

It states “ACF uses proceeds from Private Notes primarily to repay prior investors.”  I interpret that to mean that the company did not have the assets to pay prior investors from its regular course of business.  I define a Ponzi Scheme as an investment scheme that operates by using new investor money to pay prior investors and creating the illusion that distributions are from operations, when they are not.

 It is beginning to sound a lot like Ponzi at Aequitas

Investors in the  ACF Private Notes who were unaware of this fact when  they made their purchases have legitimate reasons to complain, and to file claims against Aequitas principals and the advisors who sold those notes.   The law requires that investors be told all of the material facts if they are solicited to make a purchase.
So far we don’t know whether the other Aequitas programs also used new investor money to pay existing investors, but we will find out.

Samuels Yoelin Kantor securities attorneys Robert Banks and Darlene Pasiczny are heading up the Aequitas investigation. Mr. Banks recently updated concerned investors with information regarding their choices for pursuing recovery. Please contact our office to discuss your situation confidentially. You can call 800-647-8130 or reach us by email atbbanks@samuelslaw.com or info@investordefenders.com

 

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Aequitas Lawsuits – how to choose

If I choose to be in and Aequitas lawsuit, which one should I choose?

The good news is that all of the lawyers and law firms who have been reported by the press as representing Aequitas investors are excellent law firms. Based on what we have heard, there are two basic approaches that law firms are taking.

1.  Some investors were referred to their lawyers by the same investment advisors that sold them their Aequitas investments.Those law firms will probably not be able to bring claims against the investment advisors who referred the clients to them. They may have some advantage in that they will be representing large numbers of investors in claims against Aequitas officers and directors, accountants and lawyers that may have participated in the sale of the Aequitas investments. The disadvantage to being part of these cases is that investors who sign up with these law firms will likely be prevented from bringing claims against financial advisors who may have sold the Aequitas notes by misrepresenting the risks and characteristics of the notes that they sold.

2. Our firm has taken a different approach. 

We are evaluating two avenues of recovery for our clients. FIRST, we will be filing claims against the investment advisors that sold Aequitas products to our clients. We will not make any agreements with any investment advisors who sold Aequitas, because we intend to bring claims against investment advisors who breached their fiduciary duties to their clients in selling Aequitas. Not every investor has such a claim. But, investors who were told by their investment advisors that these were safe investments, those who were solicited to make their purchases recently, and those who invested an unsuitable percentage of their retirement money in Aequitas and other “alternative investments” have strong claims against their advisors that ought to be evaluated. Many of those claims will be prosecuted in arbitration (instead of court) because of a provision in the investment advisory agreements. Our firm is limiting the number of clients we can accept against any one investment advisory firm, but we are reviewing claims against several different advisors in a number of states. SECOND, we also intend to pursue additional claims in court for our clients in court against other defendants who participated, aided and controlled the persons who sold the Aequitas investments. This may include officers and directors of Aequitas, its accountants, lawyers, and companies that were involved in the management of client funds held at investment advisory firms that had a connection to Aequitas.

Samuels Yoelin Kantor securities attorneys Robert Banks and Darlene Pasiczny are heading up the Aequitas investigation. Mr. Banks recently updated concerned investors with information regarding their choices for pursuing recovery. Please contact our office to discuss your situation confidentially. You can call 800-647-8130 or reach us by email atbbanks@samuelslaw.com or info@investordefenders.com

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Aequitas investment advisory firms and portfolio managers

The following Aequitas advisory firms and portfolio managers are of interest to us regarding their sale of Aequitas notes and funds:

Private Advisory Group

Strategic Capital Group

Summit Advisor Solutions

Fieldstone Financial Concert

Integrity Bank and Trust

GPS Capital Management

CLA Wealth Advisors

CliftonLarsonAllen

Innovator Management, LLC

Chris Bean

Tom Szabo

Tony Ramirez

Mark McArthur

Bill Malloy

Larry Dozier

Craig Johnsen

Eric Willer

Samuels Yoelin Kantor securities attorneys Robert Banks and Darlene Pasiczny are heading up the Aequitas investigation. Mr. Banks recently updated concerned investors with information regarding their choices for pursuing recovery. Please contact our office to discuss your situation confidentially. You can call 800-647-8130 or reach us by email at bbanks@samuelslaw.com or info@investordefenders.com

 

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What is going to happen to my Aequitas investment?

At this point, nobody can say with certainty what will happen to Aequitas

No one knows the answer to that question with certainty. Dividend payments have been suspended. Aequitas is reporting that it has hired a restructuring company to evaluate the situation. To me, that means that Aequitas is considering an orderly liquidation of the company and its assets. Given the recent mass layoffs, the suspension of dividends, the SEC investigation, and the way that the notes were reportedly marketed and sold, my best guess is that Aequitas will end up either in a bankruptcy or some court-supervised liquidation. Hopefully, that will result in a return of at least some of the principal back to investors, but that will depend upon a number of factors, including what assets are available after paying the costs of the liquidation, the number of creditors who may have to be paid before investors, and the number and amount of investor claims out there.

You are welcome to call our office to discuss your situation with Mr. Banks, a securities attorney with more than 33 years representing investors in arbitration and in court.

If you have questions, concerns, or information about Aequitas investments, please contact our office at 800.647.8130. Our home page gives an introduction to this informational site and you may review our extensive credentials and experience here.

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Aequitas News Chronology

A review of the news since July 2015:

07/15/2015- Aequitas played crucial role in Corinthian student loans deemed predatory

01/25/2016 – Aequitas Capital reorganizes and downsizes

01/30/2016 – Aequitas financial ills accelerate with second layoff in a week

02/01/2016 – More layoffs for Aequitas as ‘skeleton crew’ prepares to lead once-prosperous firm

02/05/2016 – Matthew Kish: The unanswered questions about Aequitas

02/18/2016 – Aequitas announces plans to lay off 80 workers

02/22/2016 – Investment adviser: Aequitas lied to investors, hid financial weakness

02/22/2016 – Law firms launch Aequitas investigations, one alleges ‘Ponzi scheme’

02/23/2016 – Report: Aequitas Capital Under Investigation Amidst ‘Stunning’ Collapse

03/04/2016 –  A look at Aequitas – history of litigation

 

If you have questions, concerns, or information about Aequitas investments, please contact our office at 800.647.8130. Our home page gives an introduction to this informational site and you may review our extensive credentials and experience here.

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Recent Aequitas Article Quotes Securities Attorney Robert Banks

Portland Securities Attorney Robert Banks was quoted today in an Oregonian article that offers one of the first inside looks at the Aequitas situation.

“It is absolutely outrageous that a financial adviser would put important client retirement money into promissory notes issued by a company that was already on the ropes,” Banks said.

 Jeff Manning of The Oregonian, who has been following the Aequitas story closely for some time, reports that Chris Bean, a 41-year-old investment adviser with Private Advisory Group, had 330 clients invested in Aequitas, more than any other financial adviser in the country. Bean and his firm were part of a national network of investment advisers who raised money for Aequitas.

Manning’s article reports that an Aequitas affiliate bought a controlling interest in Bean’s firm in July of 2014 and investors were encouraged to continue putting money into funds even after Aequitas showed signs of financial trouble. Mr. Bean  insists that Aequitas executives misleadingly led him and his firm to believe that Aequitas presented a strong financial position.

Investor Defender attorneys Bob Banks and Darlene Pasieczny are representing clients who may have claims against Aequitas. The law generally provides that a licensed financial adviser cannot successfully solicit or sell an investment to a client by use of misrepresentations or omissions of material fact.  If that law is violated, investors are entitled to a return of their investment proceeds upon tender of their investment back to the sellers.  To see how that law might apply to the unique purchase circumstances of individual or institutional investors, you may call our office at 800.647.8130 or contact securities attorneys Bob Banks and Darlene Pasieczny by e-mail at info@investordefenders.com.

Investor Defenders is a practice group of Samules Yoelin Kantor LLPfocused on representing investors in situations where professional misconduct resulted in a financial loss. Lead securities attorney Bob Banks has earned a national reputation for his success fighting on behalf of investors in FINRA arbitration and in court for 33 years.  Consultations are complimentary and most cases are done on  contingency fee, meaning that our clients do not pay any attorney fees unless we recover losses.

 

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Losses In Aequitas Income Opportunity Fund II

Representing Aequitas Investors

We are representing investors who recently purchased Aequitas Income Opportunity Fund II. Based on our investigation, at least some investors in this fund were incorrectly advised that they were investing in short term loans that could be redeemed during any 90 period.  Equally significant, investors report to us that they were never advised about the financial difficulties Aequitas was already facing at the time that they purchased the Income Opportunity Fund II.  As I was quoted as saying in The Oregonian on February 20, “It is absolutely outrageous that a financial adviser would put important client retirement money into promissory notes issued by a company that was already on the ropes,”

What The Laws Say For Aequitas Investors

The law generally provides that a licensed financial advisor cannot successfully solicit or sell an investment to a client by use of misrepresentations or omissions of material fact.  If that law is violated, investors are entitled to a return of their investment proceeds upon tender of their investment back to the sellers.  To see how that law might apply to the unique purchase circumstances of individual or institutional investors, you may call our office at 800.647.8130 or contact securities attorneys Bob Banks and Darlene Pasieczny by e-mail at info@investordefenders.com.

Investor Defenders is a practice group of Samules Yoelin Kantor LLP focused on representing investors in situations where professional misconduct resulted in a financial loss. Lead securities attorney Bob Banks has earned a national reputation for his success fighting on behalf of investors in FINRA arbitration and in court for 33 years.  Consultations are complimentary and most cases are done on  contingency fee, meaning that our clients do not pay any attorney fees unless we recover losses.

 

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