Affinity Fraud

Cultural Affinity Fraud

Published on: January 1, 2011 | By Russell L. Forkey, P.A.

There are many types of affinity fraud. An example of cultural affinity fraud is reflected by the below described litigation release issued by the Securities and Exchange Commission on December 22, 2010 in the case of Securities and Exchange Commission v. Amit V. Patel, Civil Action No. 0:10-cv-04937 (D. Minn.)

In the release, the SEC announced fraud charges and an asset freeze against Amit V. Patel (“Patel”), a resident of Shoreview, Minnesota, for operating a fraudulent scheme in which he raised at least $2.5 million from at least five individuals that he met in the Indian-American community and Hindu temples in Minnesota. The SEC’s complaint, filed in the U.S. District Court for the District of Minnesota, alleges that Patel, from at least 2008 through the present, also received millions of dollars more from dozens of other individuals. The complaint alleges that Patel took advantage of his cultural affinity and shared religious heritage with his victims, and exploited their trust in his standing in the community.

At the SEC’s request for emergency relief, the Hon. Joan N. Ericksen, United States District Court, District of Minnesota, issued a temporary restraining order against Patel and an order freezing all assets under the control of Patel, in addition to granting other emergency relief.

HomePals Investment Club is a Recent Example of Securities Affinity Fraud – Targeting Haitian – Americans

Published on: December 25, 2010 | By Russell L. Forkey, P.A.

SEC Charges Three South Florida Residents With Operating A Multi-Million Dollar Ponzi Scheme And Affinity Fraud Targeting Haitian-Americans

The Securities and Exchange Commission filed a civil injunctive action on October 16, 2009 against HomePals Investment Club, LLC and HomePals, LLC (together, “HomePals”), and their principals, Ronnie Eugene Bass, Jr., Abner Alabre and Brian J. Taglieri, alleging that they ran a Ponzi scheme and affinity fraud that targeted Haitian-American investors residing primarily in South Florida.

The SEC’s complaint alleges that from April 2008 through December 2008, the defendants raised at least $14.3 million through the sale of unsecured notes to hundreds of Haitian-American investors by promising guaranteed returns of 100% every 90 days. The defendants claimed they were able to generate such spectacular returns through Bass’ purported successful trading of stock options and commodities. The SEC’s complaint further alleges that, in reality, Bass traded no more than $1.2 million of the $14.3 million raised, generated trading losses of 19 percent, and that HomePals used the bulk of the investor funds to repay earlier investors in typical Ponzi scheme fashion. The SEC also alleges that Bass, Alabre and Taglieri misappropriated at least $668,000 of investor funds for personal use.

Affinity Fraud: Beware of Con-Artists Who Claim Loyalty to Your Group – South Florida Affinity Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney

Published on: December 25, 2010 | By Russell L. Forkey, P.A.

South Florida, including Boca Raton, West Palm Beach, Stuart and Jupiter, Affinity Fraud and Misrepresentation , Especially in the Area of Elder Abuse, FINRA Arbitration and Litigation Attorney:

Affinity Fraud:

State securities regulators are warning investors, especially elder people, to be on guard against a rise in affinity group fraud. What is affinity fraud? It`s simple, but the causes that give rise to it are often more complex.