Foreign Investors

Imperia Invest IBC – Affinity Fraud (Deaf Investors)

Published on: October 26, 2011 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. Imperia Invest IBC, Civil Action No. 2:10-cv-00986-B (D. Utah)

On October 6, 2010, the Securities and Exchange Commission obtained a temporary restraining order and emergency asset freeze against Imperia Invest IBC (“Imperia”) for defrauding more than 14,000 investors worldwide. The Commission’s complaint alleges Imperia raised in excess of $7 million, $4 million of which was collected primarily from deaf investors in the United States. In addition to the asset freeze, the court has granted the Commission’s motion for expedited discovery and prohibiting the destruction of documents.

According to the Commission’s complaint filed in the U.S. District Court for Utah, Imperia defrauded investors by soliciting funds via the internet to purchase Traded Endowment Policies (“TEP”), the British term for viatical settlements, claiming to pay investors a guaranteed return of 1.2% per day. The Commission alleges that Imperia promised unrealistic returns to investors. The Imperia website allegedly stated that an initial $50 investment would allow the investor to obtain an $80,000 loan from an unnamed foreign bank which would be used by Imperia to purchase a TEP; Imperia would then trade the TEPs and pay the investor the guaranteed return. The Commission’s complaint alleges that Imperia claimed to be licensed and located in both the Bahamas and Vanuatu when, in fact, it is not licensed to do business or located in either of those countries. It is also alleged that Imperia’s website stated investors could only access their profits by purchasing a Visa debit card from Imperia, but that Imperia has no relationship with Visa and was using the Visa name without authorization. Additionally, the complaint contends that Imperia took proactive steps to conceal the identity of its control persons by using an anonymous browser to host its website, by communicating with all investors via email without disclosing the identity of any control persons and by establishing off-shore Paypal style bank accounts to conceal the recipient of the investment proceeds.

Oil and Gas Fraud – Targeting Foreign Investors – Australia, England and Canada

Published on: January 12, 2011 | By Russell L. Forkey, P.A.

Oil and Gas Fraud – Targeting Foregin Investors:

In our continuing effort to keep foreign investors appraised on investment frauds directed toward them, we are providing you with a copy of a recent Securities and Exchange Commission litigation release concerning an investment that focused on individuals primarily located in Australia, England and Canada. We have also included with this Post a copy of the complaint filed by the SEC.

Securities and Exchange Commission v. Petroleum Unlimited, LLC, Petroleum Unlimited II, LLC, Roger A. Kimmel, Jr., Harry Nyce, Michel-Jean Geraud, Robert Rossi, Joseph Valko, and Morgan Kimmel, n/k/a Morgan Petitti, , Civil Action No. 9:11-CV-80038 (S.D. Fla., filed Jan. 12, 2011)

Securities Fraud Notice for United Kingdom Investors – SEC Enforcement Action

Published on: December 27, 2010 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. Pharma Holdings, Inc., Edward Klapp IV and Edward Klapp Jr. Civil Action No. 10-cv-81615 (S.D. Fla., filed December 22, 2010)

The Securities and Exchange Commission on December 22, 2010 charged Jupiter, Florida-based Pharma Holdings, Inc., its CEO Edward Klapp IV, and its CFO Edward Klapp Jr., with violations of the antifraud provisions of the federal securities laws. The SEC’s complaint alleges that from 2005 through September 2009, Pharma Holdings, purportedly in the pharmaceutical supply business, and the Klapps raised approximately $5 million from at least 80 European investors, primarily residing in the United Kingdom, through the fraudulent offer and sale of Pharma Holdings stock.

The SEC’s complaint alleges that Pharma Holdings and the Klapps engaged various sales offices and agents to conduct Pharma Holdings’ offerings, and also directly offered shares in later offerings to existing shareholders. According to the SEC’s complaint, in connection with its stock offerings, Pharma Holdings issued false press releases and made false postings on its website overstating Pharma Holdings’ sales revenues and net profits, and touting non-existent business agreements with multinational corporations.

Foreign Investors Limit Your Chance Of Getting Fleeced

Published on: December 24, 2010 | By Russell L. Forkey, P.A.

If you are Foreign Investor, Limit your Chance of Getting Fleeced:
Avoid Getting Burned by “Hot” U.S. Stocks or Precious Metal Scams

Many foreign investors, for any number of reasons, including the stability of the U.S. government, its financial system and the regulatory scheme associated with its financial markets, seek to invest in U.S. stocks, precious metals or deposit their funds in U.S. Banks. As a foreign investor unfamiliar with these types of investing, it is of paramount importance that you thoroughly investigate any investment opportunity, including the deposit of your funds into U.S. Banks, and the person promoting it before you consider parting with your money. This is particularly important if you learn about the investment on the Internet or hear about it over the telephone from a broker and/or individual that you don’t know.

The recent globalization of world financial markets and the strength of U.S. banks and securities markets have fueled a strong demand by foreign investors for U.S. stocks and the deposit of funds into U.S. banks. But this increased appetite has, in turn, created new types of fraud. This post describes how some of these scams work, provides tips on how to avoid them, and tells you where to find help.