The Investor's Lawyer - by Georgia Securities Lawyer Joel Beck

Don't Become a Ponzi Scheme Victim

Ponzi schemes.  They're in the news this year, and many folks have discovered that their "investment" turned out to be in a fraudulent scheme.  According to news releases from the Securities and Exchange Commission, the SEC initiated legal action over five ponzi schemes this month (April 2009) alone.  So what exactly is a ponzi scheme, and how do you keep from becoming a victim?

Securities Arbitration Case Filings Up in 20009

According to FINRA Dispute Resolution, January and February 2009 saw a total of 1,065 arbitration claims filed in their arbitration forum.  This increase from a total of 561 cases filed this same period in 2008 represents a 90% increase in year to date filings.  Overall, in 2008, 4,982 cases were filed with FINRA Dispute Resolution, a 53% increase over 2007, when there were 3,238 cases filed.

Criminal Charges Filed Against Lawyer Robert Copeland in Connection with Marietta, Georgia PONZI Scheme

As reported in an earlier post, last week the SEC brought a civil action against Georgia attorney Robert P. Copeland in connection with an apparent Ponzi scheme that was alleged to have defrauded investors out of millions of dollars.  This week, US Attorney David Nahmias brought criminal charges against Copeland, alleging that he committed wire fraud, in connection with a Ponzi scheme that operated from 2004 to 2009.  In the fraud, according to the US Attorney's office, Copeland deceived more than one hundred investors out of millions of dollars, promising them returns of up to 15% on their money.  Copeland, in addition to soliciting investors himself, obtained investor funds through sales made by financial advisors whom he paid a commission.

Its too early to tell if investors will receive any of their funds returned as a result of the civil and criminal charges brought against Copeland.  Importantly, investors whose stockbrokers or financial advisors sold the Copeland investment to them may have other avenues available to them to seek compensation for their losses.  If you invested in the Robert Copeland ponzi scheme through a financial advisor or stockbroker, you should immediately consult with a securities attorney.  Joel Beck of The Beck Law Firm, LLC, a former NASD Enforcement Attorney, represents investors in securities arbitration cases.  If you believe you've been the victim of broker fraud, contact The Beck Law Firm, LLC today for a consultation. 

The Beck Law Firm Investigates Marietta, Georgia Ponzi Scheme

Recently, The Beck Law Firm has been contacted by investors who invested in an apparent ponzi scheme operated in Marietta, GA.  According to a report from the Atlanta Journal-Constitution, Marietta attorney Robert Copeland, who has not been criminally charged, was sued by federal authorities, and was alleged to have defrauded investors out of more than $30 Million. 

It appears that investors were investing in a "private mortgage lending" program and told that their investment, which was safe and to be secured by real estate, would earn them returns of 15% or more.  It also appears that the investments were made with various entities possibly controlled by Copeland, including "Advanced Asset Strategies"

Its too early in the investigation by federal authorities to determine whether investors will be able to recoup any of their investment with the help of the authorities.  However, for those investors who purchased their investment through a stockbroker, they may have options to seek the return of their investment from the broker and brokerage firm through FINRA securities arbitration.  Those investors should immediately contact an experienced securities attorney for a consultation.

If you believe you've been the victim of broker fraud, contact The Beck Law Firm, LLC today for a consultation to discuss your potential claims.