TAG | broker participating in real estate investments with clients
Comments off · Posted by admin in FINRA
On the U. S. Securities and Exchange Commission’s website, it was announced that the Securities and Exchange Commission (SEC) charged Mountain View, Calif.-based JSW Financial Inc. and five officers for defrauding investors in two real estate funds, alleging that the firm used investor funds to prop up the officers’ own failing real estate development projects while concealing the loss of $17 million of investors’ money.
In the article it says that the SEC alleges that from 2002 to 2008, JSW and its predecessor, Jim Ward & Associates (JWA), created two real estate investment funds – Blue Chip Realty Fund and Shoreline Investment Fund – and told investors that their money would be used to make loans secured by residential real estate. In reality, according to the SEC, the firms’ officers used most of the money to make unsecured and undocumented loans to entities that the officers themselves controlled, which were suffering mounting losses and protracted delays on Silicon Valley real estate development projects. Meanwhile, as the enterprise collapsed, investors continued receiving monthly statements showing steady growth in the value of their portfolios.
In the SEC’s complaint, filed in federal district court in San Francisco, names as defendants founder James S. Ward and Edward G. Locker (both of Ohio) and David S. Lee, Richard F. Tipton and David C. Lin (all Silicon Valley residents). The complaint alleges that JSW and JWA, through these individual officers, breached their fiduciary duties by misusing investors’ money to benefit the officers rather than the funds. The SEC also alleges that the officers concealed millions of dollars in losses from Blue Chip and Shoreline investors by sending fraudulent account statements claiming that the Funds were earning more than 10% in annual profits, until the scheme collapsed in November 2008 and the officers finally revealed to investors that nearly all of the Blue Chip and Shoreline loans were unsecured. The SEC also alleges that Ward and Locker together took $900,000 of investor money to purchase homes for themselves.
On the SEC’s website it was announced that the SEC’s complaint charges JSW, Ward, Lee, Locker, Tipton and Lin with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint also charges JSW with violating Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 (Advisers Act) and Rule 206(4)-8 thereunder, and charges Ward, Lee, Locker, Tipton and Lin with aiding and abetting violations of Sections 206(1), 206(2) and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder. The SEC seeks injunctive relief and disgorgement of ill-gotten gains against JSW, Ward, Lee, Locker, Tipton and Lin, as well as monetary penalties against the five officers. The complaint also seeks disgorgement of ill-gotten gains and appointment of a receiver over Blue Chip and Shoreline as relief defendants.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
Blue Chip Realty Fund · broker participating in real estate investments with clients · broker theft from customers · brokers stealing funds from customers · brokers taking customers money · brokers taking investors money to purchase homes · David C Lin · David S Lee · Edward G Locker · elder abuse in investments · Financial Industry Regulatory Authority · FINRA · finra lawyer · fort lauderdale securities fraud lawyer · fort lauderdale securities lawyer · Ft. Lauderdale Securities Lawyer · investment fraud · James Ward · Jim Ward & Associates · JSW · JSW Financial Inc · JSW Mountain View CA · JWA · Ponzi scheme · real estate investment scheme · real estate investment schemes of JWA & JSW · Richard F Tipton · SEC · Securities and Exchange Commission · securities arbitraton lawyer · securities fraud lawyer · Shoreline Investment Fund · Silicon Valley Ponzi Scheme · Silicon Valley real estate development project scams · Silicon Valley scams · silicone valley real estate investment scheme · Soreide Law Group PLLC · Stock fraud lawyer · targeting elderly investors
Jennifer J. Guelinas (CRD #2814512, Registered Representative, Valparaiso, Indiana)
On FINRA’s website it was announced that they had submitted a Letter of Acceptance, Waiver and Consent in which she was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Guelinas consented to the described sanction and to the entry of findings that she converted at least $500,000 from the brokerage accounts of senior citizen customers of
her member firm by signing, without authorization, wire transfer requests which resulted in the conversion of the funds from the customers’ accounts to outside bank accounts she controlled and to third parties; the customers did not authorize the transfers.
The findings included that Guelinas received compensation from a rental apartment she owned
and failed to disclose the real estate investments, the compensation from the investments
or the rental income to her member firm. FINRA found that Guelinas failed to disclose
material information on her Form U4.
The findings also stated that Guelinas, without authorization, signed wire transfer requests, real
estate purchase agreements and a promissory note on senior citizen customers’ behalf.
The findings also stated that Guelinas arranged and participated in real estate investments
with senior citizen customers of her member firm and received compensation.
(FINRA Case #2010025098101)
If you have become a victim of the alleged fraudulent schemes of Jennifer J. Guelinas, call a Securities Arbitration Lawyer for a free consultation on how you could potentially recover you losses. To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
broker failure to diclose information on U4 · broker not disclosing compensation · broker participating in real estate investments with clients · broker theft from customers · brokers involved in elder abuse · brokers signing on clients behalf · elder abuse · elder abuse awareness · elder abuse by stockbrokers · elder abuse in investments · Financial Industry Regulatory Authority · FINRA · finra lawyer · finra securities arbitration lawyer · fort lauderdale securities fraud lawyer · fort lauderdale securities lawyer · fraud · Ft. Lauderdale Securities Lawyer · hedge funds marketed to elderly clients · investment fraud · Jennifer Guelinas · Jennifer J Guelinas · securities arbitraton lawyer · securities fraud lawyer · Soreide Law Group PLLC · stock broker fraud · Stock fraud lawyer · stock loss · stockbroker misconduct · targeting elderly investors · Unsuitable investments to elderly