Beware of Timeshare Resale Fraud Scam

/in /by

Florida timeshare owners who get a telephone call promising the lure of a monetary refund in exchange for an upfront payment should be alert to fraud.

The Florida Department of Business and Professional Regulation recently issued a consumer advisory after learning that individuals posing as Department employees are allegedly targeting victims of timeshare scams. The callers are asking victims for cash to pursue refunds for the money they lost.

The Department has received at least three complaints from victims who have reported receiving calls from people claiming to be DBPR employees from the “Fraud Unit.”

The victims have already lost money as the result of potential timeshare resale fraud and the callers are asking for cash in order to obtain full repayment for the victims. The Department does not have a “Fraud Unit” and has confirmed that the phone calls are in no way connected with the Department or its regulatory authority.

If you receive a call from someone claiming to be a DBPR employee who is asking for money in order to receive a refund, do not give out any personal or financial information.

If the person calling claims to be a telemarketer, consumers may report the call to the Florida Department of Agriculture and Consumer Services at 1-800-HELP-FLA (1-800-435-7352) or at www.freshfromflorida.com.

A Public Service Announcement from the Fort Lauderdale Law Firm of
Kahn & Resnik, P.L.

The Florida lawyers at Kahn & Resnik, P.L. are available to service your legal needs.

Our concierge approach to the practice of law reflects our philosophy of personalized and confidential attention. When you retain an attorney at Kahn & Resnik, P.L., we work efficiently and effectively to help you achieve your business and personal objectives.

We can assist you in legal matters relating to commercial litigation, divorce, disability law, real estate litigation, securities litigation, and corporate transactions.

We serve business owners, professionals and individual clients across Florida, including Miami, Fort Lauderdale, Boca Raton, West Palm Beach, Naples, Orlando, Tampa, Daytona Beach, Jacksonville, Tallahassee, and other cities throughout the state. Contact Howard N. Kahn, Esq. at 954-321-0176 or online.

Concierge Legal Service Launched by Kahn & Resnik, P.L.

/in /by

The Fort Lauderdale law firm of Kahn & Resnik, P.L., today announces the availability of concierge legal services for Florida business owners, doctors, accountants, other professionals, and families in need of experienced legal counsel.

The firm’s concierge approach to law emphasizes personal attention and responsive service over the life cycle of a business, career or a family generation. Attorneys Howard Kahn, David , and Marcy Resnik provide confidential legal guidance for commercial litigation, divorce, real estate litigation, securities arbitration and litigation, disability law for professionals, and corporate transactions.

Read the full release on this Fort Lauderdale concierge law firm.

Yitzchak Zigdon Settles SEC Charges in CO2 Tech Pump-and-Dump Scheme

/in /by

Yitzchak Zigdon is one of several defendants named in a 2011 SEC complaint relating to a $7 million alleged fraud scheme to sell CO2 Tech stock at artificially inflated prices.

In the original complaint, the Commission alleged that CO2 Tech Ltd. was a sham company without significant assets or operations whose stock prices were quoted in the Pink Sheets. According to the complaint, among other things, Zigdon provided the paper work necessary to establish the account that was used to dump the shares of CO2 Tech on to the market.

The complaint also stated that Zigdon caused materially false and misleading information about CO2 Tech to be disseminated in press releases and on its website. In particular, the complaint alleged that CO2 Tech falsely touted business relationships that the company had not formed, including a relationship with the Boeing Company when, in fact, there had been no communications, correspondence or understandings between CO2 Tech and Boeing.

On January 23, 2013, the U.S. District Court for the Southern District of Florida entered a final judgment by consent against Yitzchak Zigdon in the SEC’s enforcement action against seven defendants concerning the common stock of CO2 Tech Ltd.

The final judgment enjoins Zigdon from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Court also ordered Zigdon to pay disgorgement of $260,000, prejudgment interest of $74,516 and a civil penalty in the amount of $130,000 for a total of $464,516 in monetary sanctions.

In addition, the Court barred Zigdon from participating in an offering of penny stock. Zigdon consented to the entry of the final judgment without admitting or denying any of the allegations of the Commission’s Complaint.

Fort Lauderdale Securities Litigation and Arbitration Attorney

Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.

State of Union Overlooks Healthcare Reform

/in /by

South Florida doctors and patients may have noticed that healthcare reform took a distant second place to the economy in Pesident Barack Obama’s State of the Union speech to Congress last week.

In his 70-minute speech, Obama mentioned either “healthcare” or “health insurance” only 3 times, compared to 6 references in 2011 and 10 in 2010. Medicare and Medicaid were each mentioned just once.

Read more about the conspicuous absence of healthcare reform in an article titled, “State of the Union Speech Long on Jobs, Short on Healthcare,” published by Medscape Medical News.

Mary Jo White Nominated for SEC Chair

/in /by

President Obama nominated Mary Jo White, a former U.S. Attorney for the Southern District of New York, to serve as Chair of the U.S. Securities and Exchange Commission. White would replace Mary Schapiro, who left the agency in December.

Ms. White is currently Chair of the Litigation practice group at the New York law firm of Debevoise & Plimpton, where she concentrates her practice in white collar criminal defense and securities law. Her biography, as outlined below from the law firm’s website, summarizes her career highlights.

Ms. White served as the United States Attorney for the Southern District of New York from 1993 to 2002. She is the only woman to hold the top position in the more than 200-year history of that office, which has the responsibility of enforcing the federal criminal and civil laws of the nation.

Ms. White also served as the first Chairperson of Attorney General Janet Reno’s Advisory Committee of United States Attorneys from all over the country. Prior to becoming the United States Attorney in the Southern District of New York, Ms. White served as the First Assistant United States Attorney and Acting United States Attorney in the Eastern District of New York from 1990 to 1993.

In addition, Ms. White has served as a Director of The NASDAQ Stock Exchange, and on its Executive, Audit and Policy Committee. She is also a member of the Council on Foreign Relations.

Ms. White’s practice concentrates on internal investigations and defense of companies and individuals accused by the government of involvement in white collar corporate crime or Securities and Exchange Commission (SEC) and civil securities law violations, and on other major business litigation disputes and crises. For her criminal work, she leads a Debevoise team that includes eleven former Assistant U.S. Attorneys with extensive experience in major commercial investigations and prosecutions.

Fort Lauderdale Securities Litigation and Arbitration Attorney

Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.

How to Recognize an Investment Scam

/in /by

Con artists peddling investment scams in Miami, Fort Lauderdale, Boca Raton or other South Florida locations work hard to build a personal relationship with their victims.

Watch this FINRA video to learn some of the techniques that con artists use to build trust with potential investors in order to get you to write a check.

There are many investment schemes that a criminal may employ to get you to part with your hard-earned money. Here are a few of the more common scams identified by FINRA, the Financial Industry Regulatory Authority.

  • The “Phantom Riches” Tactic—dangling the prospect of wealth, enticing you with something you want but can’t have. “These gas wells are guaranteed to produce $6,800 a month in income.”
  • The “Source Credibility” Tactic—trying to build credibility by claiming to be with a reputable firm or to have a special credential or experience. “Believe me, as a senior vice president of XYZ Firm, I would never sell an investment that doesn’t produce.”
  • The “Social Consensus” Tactic—leading you to believe that other savvy investors have already invested. “This is how ___ got his start. I know it’s a lot of money, but I’m investing, so is my mom and half her church—and it’s worth every dime.”
  • The “Reciprocity” Tactic—offering to do a small favor for you in return for a big favor. “I’ll give you a break on my commission if you buy now—half off.”
  • The “Scarcity” Tactic—creating a false sense of urgency by claiming limited supply. “There are only two units left, so I’d sign today if I were you.”

Fort Lauderdale Securities Litigation and Arbitration Attorney

Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.

SEC Sues BankAtlantic for Alleged Fraud

/in /by

BankAtlantic Bancorp and CEO Alan B. Levan are charged with alleged fraudulent activity in a civil lawsuit filed by the Securities and Exchange Commission (SEC) on January 18, 2012 in Miami federal court.

The lawsuit alleges that investors were misled about the loan problems at the bank, according to a recent article in the South Florida Business Journal titled SEC Sues BankAtlantic Bancorp, CEO Levan for Alleged Fraud.

Accounting fraud is also alleged, including the improper recording of loans the bank was trying to sell in 2007. Losses that year were allegedly underestimated as a result of accounting “gimmicks.” Additionally, the SEC claims that the bank and Levan made misleading statements in SEC filings and earnings calls during 2007.

Financial penalties are being sought against the company and Levan.

If you held stock in BankAtlantic during the time period covered in the SEC lawsuit, contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq., to discuss your case.

Westor Capital Group of NY Charged with Customer Fund Abuse

/in /by

Westor Capital Group, Inc. of Herkimer, NY and President Richard Hans Bach are to immediately stop the further misappropriation and misuse of customer funds and securities under the terms of a Temporary Cease-and-Desist Order (TCDO) filed by the Financial Industry Regulatory Authority (FINRA).

FINRA is seeking the TCDO to prevent further customer harm that would likely continue before a formal disciplinary proceeding against Westor and Bach could be completed.

In addition, FINRA issued a complaint against Westor and Bach, charging them with failing to allow customers to withdraw account balances and deliver securities, misusing customer securities, failing to maintain physical possession or control of securities, and for operating an unapproved self-clearing business.

In one instance, when a customer sought to withdraw $97,000 from his account, Westor refused. FINRA further charges that Westor, acting through Bach, misused 65,000 shares of customers’ fully paid common stock to effect and cover short sales by another customer, without the authority to do so. As a result, Westor and Bach failed to maintain physical possession or control of securities as required by the federal securities laws and rules.

Westor’s primary business is trading in microcap securities through its own accounts held at several different brokerage firms and has ineffective measures to track and reconcile its customers’ stock positions. This makes it possible for Westor and Bach to conceal the improper use of securities, the complaint alleges.

Under FINRA rules, the individuals and firms named in a complaint can file a response and request a hearing before a FINRA disciplinary panel. Possible sanctions include a fine, an order to pay restitution, censure, suspension or bar from the securities industry.

The issuance of a disciplinary complaint represents the initiation of a formal proceeding by FINRA, in which findings as to the allegations in the complaint have not been made, and does not represent a decision as to any of the allegations contained in the complaint.

Fort Lauderdale Securities Litigation and Arbitration Attorney

Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.

President Obama Sworn In to Second Term

/in /by

The 57th Presidential Inauguration took place today in Washington, DC. Watch the President take the oath of office in the video below.

President Obama also gave his second inaugural address at the U.S. Capitol. The President pledged:

“America’s possibilities are limitless,” he said, “for we possess all the qualities that this world without boundaries demands: youth and drive; diversity and openness; an endless capacity for risk and a gift for reinvention. My fellow Americans, we are made for this moment, and we will seize it — so long as we seize it together.”

Click on the link to read the full text of President Obama’s second inaugural address.

The Fort Lauderdale Law Firm of  Kahn & Resnik, P.L.

The Florida lawyers at Kahn & Resnik, P.L. are available to service your legal needs.

Our concierge approach to the practice of law reflects our philosophy of personalized and confidential attention. When you retain an attorney at Kahn & Resnik, P.L., we work efficiently and effectively to help you achieve your business and personal objectives.

We can assist you in legal matters relating to commercial litigation, divorce, disability law, real estate litigation, securities litigation, and corporate transactions.

We serve business owners, professionals and individual clients across Florida, including Miami, Fort Lauderdale, Boca Raton, West Palm Beach, Naples, Orlando, Tampa, Daytona Beach, Jacksonville, Tallahassee, and other cities throughout the state. Contact Howard N. Kahn, Esq. at 954-321-0176 or online.

Citigroup Fined $725,000 by FINRA for Failure to Disclose Conflicts

/in /by

Citigroup Global Markets, Inc. failed to disclose certain conflicts of interest in its research reports and research analysts’ public appearances, according to The Financial Industry Regulatory Authority (FINRA). The company was fined $725,000.

Citigroup and/or its affiliates managed or co-managed public securities offerings, received investment banking or other revenue from, made a market in the securities of and/or had a 1 percent or greater beneficial ownership in covered companies, and did not make these required disclosures in certain research reports. In addition, Citigroup research analysts failed to disclose these same potential conflicts of interest in connection with public appearances in which covered companies were mentioned.

Research reports published from January 2007 through March 2010 were identified as lacking the required disclosures, according to a January 18, 2012 FINRA press release.

Contact Fort Lauderdale securities litigation attorney Howard Kahn, Esq., if you relied on Citigroup research report from this time period to make investments. A former Certified Public Accountant, Mr. Kahn also serves as an arbitrator for the Financial Industry Regulatory Authority (FINRA).