Financial & Securities Fraud Cases
- The following information is a sample of our past results. Not all results obtained by Chapman Law Group have been provided.
- The results are not necessarily representative of results obtained by the lawyer.
- Every case is different and each case must be evaluated and handled on its own merits. The circumstances of your case may differ from the results provided.
- The information provided has not been reviewed or approved by the Florida Bar.
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91 year-old Florida resident victim of elder abuse and financial fraud lost life savings at hands of caretaker and financial advisor
- Venue - FINRA & Sarasota County Court
- Allegations - Financial Fraud, Elder Abuse, Financial Mismanagement, Securities Fraud, Unsuitable Investments and Conversion.
- Facts - Our client is a 91 year-old fairly healthy Sarasota, Florida resident. In 2010 he executed a power of attorney giving his neighbor the right to invest his assets on his behalf. At the time of the power of attorney he had limited income and limited assets ($350,000). The power of attorney solicited the services of her financial planner, a member of FINRA. In the beginning everything seemed okay. However, in late 2010, the financial planner, working with his spouse, son, and the housekeeper, convinced the power of attorney and the client to write checks in excess of $200,000 payable to the financial advisor’s spouse, son and housekeeper. The financial advisor also purchased a variable annuity for $165,000. The annuity was an unsuitable investment for a 90+ year-old gentleman with very limited resources. The annuity was purchased in order to generate commissions for the financial advisor and not for the benefit of our client. By early 2011 the client’s assets were reduced to nothing except the variable annuity. The financial advisor, spouse, son, housekeeper and the broker associated with the financial advisor were all sued in FINRA and state court for elder abuse, unsuitable investments, fraud, conversion, and failure to supervise.
- Disposition - FINRA award for treble damages
- Attorney - Ronald Chapman
22 clients reach confidential settlement in the FINRA arbitration case against Mutual Service Corp.
- Venue – FINRA, Private Mediation
- Allegations – Negligence, Misconduct, Breach of Fiduciary Duty, Fraudulent Misrepresentation, Conversion, Securities Fraud, State Securities Violations, Suitability Claims and Unsuitable Investments
- Facts- Investment advisor and financial planner Keith Epstein fraudulently converted in excess of $5,000,000 of client investments to his personal use. Mr. Epstein used these funds to support a lifestyle complete with exotic dancers, expensive cosmetic procedures for the exotic dancers, gambling, vacations, and over indulging in an overall playboy lifestyle. A FINRA claim was filed against Epstein’s broker Mutual Service Corp. The claim alleged Mutual Service failed to properly supervise Epstein, failed to implement a blotter system designed to flag questionable investment practices, and failed to stop the unsuitable sale of annuities’ to vulnerable senior citizens and retirees. Prior to FINRA scheduled arbitration the parties agreed to private mediation.
- Disposition – The case was settled on the second day of mediation for a confidential amount. The settlement details are confidential.
- Attorney - Ronald Chapman
7 Clients v financial advisor - Settled
- Venue - Oakland County Circuit Court
- Allegation - Fraud, Professional Negligence, Conversion and Breach of Fiduciary Duty
- Facts - Clients individually hired Keith Epstein as their financial advisor. Epstein systematically transferred all client funds from secure retirement accounts to variable or fixed annuities without conducting any type of suitability study. Over the years Epstein withdrew funds from the clients' accounts, many withdrawals were unauthorized, and he convinced the clients to reinvest the funds in fraudulent mutual funds, KLE and E & R. Epstein then cashed the checks and deposited the funds in to his own personal account. Epstein concealed the events by preparing false and misleading statements. Epstein fraudulently converted in excess of $2,000,000 to his own use.
- Disposition - The civil case was recently settled. Confidentiality agreement prohibits disclosure of the amount. A FINRA claim is pending against Mutual Service Corporation, the broker/dealer supervising Epstein
- Attorney - Ronald Chapman
2 Clients v financial advisor - $2,500,000 to be award for damages
- Venue - Oakland County Circuit Court
- Allegation - Fraud, Professional Negligence, Conversion and Breach of Fiduciary Duty
- Facts- Clients hired Keith Epstein as their financial advisor. Epstein very quickly moved funds from clients retirement accounts to variable annuities without conducting a suitability study. Epstein then fraudulently withdrew funds from the accounts causing penalties and early withdrawal charges. Epstein then convinced clients to invest over $636,000 in two fraudulent mutual funds KLE and E & R. Epstein received the investment checks and converted the funds to his own use.
- Ruling - Judge Sosnick ruled against Epstein finding him liable for: Fraud, Professional Negligence, Conversion, and Breach of Fiduciary Duty. Damages in excess of $2,500,000 will be awarded. A FINRA arbitration claim is pending against Mutual Service Corporation, the broker/dealer supervising Epstein.
- Attorney - Ronald Chapman
11 Clients v financial advisor - $20,000,000 Judgment
- Venue - Oakland County Circuit Court
- Allegation - Fraud, Professional Negligence, Conversion, Breach of Fiduciary Duty and Civil Conspiracy
- Facts- Eleven families individually hired their financial advisor. Several clients were in their 70’s or 80’s and suffering from various medical conditions including macular degeneration and early Alzheimer. The advisor systematically transferred all client funds from secure retirement accounts to variable or fixed annuities without conducting any type of suitability study. He then fraudulently withdrew funds claiming them to be taxes. Over the years the advisor withdrew funds from client accounts, many withdrawals were unauthorized. He convinced the clients to reinvest the funds in fraudulent mutual funds. He then cashed the checks and deposited the funds into his own personal account. He concealed the events by preparing false and misleading statements. The advisor fraudulently converted in excess of $5,000,000 to his own use.
- Disposition - The Court entered a judgment against defendants for $20,000,000 for Negligence, Breach of Fiduciary Duty, Fraudulent Misrepresentation, Statutory Conversion and treble damages. A FINRA claim is pending against Mutual Service Corporation, the broker/dealer supervising advisor.
- Attorney - Ronald Chapman
Client v defendants Re: forged Power of Attorney and unauthorized withdrawal of funds
- Venue - Wayne County Circuit Court
- Allegation - Elder Abuse, Conversion and Financial Fraud
- Facts - Chapman and Associates recently filed a complaint against several defendants, including a large bank, for breach of contract, negligence, violations of Uniform Commercial Code, statutory conversion and misconduct of a notary public. Client, an elderly woman who suffered a stroke, was victimized by defendant who used a forged Power of Attorney to gain access to client’s financial accounts. Client’s bank made no attempt to verify the validity of the POA and allowed defendant to gain full access to client’s funds over several years while client was in and out of the hospital. The bank also allowed the defendant to open new accounts in client’s name which defendant used to deposit client’s pension checks and convert the funds for his personal use.
- Attorneys - Ronald Chapman & Carly Van Thomme
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