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SEC Charges Middlesex Mortgage Group and Masanotti with Running $5.9 Million Ponzi Scheme The U.S. Securities and Exchange Commission (“SEC”) has alleged that unregistered investment adviser John A. Masanotti, Jr. (“Masanotti” of Darien, Connecticut and his company, Middlesex Mortgage Group LLC (“MMG”), with fraud in connection with investments that MMC induced from outside investors, totaling least $5.9 million, beginning in 2016. Many of the MMG investors allegedly liquidated securities they held in retirement accounts to invest in the fund. The SEC Complaint is accessible here. According to the SEC. MMC and Masanotti allegedly used investor money to make Ponzi-like payments to investors and also used some investor funds for Masanotti’s “extravagant personal expenses,” According to the SEC, Masanotti told investors that MMC would invest their money in foreign currencies, securities and initial public offerings, but in fact MMC appears to have made no investments on their behalf. After receiving their initial payments, Masanotti continued to deceive investors to perpetuate the investment scheme, including via payments that purported to be returns on capital invested, the SEC said. Over the course of the scheme, Masanotti allegedly used more than $3 million of Middlesex’s assets for his and his family’s personal benefit, according to the suit. The SEC accuses Masanotti of violating the Securities Act and the Exchange Act. A Ponzi scheme is a purported investment vehicle in which early investors in the scheme are paid funds from later investors, thus creating the illusion of legitimacy and solvency. Ponzi schemes are often doomed to failure once the perpetrator of the scheme can no longer pay out investors through newly raised money. Some warning signs that every investor should remain mindful of when vetting a potential investment and conducting due diligence include the promise of high returns with guarantees of little or no risk; overly consistent returns with little or no volatility in the in
14 Nov 2023, 4:30 pm by InvestorLawyers
Many of the MMG investors allegedly liquidated securities they held in retirement accounts to invest in the fund. [read post]
13 Nov 2023, 4:07 am by Peter Mahler
The petitioner alleged that because the LLC had no written operating agreement as required by LLC Law Section 417(a), the entity did not attain LLC status and therefore had to be treated as a partnership. [read post]
9 Nov 2023, 6:22 am by Don Asher
  Specifically, Rana Meal Solutions LLC of Bartlett, Illinois, has a pattern of behavior documented by OSHA where its workers are exposed to known machine dangers. [read post]
30 Oct 2023, 11:26 am by centerforartlaw
Additionally any client with art assets and legal fees could be at risk for the other parties to stake claim in their asset or fuel dispute on whether the client’s artwork should be sold to address not only attorney’s fees, but other legal fees, and case-related debts. [read post]
26 Oct 2023, 12:50 pm by The White Law Group
For a free consultation with a securities attorney, please call (888) 637-5510.The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. [read post]
25 Oct 2023, 6:02 am by The White Law Group
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. [read post]
23 Oct 2023, 11:07 am by The White Law Group
These factors encompass liquidity requirements, the time horizon for the investment, risk tolerance, age, and income level. [read post]
23 Oct 2023, 4:44 am by Peter Mahler
” In neither of those cases was there a “liquidation” or a “dissolution” of the LLC. [read post]
20 Oct 2023, 2:40 pm by CFM Admin
The complaint alleged that the adviser’s marketing materials made claims of annualized returns of 2700%, but the underlying data was taken from only a three-week period. [read post]
18 Oct 2023, 7:43 am by The White Law Group
In June 2016, Couture purportedly liquidated one client’s variable annuities to fund withdrawals by another client. [read post]
16 Oct 2023, 4:24 am by Peter J. Sluka
  In intracompany LLC disputes, few things are more important than what the operating agreement has to say on the subject. [read post]
9 Oct 2023, 2:34 pm by Kevin LaCroix
This article is co-authored by Sarah Abrams, Head of Professional Liability Claims, Bowhead Specialty Underwriters, Inc., Elan Kandel, Member, Bailey Cavalieri LLC and James Talbert, Associate, Bailey Cavalieri LLC. [read post]
9 Oct 2023, 1:17 pm by Daniel F. Bernard
CM & Associates Construction Management LLC, however, a New York Appellate Division Court held that § 191 permits employees to seek liquidated damages for the untimely payment of wages, even if the wages are paid in full. [read post]
4 Oct 2023, 6:00 am by Written on behalf of Peter McSherry
The Minutes of Settlement provided that if MM breached such agreement, she would be required to repay the settlement payment as liquidated damages, and would be responsible for any additional damages incurred by LLC. [read post]
4 Oct 2023, 6:00 am by Written on behalf of Peter McSherry
The Minutes of Settlement provided that if MM breached such agreement, she would be required to repay the settlement payment as liquidated damages, and would be responsible for any additional damages incurred by LLC. [read post]
26 Sep 2023, 9:01 pm by renholding
Several banks assigned portions of the term loan made to Millennium Laboratories LLC (“Millennium”) to institutional investor groups, including mutual funds, hedge funds and other institutions. [read post]