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Securities law: 2 men accused of Ponzi scheme

People spend a great deal of time pondering how to best handle their money. In order to prepare for their future, many in California seek the assistance of others to help them with investments. Unfortunately, violations of securities law, including investment fraud, can leave investors suffering severe losses.

Two men who ran a company called Blackbird Capital Partners in another state have recently been accused of operating a Ponzi scheme. They allegedly convinced clients to invest a total of $3 million. One of the men reportedly told potential investors that he used millions of dollars to create an algorithm that would help generate a 300 percent return on investment.

Unfortunately, one of the men allegedly confessed to an investor that he had made a mistake that resulted in the loss of $6 million. While he initially blamed the loss on Great Britain's decision to leave the European Union, he is said to have eventually confessed to having used the money to cover other mistakes. According to reports, when the investor confronted the man about fraud, he reportedly confessed that he was a compulsive liar and promised he would earn the money back as long as the investor did not report him to authorities. The Securities and Exchange Commission has since taken legal action against the men.

Many people in California lose their life savings as a result of such violations of securities law. If an investor feels that a financial loss came as a result of fraud or a broker or financial representative who mishandled his or her money, there are legal options available. In some cases, an investor facing a loss could recover some or all of the money.

Source: deseretnews.com, "Feds accuse Utah men of running $3 million Ponzi scheme", Dennis Romboy, Nov. 30, 2016

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