No Recovery, No Fee

424-835-5733 | 310-525-3516

You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Trickle-down benefits didn't materialize for defrauded investors

Due diligence.

Actually, lack thereof.

That's what it really amounted to for a large number of investors, including some from Southern California, who were mightily scammed in a ruse perpetrated by co-founders of a firm called Prometheus Law.

Here was the bottom-line hype peddled to about 200 investors who collectively gave Prometheus' founders in excess of $8.5 million in exchange for promises that they would recoup up to 300 percent returns on their investments: their money would fund the company's business model, pursuant to which medical malpractice plaintiffs would be found and referred to a law firm, which would return a portion of recoveries in cases won back to Prometheus and, in turn, to its lucky contributors.

That happy scenario never materialized. In fact, noted a recent article in The San Diego Union-Tribune, only a tiny fraction of lawsuits were ever litigated, with only about 1 percent settling. That left the lofty promises made regarding huge investment kickbacks flatly illusory, with investors taking material losses as a result.

Other promises also proved to be nothing more than empty rhetoric. The scammers told their investors that deposited funds were secured by a lien, which was a lie. The assurance that investments would be returned on demand also proved to be false.

In fact, most investors lost every dime that they handed over.

Both of Prometheus' founders have pleaded guilty to conspiracy to commit securities fraud. One of them has agreed to pay the full amount of investment monies back to those who were defrauded.

A receiver has been appointed to represent the investors.

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