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Ex-wife and friend caught up in man’s securities fraud case

On behalf of Brewer, Pritchard & Buckley, P.C. posted in securities fraud on Friday, August 10, 2018.

One of the biggest fears for people who are involved in handling investments as a broker or as part of a company is the Securities and Exchange Commission making allegations against them. Even if the person was not involved or got caught up in a situation he or she was unaware of, the mere stain of being mentioned as part of a securities fraud investigation or due to violations of federal securities laws can follow them around forever. The SEC does not pursue cases it does not think it can win and a conviction can result in a long jail sentence and a negative perception in the business community and with the public. This does not mention the financial ramifications. It is vital to lodge a strong defense against these charges.

A man who took on the persona of “Frack Master” and was accused of committing fraud in the oil and gas industry has seen his case extend to his former wife and a friend. The judge in the case against the man issued an order that the former wife pay $900,000 from the money she had gotten from her ex-husband from his scheme. The friend was ordered to pay $222,000 earlier this year. The ex-wife and friend have not admitted to taking part in the enterprise.

The man was part of a fundraising drive that yielded $80 million. His alleged pitch was that he was skilled at energy investment and could help them earn strong returns. Rather than invest, the money was spent on various diversions including vacations, escort services and clubs. The case is continuing as the man is dealing with numerous securities-related charges. The company is being controlled by a court appointee.

Since the federal securities laws can be so nuanced, it is not unusual for ancillary people to get caught up in a larger criminal investigation and face charges of their own. It is preferable to have legal help to avoid running afoul of the SEC, but when there is an arrest and people claim to have lost money investing, it becomes even more crucial to have legal assistance. Those who are being accused themselves or were just on the outskirts of what supposedly happened must have a defense against securities fraud. An experienced business law firm can help.

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