Miami Litigation Attorney Matthew Seth Sarelson Fights for Defrauded Investors
Investors often rely on financial advisors and investment firms to steer them in the best direction regarding where to invest their funds, including existing stocks, IPOs, bonds and their derivatives, or in real estate and business ventures. Unfortunately, some advisors and firms engage in unlawful practices such as:
- Misallocation of funds
- Nondisclosure of risky investments
- Nondisclosure of conflicts of interest
- Violating fiduciary duties
When businesses or financial fiduciaries take advantage of or mislead investors, the aggressive Miami litigation lawyer, Matthew Seth Sarelson, P.A. stands ready to fight for their rights and obtain recovery.
Matthew Seth Sarelson, P.A.’s Paragon Properties Class Action Lawsuit
In June 2011, Miami litigation attorney Matthew Seth Sarelson filed the Third Amended Class Action Complaint against Paragon Properties of Costa Rica and its affiliates and owners. Sarelson’s work in this class action case, which has over 300 named plaintiffs whose out of pocket losses total in excess of $12.5 million, continues to set a new standard for the quality of pleadings filed in complex class action suits. This lawsuit has garnered national attention, including a 2011 article in the print and online editions of SmartMoney Magazine that included the Paragon Properties suit as part of a discussion about the dangers of investing in South American real estate.
The Enron, WorldCom, Stanford and Nuveen Scandals
Enron made headlines after its fraudulent accounting practices, including lying about profits, came to light. Enron’s collapse resulted in 4,000 employees losing their jobs, with investor losses in the billions. WorldCom similarly collapsed after reporting billions of dollars in false earnings. In May 2011, the Financial Industry Regulatory Authority fined Nuveen Investments, the largest manager of closed-end funds, $3 million for creating misleading marketing materials to help sell auction-rate preferred securities.
While the above examples involve large corporations, sometimes investment fraud originates with an individual. Authorities arrested R. Allen Stanford, a Texas financier, in 2009 for allegedly running a Ponzi scheme in which he defrauded investors out of approximately $8 billion. The Stanford scandal affected Floridians directly, given that the company’s second largest office occupied several floors in a prestigious Miami office building. The largest Ponzi scheme in history, perpetrated by Bernie Madoff, also hit South Florida, as many victims of the Madoff scheme resided in Palm Beach County and its surrounding areas.
Companies like Paragon Properties, Enron, WorldCom and Nuveen, and individuals like Stanford and Madoff, should be accountable for their actions, and investors need an aggressive litigator to step in and obtain just compensation for the fraud and deception.
Worried and defrauded investors can contact an aggressive attorney with experience in securities litigation or IPO securities litigation, Matthew Seth Sarelson, P.A. to take the first step toward protecting their assets. We also provide counsel during shareholder and partnership disputes. Call today.