The alleged $110 million Inofin fraud has investment attorneys looking for investors who suffered losses as a result of their investments with Inofin. According to the Class Action Complaint filed by the Securities and Exchange Commission in April, 2011, Inofin was in violation of the Massachusetts Uniform Securities Act. The complaint has been filed against Inofin, Inofin President Michael Cuomo, Inofin Chief Operating Officer Melissa George and Inofin Chief Executive Officer Kevin Mann, and alleges that the group sold unregistered securities and acted as a Massachusetts broker-dealer without being registered.
Despite the fact that Inofin was never registered with the Massachusetts Securities Division of the Offices of the Secretary of the Commonwealth or the SEC, the company allegedly collected around $110 million by selling unregistered securities. Unregistered securities are securities that have not been registered with the Securities and Exchange Commission, and selling them violates the Securities Act of 1933. For more information on unregistered securities, please see the previous blog entry, “Investment Fraud: Unregistered Securities.”
According to the complaint, Inofin and its principal officers violated Section 10(b) (Rule 10b-5) of the Securities Exchange Act of 1934 and Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933. In addition to the selling of unregistered securities, the SEC alleges that material misrepresentations of financial reports were made from 2006 to 2011 in an attempt to hide a negative net worth and the company’s deteriorating financial conditions.
According to one attorney, “When companies and the individuals who run them skirt our national securities laws by selling unregistered securities they must make the investors whole. The investors are victims. They were sold a load of junk dressed up as a legitimate investment.”
Victims of Inofin’s alleged fraud span 25 states. If you incurred losses as a result of investments with Inofin, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact an investment attorney at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.