Lawrence LaBine Accused of Making Misrepresentations to Investors Relating to Sale of Domin-8 Debt Securities
Lawrence M. LaBine, formerly associated with DeWaay Advisory, LLC and DeWaay Financial Network, Inc., violated federal laws designed to protect investors related to his sale of debt securities issued by Domin-8 Enterprise Solutions, Inc., according to a cease and desist order issued by the Securities and Exchange Commission (“SEC”).
LaBine recommended and sold more than 100 of his advisory and brokerage clients an alternative investment in a class of debt securities issued by Domin-8 from approximately July 2008 through August 2009, according to the order issued by the SEC. While LaBine recommended and sold the debt securities to investors, LaBine failed to inform investors that he expected to receive warrants to purchase shares of Domin-8 as a form of compensation for selling the investments, according to the order.
LaBine also failed to inform investors that he was the principal fundraiser for Domin-8 and that Domin-8 was depending almost exclusively on LaBine to raise operating capital on its behalf from approximately February 2009 through August 2009, according to the order.
LaBine was also aware that if he failed to raise sufficient funds from investors, Domin-8 would be forced into bankruptcy, according to the order. LaBine did not inform investors that his ability to sell the debt securities to them was the only thing keeping Domin-8 operating and out of bankruptcy, according to the order.
LaBine also misrepresented to investors their risk of loss on their Domin-8 investments by falsely representing that the illiquid Domin-8 debentures were essentially risk-free while informing investors that the investment was safe, secured, and that investors would not lose any of the money they invested in Domin-8, according to the order.
The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.
Broker: Lawrence M. LaBine
Status: INVESTIGATED by Peiffer Rosca.
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