Peiffer Rosca Wolf Investigating Charles Blackwelder and CFS Inc. for Alleged Securities Fraud
The Peiffer Rosca Wolf investor rights lawyers are currently investigating three family members from Carmel, Indiana whom have been accused of securities fraud by the Indiana Secretary of State’s Office. Charles Blackwelder, his son Chad, and his daughter Cara Grumme allegedly hawked $10.4 million of ownership interests in rental properties to elderly investors. An exact amount will probably not be available until all the investors come forward and report their losses.
Blackwelder and his offspring own CFS Inc., a licensed brokerage firm that has been operating since 1998. Blackwelder and the other defendants, however, did not bother to register its real estate securities offerings with the state of Indiana, according to regulatory documents reviewed by attorneys Joe Peiffer and Jason Kane. Blackwelder was also reportedly not registered to sell these types of securities.
Indiana’s Securities Division Asking for Restitution and Civil Penalties
Indiana’s securities division is asking that the defendants pay restitution to the investors as well as civil penalties. The Peiffer Rosca Wolf investor rights lawyers are looking into statements from the defendant’s attorney which openly stated that Blackwelder and his children were not required to register these sales, because Indiana does not classify real estate as a security.
Signs of impropriety arose last year when some clients began receiving foreclosure notices on at least six properties while a few other homes in CFS’s portfolio became overleveraged because the entire equity in the properties had already been sold to previous investors, according to papers being assessed by Joe Peiffer and Jason Kane.
Investor rights Lawyers Investigating
The Peiffer Rosca Wolf investor rights lawyers often represent investors who lose money as a result of securities fraud. They are currently investigating Blackwelder and CFS Inc., and 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 Blackwelder’s investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.