Peiffer Wolf Carr & Kane Probing Cornerstone Homes Inc., and David Fleet’s Upstate New York Home Restoration Business
The Peiffer Wolf Carr & Kane investor rights attorneys are actively conducting an investigation into David Fleet and his Upstate New York Home Restoration Business, Cornerstone Homes Inc.
On December 12 the SEC declared securities fraud charges against David Fleet, who allegedly sold unsecured notes to investors to finance his real estate operations, according to SEC documents currently being perused by attorneys Jason Kane and Joe Peiffer.
Said documents further allege that David Fleet misrepresented or failed to disclose a number of key facts to investors in Cornerstone Homes Inc., which bought and restored troubled single family homes to sell or rent to low-income customers.
Fleet Allegedly Squandered Between $3 Million and $4 Million of the $6 Million Invested
Attorneys Joe Peiffer and Jason Kane are pouring over SEC documents which allege, among other things, that Cornerstone reportedly told investors that the company did not use bank financing when Fleet was allegedly heavily reliant on mortgaging to banks virtually all of the homes that Cornerstone was purchasing with investor money.
In addition, the SEC further alleges that as the business began to crumble like a dilapidated old house, Fleet neglected to inform his investors as he decided to secretly invest Cornerstone’s funds in the stock options market in an effort to revive keep the company’s financial boat in a troubled real estate waters.
The SEC documents go on to detail how Fleet’s day trading escapades dissipated between $3 million and $4 million of the approximately $6 million that he had invested.
The cherry on top is that this allegedly occurred soon after Fleet sent newsletters to investors, many of them senior citizens, warning that investing in the stock market was risky and they would be better off investing their money in Cornerstone, which eventually filed for bankruptcy, the SEC alleges.
Investor Fraud Attorneys Investigating
The Peiffer Wolf Carr & Kane fraud attorneys often represent investors who lose money as a result of investment misconduct. They are currently investigating David Fleet and his Upstate New York Home Restoration Business, Cornerstone Homes Inc., and the possibility of assisting any investors who believe that they have lost money. 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.
Any Investors who believe they lost money as a result investment through investments with David Fleet and Cornerstone Homes Inc. may contact the investment fraud attorneys at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.