Providence Financial Investments Inc.—Securities Fraud, Unregistered Securities Offering
Providence Financial Investments Inc. Orchestrated an “Ongoing Fraudulent and Unregistered Securities
Offering,” the SEC Alleges
Providence Financial Investments Inc., allegedly ran an investment scheme which the SEC called an “ongoing fraudulent and unregistered securities offering”, according to according to a federal court filing in Minneapolis currently under review by attorneys Joe Peiffer and James Booker.
Providence allegedly bought the bills of small businesses in Brazil, which gave them cash-in-hand upfront, then took over the task of collecting from their customers. It bundled these debts into securities with a 12- or 24-month maturity, which it then sold to investors who expected a fixed-rate return of generally 12 or 13 percent, the aforementioned filing reports.
The Peiffer Wolf securities lawyers are currently investigating Providence Financial Investments Inc. alleged unregistered securities offerings.
Many Providence Financial Investments Inc. Clients Allegedly Rolled Their Investments Over as Their Notes Matured Rather than Cashing out, Investing Principal and the Return in a New Promissory Note
Many of Providence’s clients have allegedly rolled their investments over as their notes mature rather than cashing out, investing their principal and the return in a new promissory note, according to a federal court filing in Minneapolis currently being examined by attorneys Joe Peiffer and James Booker.
The SEC further alleges that Providence’s “current financial situation appears extremely tenuous” and that the firm currently retains less than $250,000, dispersed through 28 accounts, and it that it has met challenges collecting certain of its accounts receivable from Brazil, the aforementioned filing reports.
To make matters worse, the recent devaluation of the Brazil real by as much as 50 percent compared to the rate of the 2015 U.S. dollar means Providence is not able to repatriate its Brazilian assets to repay U.S. investors without suffering huge currency exchange losses, the filing notes.
Securities Lawyers Investigating
The Peiffer Wolf securities lawyers often represent investors who lose money as a result of participation in unregistered securities offerings and are currently investigating Providence Financial Investments Inc.’s alleged participation in unregistered securities offerings. 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 Providence Financial Investments Inc.’s alleged participation in unregistered securities offerings are encouraged to contact the securities lawyers at Peiffer Wolf, Joe Peiffer or James Booker, for a free no-obligation evaluation of their recovery options, at 504-523-2434.