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 Alan Rosca 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 Rosca 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 Alan Rosca 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 Rosca 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 Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1163 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.