Providence Financial Investments Inc.—Securities Fraud, Unregistered Securities Offering
Providence Financial Investments Inc. Allegedly Raised $64 Million from 420 Investors to Invest in Purportedly Unregistered Promissory Notes Used to Finance the Purchase of Accounts Receivable in Brazil
Providence Financial Investments Inc., based in Miami, allegedly raised $64 million from 420 U.S. investors to invest in unregistered promissory notes used to purportedly finance the purchase of accounts receivable in Brazil, according to a federal court filing in Minneapolis currently under review by attorneys Joe Peiffer and James Booker.
The SEC has labeled the investment scheme as an “ongoing fraudulent and unregistered securities offering”, further claiming that said securities have not been registered with the SEC and brokers selling them are unregistered, according to the aforementioned filing reports.
The Peiffer Wolf securities lawyers are currently investigating Providence Financial Investments Inc. alleged unregistered securities offerings.
Providence and its Brokers Allegedly Failed to Disclose to Investors that Brokers Were Paid a 6% Commission for Selling Securities, that Providence Execs Received Nearly $9 Million in Compensation from the Firm’s U.S. Entities in Four Years
Providence and its brokers allegedly failed to disclose to investors that brokers were paid a 6 percent commission for selling said securities, and that executives from Providence purportedly received nearly $9 million in compensation from the firm’s U.S. entities over four years, according to a federal court filing in Minneapolis currently being examined by attorneys Joe Peiffer and James Booker.
Furthermore, the SEC alleges that only two-thirds of investors’ money went toward Brazilian receivables and that in 2015 the firm owed investors $64 million, while in contrast their Brazilian affiliates held only $10.6 million in receivables assets.
Finally, the SEC reports that Providence execs have been “unable to answer basic questions about their organizational structure, their use of investor proceeds and their financial condition,” the SEC said.
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 and James Booker, for a free no-obligation evaluation of their recovery options, at 504-523-2434.