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Securities fraud arrest could lead to more than criminal charges

There is likely an assumption on the part of most investors that the individual they are investing with has a certain level of education. Investors also probably also assume that the age of the person they are working with is commensurate with having attained that level of education. As investors in another state are finding this is not always the case. Multiple investors are now learning that the business they invested in, Stark Innovations, LLC, was headed by a man who was just 19 years old. That man was recently arrested by authorities in that state. 

The teen was charged with multiple financial crimes including:

  • Felony securities fraud.
  • Felony obtaining property by false pretense for items valued over $100,000.
  • Misdemeanor solicitation to obtain property by false pretense.

According to investigators, the teen told investors that funds were used to cover expenses connected to international imports, including freight costs, for companies. On one social media profile the man promised investors a return of 6.24 percent each month, with no accompanying risk. He solicited potential investors via multiple social media sites, as well as cold calls. Around 20 investors were involved with the man.

Allegedly, the fraudulent investments totaled more than $130,000.

In addition to the criminal charges the teen could face legal action from the investors as well. Those individual might seek to recoup their lost investments. This is usually not an easy process. Accordingly, most people who find themselves in this situation find in beneficial to work with a securities lawyer.

Source: WSPA, “NC teen scams $130,000 from investors using Facebook, other methods, authorities say,” Rod Overton, Nov. 5, 2014

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