Securities Lawyer Blog | Victim of Fraud?

TAG | misleading investment information by brokers

Dec/11

19

Jeffrey Rachlin Fined and Sanctioned by FINRA

Comments off · Posted by Securities Lawyer in FINRA

Jeffrey Rachlin (CRD #823547, Registered Principal, Pleasantville, New York)
 
has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $10,000, suspended from association with any FINRA member in any capacity for 30 business days, and suspended from association with any FINRA member in any principal capacity for 18 months. The fine must be paid either immediately upon Rachlin’s reassociation with a FINRA member firm following his all-capacity suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.
 
FIRNA reports that without admitting or denying the findings, Rachlin consented to the described sanctions and to the entry of findings that his member firm, acting through Rachlin and another firm principal, negligently omitted material facts in connection with its sales of promissory notes to investors.
 
These findings stated that the notes were issued by an entity which was controlled by a real estate developer. The firm, acting through Rachlin and another firm principal, negligently failed to disclose to investors that the entity had been experiencing cash flow problems and that the entity and other companies affiliated with the real estate developer had failed to make required interest payments to investors. The findings also stated that the firm, acting through Rachlin and another firm principal, negligently failed to disclose that it was unlikely that the entity’s affiliated company would be able to make its scheduled principal payments totaling $10 million that were due to its note holders.
 
 These findings also included that Rachlin helped prepare a document called “Investor Letter” for a company; the letter was later distributed by his firm. The Investor Letter constituted a research report, but it failed to disclose a firm representative’s ownership interest in the company and his receipt of compensation from the company.
 
Also, FINRA found that Rachlin helped prepare presentations regarding the company, which the firm’s registered representatives used to solicit potential investors at seminars. The presentations contained statements and projections that were without basis and were false, exaggerated, unwarranted and/or misleading, and failed to provide a balanced presentation by omitting material information regarding the significant risks associated with an investment in the company.
 
This suspension in any capacity is in effect from November 7, 2011, through December 19, 2011. The suspension in any principal capacity is in effect from November 7, 2011, through May 6, 2013. (FINRA Case #2010021058403)
 
This article is from FINRA’s website under ‘Disciplinary and Other FINRA Actions December 2011.’
 
Securities Attorney, Lars Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have experienced losses through Jeffrey Rachlin, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

 

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Aug/11

8

Did you Purchase Stock in Dendren Corporation (DNDN)?

Comments off · Posted by Securities Lawyer in FINRA

Securities attorney, Lars Soreide, of Soreide Law Group, PLLC, is currently investigating the Dendreon Corp. (NASDAQ: DNDN) for possible violations of federal securities laws after the company’s withdrawal of its sales forecasts for its prostate cancer therapy Provenge. Dendreon projected that it would earn between $350 – $400 million on sales of Provenge.

The Dendreon Corporation is a Seattle-based biotechnology company focused on the discovery, development and commercialization of novel therapeutics that may improve cancer treatment options for patients.

With the announcement of Dendreon withdrawing it’s earnings guidance, the stock fell from a closing price on August 3, 2011 of $33.65 to an opening price on August 4, 2011 of $12.73. The shares of DNDN fell more than 60 percent after the company withdrew its 2011 revenue estimates allegedly costing the company $3.2 billion in market value.  Today, it is at $11.05.

If you or a family member  invested in DNDN stock and suffered losses, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

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