Hundreds of billions of dollars have been raised in recent years through the sale of securities in private offerings, which are also known as private placements.  Without a doubt, private offerings of restricted stock can provide young, thriving businesses with the essential capital they need to finance the construction of new plants and facilitate the purchase of new equipment.  Viewed in that light, it is readily apparent that, in a larger sense, private offerings can operate so as to help stimulate economic activity, and thereby advance the interests of the nation as a whole.

At the same time, it must be understood that the welfare of trusting, innocent investors cannot be sacrificed.  Although youthful executives of high flying tech companies who receive lavish stock option packages may be able to easily weather a storm brought about by horrendous losses, those dynamics will rarely hold true for most investors who lose their “nest egg.”  Why?  Generally speaking, it takes a lifetime for most people to build a nest egg.  As such, investors will usually lack the ability to truly “make it back.”

Recognizing that the effects of securities fraud can be monumental in nature, securities industry regulators — such as the SEC and FINRA — have repeatedly stressed the need for supervisory and compliance personnel, together with brokerage firms as a whole, to be vigilant in their supervision of registered representatives, who are commonly referred to as “stockbrokers” or “financial advisors.”  Time and time again, regulatory authorities have emphasized the consequences of abusive practices.  Regrettably, the “bad apples” of the securities industry generally maintain little regard for the rules and regulations governing their conduct, let alone regulatory admonitions.  Seemingly devoid of a conscience, the worst of this group place an overriding emphasis on the commissions accompanying the securities transactions they effect, with little thought being devoted to questions of whether a recommendation to purchase a given security is actually tailored to the unique attributes and characteristics of the customer in question.

At the same time, it cannot be said that the bad elements of the financial services industry are oblivious to the requirement that recommendations be customized so as to fit the objectives, risk tolerance, investment experience, income, net worth, and the age of each investor.  To that end, they routinely strive to create the appearance that they are acting in conformity with that obligation — which forms a central tenet of the securities industry.  They frequently seek to accomplish this objective by falsifying information on these fronts — and then instruct the investor to quickly sign off on the hastily written classifications they have sketched.  With respect to private offerings, which customarily yield highly elevated commission payments, they often supplement these initiatives by going to great lengths to portray the underlying stock in a much safer, more conservative light than the circumstances could possibly justify.  In sum, it’s safe to say that these troublesome, “rotten egg” brokers structure the entirety of their conduct so as to avoid detection while simultaneously striving for investor acquiescence — all in an effort to “line their pockets.”

Knowing that investors who have been defrauded may be inclined to contact a securities lawyer, and then initiate legal action designed to recover losses that have been sustained, these slippery sales representatives strive to ensure that their fictitious, unduly optimistic — and blatantly misleading — representations are not reduced to writing.  Why do they engage in this tactic?  What is their thought process?  In many instances, they fully understand that the text of the underlying private placement memorandum (or “PPM” for short) has been filled with boilerplate, the essence of which suggests that the issuer (the company which will receive the bulk of the financial proceeds) has virtually no chance of succeeding.  Framing the issuer in dismal terms, private offering documents regularly state that the products of competitors are superior; competitors maintain more capable management teams; competitors are better financed, etc.  If the case proceeds to trial, this language may be seized upon to support defense arguments, wherein it is claimed that the investor had been fully apprised of the enormous risks that would accompany the purchase of the stock in question.  Indeed, it is even possible that such a theory of defense would go so far as to claim that the broker forcefully told the investor that it would be foolish to purchase the stock, but the investor was adamant about going ahead with the transaction.  (Note: To overcome such an argument, it is often prudent to join a group of Plaintiffs together in a single case.  The aggregate impact of the testimony provided by each investor will make it clear that such a defense argument is entitled to no weight.)

Fortunately, Texas investors who have been tricked and deceived can contact a leading securities law firm so as to discuss the potential merits of a lawsuit.  Tefteller Law, PLLC represents investors residing throughout the State of Texas.  Chris Bebel, a highly regarded securities law attorney, heads the investment fraud section of the law firm.  He is an experienced investment fraud lawyer who has achieved a high level of success throughout his distinguished career.  Indeed, other lawyers have frequently called upon Chris Bebel for advice and insights.  As a former SEC attorney and a former federal prosecutor, Chris Bebel not only understands and appreciates the rules governing the securities industry, he knows how the securities industry operates on a day to day basis.  Unlike many other lawyers, Chris Bebel does not view stock broker fraud as a novel concept.  With so many cases “under his belt,” he is regarded as a seasoned investment fraud attorney who can capitalize on the knowledge, skill, and experience he has amassed — and then expose the weaknesses of his adversary’s case.

Chris Bebel, a published scholar who has made numerous securities law presentations throughout the country, works closely with Bradley Ellison.  Mr. Ellison is a cerebral, conscientious paralegal who regularly goes above and beyond the call of duty.  As a former master sergeant, U. S. Air Force, Mr. Ellison strives to promote the interests of investors who have been defrauded.  Being the recipient of three graduate degrees, Mr. Ellison is, not surprisingly, a superb writer.

Of course, neither Mr. Bebel nor Mr. Ellison can promise success.  In short, it would be highly irresponsible for them to offer such a guaranty.  Similarly, neither Mr. Bebel nor Mr. Ellison can promise anyone, at the outset, that a given case will be accepted; no decisions will be made in that area until personal conversations have taken place (usually by telephone), wherein the specific facts and circumstances of the situation are discussed.  No fees are assessed in connection with initial consultations.  All initial consultations are free of charge.

If you are the victim of private offering fraud, stand up for your rights.  Contact a securities fraud attorney who is familiar with the “ins and outs” of securities fraud, and private placement fraud in particular.  Chris Bebel has been repeatedly retained as an expert by a broad array of attorneys situated from coast-to-coast.  Those experiences, combined with the invaluable knowledge and understanding he acquired while serving as a federal prosecutor, make him a leading investment fraud lawyer.  By way of understatement, deceitful financial advisers are not anxious to face him on cross-examination; neither are the expert witnesses they retain.

Left unchecked, securities fraud can serve as a scourge upon the land, wrecking havoc upon the lives of investors and their families.  If you are a victim of financial adviser fraud, find out more about the rights and remedies you maintain under state and federal law; call Chris Bebel, a securities litigation attorney so many lawyers have called upon.  Inexperienced, untested securities lawyers may not be up to the task.  Contact Chris Bebel, a highly regarded securities lawyer who has established an impressive track record of success.