Arnold & Itkin LLP attorneys Kurt Arnold and Jeff Seely filed an action in an insurance dispute over the wrongful denial of insurance coverage concerning a local apartment fire. That insurer and the lender failed to send proper notice to the plaintiff, and, consequently, wrongfully terminated the policy. The case was filed in Texas state court in Harris County.
Investors who lost money in the Ponzi scheme investment fraud perpetuated by Nacogdoches, Texas businessman George Hudgins can soon begin to look forward to payments.; Hudgins pleaded guilty in September on charges of wire fraud, embezzlement and money laundering. He is yet to be sentenced.
The scheme launched in 2004, had Hudgins soliciting funds from investors for the apparent purpose of investing in stock index futures and commodities. Instead, under the scheme, potential investors were enticed with the promise of huge returns on their investment. Hudgins was in reality operating what is known as a Ponzi scheme, where investments made by investors are used to pay "profits" to other investors. By April 2008, Hudgins' scheme was incurring large losses, and in May, the federal government sued him for violations of commodities trading regulations.
Now, a court in the Eastern District of Texas has offered some reprieve to investors whose claims have not been contested. They can expect to begin receiving payments by the end of this year. However, there have been several investors whose claims have been denied because of their inability to produce evidence of their losses. Most of those who were denied their claims apparently don’t have bank records to prove their investment, having deposited their funds in the scheme, in cash. These investors are critical of the way Kelly Crawford, the receiver in the case, has denied their claims. They insist that even in the case of cash investments, a written agreement between them and Hudgins should be sufficient grounds to prove losses.
Not all claims have been denied because of lack of evidence of losses. Others have been denied because they didn’t participate in the investment scheme that Hudgins ran, although he did owe them money. Crawford's office has released a set of recommendations to investors whose claims have been denied, asking for additional information that could result in a reversal of the decision. Even those whose papers are in perfect order may not receive every cent they lost in the fraud scheme. A lot of the money invested was lost in Hudgins' trading activities, adding up to a total loss of close to $80 million dollars.
A Ponzi scheme is named for Charles Ponzi who in the early part of the 20th century defrauded thousands of people, using their investments to pay returns to other investors. Since then, this scheme has surfaced time and again, in complicated cases involving large amounts of money. Ponzi schemes tend to fall apart quickly because of the fact that promoters are required to solicit more and more investments in order to pay returns to older investors. The more number of members a Ponzi investment fraud scheme has, the quicker it comes under the scanner of regulators.
When financial losses have resulted because of falsified investment advice, investors can claim compensation from these promoters. Proving losses in a court requires a thorough understanding of complex business litigation law, and an ability to use these laws to prove your losses, and build your case. An expert business litigation attorney who has years of experience handling investment fraud cases, can bring the kind of experience your case needs. Contact a business litigation lawyer at Arnold & Itkin LLP for an evaluation of your case.
Today the Securities and Exchange Commission (SEC) filed a lawsuit accusing Internet entrepreneur turned Dallas Mavericks owner of insider trading. At issue is a 4-year-old stock sale that Mr. Cuban has written about on his blog. The U.S. Securities and Exchange Commission alleges that Mr. Cuban avoided a $750,000 loss by selling his 6 percent stake in Momma.com, an Internet search engine company, after company executives told him confidentially about a stock offering restricted to major investors.
"It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market," said Scott W. Friestad, the SEC's deputy director of enforcement.
Cuban has flatly denied the allegations and a statement from his lawyer posted in Cuban's blog said that he would fight the civil complaint.
When company investors or executives with access to privileged information engage in insider trading, it puts other investors and shareholders at an unfair disadvantage. If you have suffered a financial loss as a result of insider trading or other corporate stock fraud, you may be entitled to compensation. A securities attorney with the Texas business litigation law firm Arnold & Itkin LLP in Houston, Texas can help you understand your rights and options you may have to claim compensation for your loss.
One month after Hurricane Ike cut a destructive swath through southeast Texas leaving more than an estimated $11 billion in insured damages, the impact of the storm is still apparent. Here are some statistics as reported by the Houston Chronicle, from sources including FEMA, US Army Corps of Engineers, American Red Cross, and local government officials:
If you have been impacted by Hurricane Ike and you are experiencing difficulties getting a hurricane damage insurance claim settled fairly by your insurance company, you may be entitled to compensation. Don't be bullied by unfair insurance settlement practices. Get help from a qualified hurricane insurance claims lawyer today.
The Houston Chronicle reported today that in a filing made by lawyers for victims of the March 2005 explosion at BP's Texas City refinery, victims challenged a proposed $50 million criminal fine saying that medical bills surpassed $100 million for just 29 of the people hurt in the explosion. Documents filed in response to a request last month by U.S. District Judge Lee Rosenthal said, "The punishment fails to fit the crime".
Last month Rosenthal asked lawyers for both sides to compile a summary of last wages as well as past and future medical bills for the 15 people killed in the accident and others who were injured. She requested the information to help her determine whether the $50 million fine is "unreasonably low".
The victims' filing said lost wages and past and future medical bills for 29 people reached $102.1 million-- more than twice the proposed fine. It noted medical losses ranging from $249,512 for a person who was 65 to more than $30 million for two people who were 32 and 44.
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