National investment loss lawyers KlaymanToskes is investigating Arete Wealth Management and financial advisors who unsuitably recommended and sold fraudulent Zona Energy Inc. investments to their customers. While Arete Wealth Management did not approve Zona securities for offer and sale to its customers, the firm’s representatives including Joey Miller, Jeff Larson, and Randy Larson sold more than $8,000,000 worth of Zona shares to many of their Arete customers through a practice called “selling away,” which is a violation of securities laws, according to a complaint from the Securities and Exchange Commission (“SEC”).
According to the SEC’s complaint, approximately 120 investors were involved in the scheme orchestrated by Arete Wealth’s representatives who sold unapproved securities from Zona Energy Inc. These actions led to significant financial losses for many Arete Wealth customers, highlighting serious lapses in oversight and compliance within Arete Wealth Management. The SEC’s findings suggest that the firm and its representatives engaged in deceptive practices by conducting transactions outside of company supervision and violating securities laws.
If you suffered losses in Zona Energy Inc. at Arete Wealth Management, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation.
Arete Wealth Advisors, and its Chief Compliance Officer and General Counsel, UnBo (Bob) Chung, are alleged to have orchestrated a cover-up to minimize the company’s liability after it was discovered that representatives had sold investments in Zona Energy, Inc. without proper authorization. According to the Securities and Exchange Commission (SEC), Chung actively assisted Arete representatives in obtaining broad liability releases from investors who were misinformed about the nature of their investments in Zona Energy, Inc., and the associated risks.
These liability releases reportedly often misrepresented the advisors’ roles and falsely claimed that the investors understood that the Arete Representatives had not recommended investments in Zona and that the Arete Representatives were not acting as financial advisers when doing so. Furthermore, the SEC found that the Arete Representatives’ misconduct occurred while Arete Advisors failed to comply with important compliance requirements and Arete Wealth failed to comply with key recordkeeping requirements.
In a related development to the Arete Wealth Management investigation, the Securities and Exchange Commission (SEC) has also settled charges against Michael Sealy. Sealy was alleged to have acted as an unregistered broker-dealer, a serious violation of the Securities Exchange Act of 1934, Section 15(a)(1). As part of the settlement, Michael Sealy consented to a cease and desist order to prevent further violations of the securities laws, a civil money penalty amounting to $200,000, and a suspension from participating in any penny stock offerings for the next 12 months.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in Zona Energy, Inc. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased unsuitable Zona Energy, Inc. investments, or any other unsuitable investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.