National investment loss lawyers KlaymanToskes is investigating Shelly Wolfsdorf (CRD# 2644785) following the filing of a customer complaint alleging $850,000 in damages due to her firm, Dalmore Group’s, alleged failure to prevent one or more criminals from stealing the customer’s EB-5 qualifying investment.
According to FINRA BrokerCheck, Shelly Gu Wolfsdorf is registered as a broker with Finalis Securities in New York, NY. Wolfsdorf was previously registered with Dalmore Group in Woodmere, NY, until her termination in 2023 for failing to adhere to the firm’s training on cybersecurity protection.
Investors that suffered losses with Francis P. Carson may be entitled to a financial recovery. Contact attorney Lawrence L. Klayman for a free consultation at (888) 997-9956 or lawrence@klaymantoskes.com to discuss your recovery options. We do not collect attorney’s fees unless we obtain a financial recovery for you.
According to FINRA BrokerCheck, Shelly Gu Wolfsdorf has one pending customer complaint disclosed which alleges $850,000 in damages. The complaint alleges that Dalmore Group, through its registered representative Wolfsdorf, “allowed criminals to steal the clients EB-5 qualifying investment”.
The customer allegedly paid $850,000 as directed by an email purportedly sent to the customer by Wolfsdorf. The customer alleges that Dalmore group, through Wolfsdorf, failed to take responsible steps to prevent, mitigate or remediate the theft-related loss incurred by the customer
According to the Securities and Exchange Commission (“SEC”), the EB-5 Immigrant Investor Program was created by congress in 1990 to “stimulate the U.S. economy through capital investment by foreign nationals seeking a legal path to U.S. residency.” The program is known as “EB-5” due to the employment-based “fifth preference visa” that its participants receive.
The EB-5 Investor Program is administered by the U.S. Citizenship and Immigration Services (“USCIS”). According to the program’s current guidelines, the standard minimum investment amount has increased to $1.8 million (from $1 million) to account for inflation. In addition, the minimum investment in a TEA (Target Employment Area), “has increased to $900,000 (from $500,000) to account for inflation.” USCIS estimates that future adjustments tied to inflation (per the Consumer Price Index for All Urban Consumers, or CPI-U) will occur every five years.
Private placements or “Reg D” (non-public) securities offerings can be high-risk investments for investors, as they are not bound to the same Securities Exchange Commision (“SEC”) disclosure requirements as public investment offerings. Further, in order to qualify for Registration D exemption, these EB-5 securities cannot be resold, making them highly illiquid.
Private placement EB-5 investments are typically structured as partnerships or limited liability companies (LLCs) and are often managed by regional centers or individual developers.
Fraudsters often target foreign investors, as they are seeking opportunities for immigration and are less familiar with the U.S. regulatory environment. Instances of fraud within the EB-5 program may arise from the misconduct and/or securities violations by investors’ financial advisors/account managers, regional centers, or other parties involved in the investment process.
Some examples of EB-5-related misconduct include mismanagement of funds, improper disclosure of project risks, or breaching fiduciary duties to investors. In cases where EB-5 investments have devastating financial consequences, investors’ financial well-being and immigration plans may be jeopardized.
To mitigate these risks, financial advisors must exercise due diligence by conducting thorough research on the regional center and project developers, while reviewing project documentation, financial statements, and track records.
KlaymanToskes can help you determine if your EB-5 investment loss is due to fraud, investment advisor misconduct, or unsuitable investment advice. Depending on your circumstances, you may be entitled to recover your losses through FINRA arbitration.
If you suffered losses in EB-5 qualifying investments due to securities violations by your financial advisor, contact securities attorney Lawrence L. Klayman to discuss your recovery options at (888) 997-9956 or lawrence@klaymantoskes.com. All consultations are free and confidential.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com