Investment Fraud Watch: SEC Wins Jury Verdict In Securities Fraud Case Against South Florida Financial Advisor
On December 15th, 2021, the Securities and Exchange Commission (SEC) announced that a jury in South Florida found financial advisor Michael C. Furman liable for securities fraud and for the unlawful sale of unregistered securities. The federal agency filed charges against Mr. Furman for his role in an investment fraud scheme targeted at senior citizens and other vulnerable investors. In this blog post, our Miami investment fraud lawyers provide an overview of the jury verdict reached in the SEC’s case against the South Florida investment professional.
The Allegations: Unregistered Securities, Elder Financial Fraud
In July of 2020, the SEC filed securities fraud charges against several parties in the United States District Court for the Southern District of Florida. Financial advisor Michael C. Furman is one of eight individuals named in the complaint. Several companies are also named as defendants. The central corporate defendant was Complete Business Solutions Group Inc—an investment entity that did business under the name “Par Funding.”
In total, the SEC contends that Par Funding raised more than $500 million from investors on fraudulent grounds. The alleged investment fraud scheme was operated between August of 2012 and December of 2017. During that time, the owners and operators of Par Funding raised funds from investors through the sale of promissory notes. These unregistered securities were sold to investors on false and misleading grounds.
Notably, financial advisor Michael C. Furman is alleged to have raised $10 million for Par Funding through investment entities that he owned and controlled. The SEC brought charges against Mr. Furman on the grounds that he committed securities fraud and improperly sold unregistered securities to investors in violation of federal law. Within the complaint, the SEC explained that Mr. Furman primarily sought funds from elderly investors and retired investors. Federal regulators put an emphasis on protecting vulnerable investors, including senior citizens.
The Jury Verdict: Civil Liability for Investor Losses
The SEC has taken a number of different steps to get justice for investors in the Complete Business Solutions Group Inc. (Par Funding) securities fraud case. Though, the securities fraud charges against Michael C. Furman were the only ones that actually went to trial. After an eight-day trial, a South Florida jury has found Mr. Furman legally liable for securities fraud and the illegal sale of unregistered securities. The SEC notes that approximately 1,200 investors lost out on more than $500 million as part of this investment fraud scheme.
Call Our Miami Financial Advisor Fraud Lawyers for Immediate Help
At Carlson & Associates, P.A., our Florida financial advisor fraud attorneys have the professional experience that you can rely on. We know how to hold negligent brokers, financial advisors, and brokerage firms accountable. Give us a call now or send us a direct message for a completely confidential case evaluation. We handle financial advisor fraud claims throughout Southeastern Florida, including in Miami, Miami Beach, Fort Lauderdale, West Palm Beach, Jupiter, and beyond.
Resource:
sec.gov/news/statement/grewal-furman-verdict-20211216