Our investment fraud attorneys are currently investigating allegations that Richard Gomez defrauded investors while registered with Legend Securities, Inc.
The Financial Industry Regulatory Authority (FINRA) has accused Richard Gomez (CRD# 4727721) of defrauding seven investors out of at least $499,000 between June 2011 and November 2011. During this period, Gomez was employed as a broker with Legend Securities, Inc. in New York City.
In a complaint filed by the FINRA Department of Enforcement on April 8, 2015, Gomez is accused of using two separate private securities schemes to defraud investors. Gomez allegedly sold membership interests in entities affiliated with Praetorian Global Fund, Ltd., which claimed to offer the benefit of IPO shares of major companies like Facebook and Groupon, and US Coal Corporation, Inc.
Gomez allegedly told his clients that US Coal was planning an IPO, when in fact US Coal had no concrete plans at the time for doing so. US Coal went bankrupt in 2014, never having issued an IPO.
In its Complaint, FINRA alleged that Gomez should have known more about the investments he was recommending to his customers, such as the fact that Praetorian’s fund manager had a lengthy rap sheet that included multiple theft convictions. Several other people affiliated with Praetorian had also been named in various fraud lawsuits.
Just three months before Gomez allegedly began soliciting Praetorian to his clients, the Securities and Exchange Commission had filed a lawsuit against a Praetorian associate. According to FINRA’s complaint, Gomez either “missed or ignored numerous red flags.”
If you invested in Praetorian Global Fund or US Coal Corporation at the recommendation of Richard Gomez, we invite you to contact a stockbroker fraud lawyer at Meyer Wilson for a free review of your case.