Shopoff Securities Lawsuit Investigation

Shopoff Ponzi scheme allegations; Investors may have been placed in unsuitable investments

Our firm is investigating Shopoff Securities, Inc. on behalf of Shopoff investors. In January of 2019 the Financial Industry Regulatory Authority (FINRA) began investigating Shopoff Securities on allegations that the company may be a Ponzi scheme. FINRA also claimed that Shopoff misrepresented the financials of its principals for certain investments.

If you invested in a Shopoff private placement, you may be eligible to recover your losses. Speak to an experienced securities attorney today to learn more about your options.

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Shopoff Private Placements Unsuitable For Investors

Our firm is investigating Shopoff Securities on behalf of investors who were sold Shopoff private placements in real estate ventures. Many sources have claimed that Shopoff Land deals are extremely risky, and may be unsuitable to certain investors.

Shopoff investment offerings include:

  • Shopoff Land Fund I LP
  • Shopoff Land Fund II, L.P.
  • Shopoff Land Fund III, L.P.
  • Shopoff Land Fund IV, L.P.
  • Shopoff Land Fund V, L.P.
  • Shopoff California Commercial Fund, L.P.
  • Shopoff Commercial Growth and Income Fund III, L.P.
  • SCGIF II – Skypointe, LLC
  • SCF – 4440 VKA, LLC
  • SCGIF II – Franklin, LLC
  • SCF – 2100 Q Street, LLC
  • SCGIF II – Des Plaines, LLC
  • Vertimass, LLC

If you were placed in a Shopoff investment and believe that you were not given all of the information, or were placed in an unsuitable investment for your age, investment goals, or risk tolerance, you may be able to recover your losses. Get a free case evaluation today.

Shopoff Securities FINRA Investigation: Ponzi Scheme Allegations

At the start of 2019, FINRA filed a complaint against Shopoff Securities, its President and Chief Executive Officer William A. Shopoff, and its Senior Vice President for Investor Relations Stephen R. Shopoff. The complaint alleges that Shopoff Securities, through these two officers, fraudulently sold nearly $12.57 million worth of promissory notes to 29 investors. These notes, according to FINRA, were owned by William Shopoff and used to fund his private real estate firm.

The case also claims that Shopoff Securities failed to disclose that William Shopoff would be transferred $165,000 of the investment proceeds to pay for his and his wife’s personal expenses. Further, FINRA states that William Shopoff overstated his liquidity and net worth in connection to the sale of Shopoff Land III and Shopoff Land Fund IV. This misrepresentation was allegedly accomplished by the temporary transfer of $1.5 million to William Shopoff’s personal account.

FINRA also alleges that the money raised by Shopoff Securities was used to pay the returns of prior investors, which may be indicative of a Ponzi scheme.

Broker dealers are required to perform due diligence before recommending private placements to investors. If you were placed in a Shopoff fund, without any prior indication of the company’s wrongdoing, you may have recourse options. Contact us today to learn more about recovering your investment losses.

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Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product.

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