Fort Lauderdale, Florida, February 4, 2012 (Globe Newswire) –Royal Alliance Associates, an AIG Advisor Group division owned by American International Group (NYSE: AIG), sued victims of a Ponzi scheme to block pending FINRA arbitration claims, where the victims have alleged that Royal Alliance Associates failed to supervise the sales agents who sold the fraudulent investments, says Sonn & Erez PLC, cocounsel for the victims.
The victims’ attorneys, Jeffrey Sonn, Esq. and the Law Firm of Nicholas J. Guiliano have moved to consolidate the nine federal court suits by Royal Alliance against the victims to just one federal judge, a move opposed by Royal Alliance.
Royal Alliance Wrongly Files Lawsuits
“Royal Alliance wrongly filed nine identical lawsuits in federal courts around the country against victims of the Daniel Spitzer Ponzi scheme, alleging that the victims were not “customers” of Royal Alliance, and therefor not entitled to compensation through arbitration.” said Jeffrey Sonn, Esq.
“We believe the Royal Alliance suing victims to block their right to arbitration is wrong, and these nine suits should be consolidated in one court, to obtain one ruling, that Royal Alliance must arbitrate these cases, where are seeking millions of dollars for the victims because we believe Royal Alliance is liable for the losses.” added Sonn.
SEC Sued Daniel Spitzer for Ponzi Scheme
The SEC sued Daniel Spitzer and alleged he operated investment funds as part of a larger Ponzi scheme and monies were raised from victims by “various sales agents.” Victims represented by attorneys Sonn and Guiliano have alleged in arbitration that Royal Alliance should be held liable for these losses, alleging former Royal Alliance Associates representative Anthony Sarris, and his father Manny Sarris, were involved in the sale or should have supervised the sale, of the funds.
The funds involved in the Ponzi scheme include Draseena Funds; SSecurity Fund, Nerium Curreny Fund; Arrow Fund; Conservium Fund; Senior Stength Q Fund; Three Oaks Advanced Fund; Three Oaks Curreny Fund; Three Oaks Fund; Three Oaks Senior Strength Fund; and USFirst Funds. The fraudulent scheme raised $105,875,029 from approximately 400 investors.
The SEC alleged victims were told that their money would be invested in primarily foreign currency trading, and that Spitzer’s investment funds had not lost money and had profitable historical returns, including one year with an annual return of 184.15%. In reality, Spitzer used $71,886,926 of the investor proceeds to make Ponzi payments to other investors to keep his scheme afloat, according to the SEC suit.
“There is still time for victims to bring cases to recover their losses,” added Sonn.
Sonn & Erez, PLC represents investors who have suffered losses in investments caused by fraud, negligence or other misconduct. Investors seeking more information may contact Jeffrey Sonn or Jeffrey Erez at Sonn and Erez PLC.
Guiliano Law Group
Our Practice is limited to the representation of investors in claims against stockbrokers and investment professionals for fraud, the sale of unsuitable investments, breach of fiduciary duty, failure to supervise. National Practice. Contingent Fee. Free Consultation. If you have suffered losses a the result of the recommendation of inverse and leveraged ETFs by your stockbroker or investment professional and were unaware of the risk associated with these securities, contact us for a free confidential evaluation at (877) SEC-ATTY.