HOUSTON, May 12, 2010 (GLOBE NEWSWIRE) -- The law firm of Shepherd Smith Edwards & Kantas LLP (http://texas.stockbroker-fraud.com/) is currently investigating claims against a firm accused of Texas securities fraud. A State District Court Judge has frozen the assets of Retirement Value LLC and appointed a receiver to take control of the New Braunfels company. The allegations relate to the sale of investments linked to death benefits from life insurance policies. The Texas State Securities Board has been conducting an undercover investigation into the company.
According to the securities board, between April 2009 and February 2010 the company allegedly collected $65 million from more than 800 investors. The securities board also contends that from the $65 million that Retirement Value received from investors, $9.3 million was paid in commissions to unregistered sales agents. It is also alleged that Retirement Value and its principals in the company retained $8.4 million. In March, the securities board issued an emergency cease-and-desist order against the firm.
When receivers are appointed, their general function is to seek to recover whatever assets can be found so that creditors are reimbursed and investors are compensated for their losses. Unfortunately, after expenses are paid only a fraction of the losses are usually recovered. Our firm can represent clients to look beyond the reach of a receiver to other companies and individuals who sold or assisted in the sale of the investments to a particular investor.
Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. Since 1990, the firm has represented thousands of investors nationwide to recover losses. Those cases have involved the representation of clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions.