Friend's name used by a pump and dump (without his knowledge)

[pweasehelp]

Hi All -

My friend has a dilemma:
- His name was used by an acquaintance in a pump and dump
- The company made filings to the SEC stating that he basically controls, owns and manages the company
- He had no knowledge of it until they asked him to sign some backdated documents

He immediately hired a local lawyer. They've sent demand letters asking the acquaintance and his company to fix the previous filings to no avail. His legal expenses are well into $xx,xxx and he's being bled dry.

Now he has 2 options:
1. Go directly to the SEC. However, what happens to his legal expenses so far?
2. File a case in the U.S. for fraudulent use of his name and the damage to his reputation (by being associated with a pump and dump)

His local lawyer has suggested #2, but he can't practice in the U.S. He recommended contacting the State Bar. The lawyer that the State Bar recommended basically asked for money upfront to even look into the case.

Is there anyone that would take a case like this on contingency? Where do I find them? It seems massively unfair that my friend gets defrauded and has to eat so much in legal expenses for no fault of his own.

Any help would be greatly appreciated.

 

[Just Blue]

Hi All -

My friend has a dilemma:
- His name was used by an acquaintance in a pump and dump
- The company made filings to the SEC stating that he basically controls, owns and manages the company
- He had no knowledge of it until they asked him to sign some backdated documents

He immediately hired a local lawyer. They've sent demand letters asking the acquaintance and his company to fix the previous filings to no avail. His legal expenses are well into $xx,xxx and he's being bled dry.

Now he has 2 options:
1. Go directly to the SEC. However, what happens to his legal expenses so far?
2. File a case in the U.S. for fraudulent use of his name and the damage to his reputation (by being associated with a pump and dump)

His local lawyer has suggested #2, but he can't practice in the U.S. He recommended contacting the State Bar. The lawyer that the State Bar recommended basically asked for money upfront to even look into the case.

Is there anyone that would take a case like this on contingency? Where do I find them? It seems massively unfair that my friend gets defrauded and has to eat so much in legal expenses for no fault of his own.

Any help would be greatly appreciated.

This site doesn't make Attorney recommendations and any attorney that trolls advice site for clients is one that you shouldn't do business with. Your friend can call the bar for more referrals and perhaps another attorney will look into his case pro bono or perhaps a reduced rate.

 

[quincy]

Where does your friend live? What is your involvement?

 

[Taxing Matters]

1. Go directly to the SEC. However, what happens to his legal expenses so far?

He's not going to get those reimbursed by the SEC nor likely to get them paid by the acquaintance either. And just how did he rack up tens of thousands of dollars with a non US lawyer when no litigation has even been started yet?

2. File a case in the U.S. for fraudulent use of his name and the damage to his reputation (by being associated with a pump and dump)

He can try that and see about getting compensated for the damages he suffered.

Is there anyone that would take a case like this on contingency? Where do I find them?

Your friend needs to try contacting several lawyers that practice securities law to see if any would take the case on contingency or if they can refer him to someone who would. Those lawyers need to be licensed in his state.

 

[quincy]

Your friend probably should start by suing the acquaintance, since this acquaintance is the source of his problem.

 

[pweasehelp]

Where does your friend live? What is your involvement?

My friend isn't very savvy, hence why he was probably a prime target for this fraud.

He sent me the backdated documents that they asked him to sign, asking whether he should do it. I told him absolutely not and to get a lawyer immediately.

Your friend probably should start by suing the acquaintance, since this acquaintance is the source of his problem.

What sort of lawyer would we need for this case?

When I call the State Bar, they're understandably lost about who to suggest. The lawyer that they did recommend is asking for payment upfront to even look into the case, which is after my friend has already been bled dry in existing legal fees.

It's super unfair that he was the victim of fraud, and is having to dish out this much for no fault of his own.

 

[Just Blue]

My friend isn't very savvy, hence why he was probably a prime target for this fraud.

He sent me the backdated documents that they asked him to sign, asking whether he should do it. I told him absolutely not and to get a lawyer immediately.


What sort of lawyer would we need for this case?

When I call the State Bar, they're understandably lost about who to suggest. The lawyer that they did recommend is asking for payment upfront to even look into the case, which is after my friend has already been bled dry in existing legal fees.

It's super unfair that he was the victim of fraud, and is having to dish out this much for no fault of his own.

Quincy asked "Where does your friend live?" ...Please answer his question.

 

[pweasehelp]

Quincy asked "Where does your friend live?" ...Please answer his question.

He's in Central America. I'm not sure if I should be more specific?

Given the details of the initial post, it would be awfully easy for the culprit to piece together it's him.

Let me know if you guys feel otherwise.

 

[Taxing Matters]

He's in Central America. I'm not sure if I should be more specific?

And where is this acquaintance of his located?

 

[pweasehelp]

And where is this acquaintance of his located?

United States

 

[Just Blue]

United States

What state?

 

[pweasehelp]

What state?

Nevada

 

[quincy]

Nevada

Your friend should be able to find an attorney who practices securities law in Nevada who is willing to review the issue. An initial consultation should be free. Here is a link:

https://nvbar.org/for-the-public/find-a-lawyer/

He should contact more than one lawyer. Your friend should ask about the attorneys rates.

To whom is he paying all the legal expenses he has had so far?

 

[Litigator22]

He's in Central America. I'm not sure if I should be more specific?

Given the details of the initial post, it would be awfully easy for the culprit to piece together it's him.

Let me know if you guys feel otherwise.

Let's see now . . . we are asked to believe that in order to inflate the value of his corporate holdings a Nevada investor falsely represented to the SEC that the subject corporation is under the exclusive management and control of an admitted "unsavvy" associate of the Nevada investor whose whereabouts is some where in Central America.

Further, that because of it this guy in Central America is so offended and supposedly financially impaired that to date he has incurred legal expenses aimed at correcting the falsehood to the extent of five (5) figures - whether pesos or dollars we're are left to guess.

Also we are left to surmise as to when, wherein and what for the "dump" is to occur in this incredible "pump and dump" scheme.

But before addressing your questions Mr. pweasehelp let me ask you one:

Do you think everyone here just fell off of a friggin' banana cart?!

 

[pweasehelp]

Let's see now . . . we are asked to believe that in order to inflate the value of his corporate holdings a Nevada investor falsely represented to the SEC that the subject corporation is under the exclusive management and control of an admitted "unsavvy" associate of the Nevada investor whose whereabouts is some where in Central America.

Further, that because of it this guy in Central America is so offended and supposedly financially impaired that to date he has incurred legal expenses aimed at correcting the falsehood to the extent of five (5) figures - whether pesos or dollars we're are left to guess.

Also we are left to surmise as to when, wherein and what for the "dump" is to occur in this incredible "pump and dump" scheme.

But before addressing your questions Mr. pweasehelp let me ask you one:

Do you think everyone here just fell off of a friggin' banana cart?!

I appreciate the response, but, what would I have to gain by lying?

Everything I am saying is factual. Happy to provide mods with any proof to support the same. The absurdity and blatant disregard of securities law was shocking to the State Bar representative I spoke with as well. She figured it might fall under tort law but grappled with it as well.

And yes, the company is still trading publicly.