INVESTOR DEFENSE LAW BLOG

Posts in Category: “Credit Nation Capital”

What does a Receivership Do? An Investor’s Guide to How Receivers Recover Investment Losses While (Hopefully) Avoiding Bankruptcy

Posted on Oct 4th, 2016

If you’re reading this article, there is a good chance you invested in or through an entity that is now in receivership, and you probably have a lot of questions! The purpose of this article is to give you a general overview of how receiverships work so you know what to expect. Every receivership is different, but every receivership goes through four overlapping stages: 1) stabilization; 2) investigation; 3) litigation; and 4) distribution.

These four stages all support the overarching goal of every receivership—the orderly winding down of a business in a manner that maximizes value for investors.

We will come back to these four stages in a minute, but first it is important to understand the background context that gives rise to a receivership.


BAD NEWS: Federal Judge Rules Credit Nation Capital and James “Jim” Torchia Probably Defrauded Investors in SEC Lawsuit

Posted on Apr 29th, 2016

On April 26, U.S. District Court Judge Duffy entered an order in the SEC’s lawsuit against Credit Nation Capital and James Torchia that contained devastating news for investors. Credit Nation Capital is being shut down, and investors will probably lose most of their money.

Last year, the U.S. Securities & Exchange Commission filed a lawsuit against James Torchia and Credit Nation Capital, alleging that Credit Nation Capital looked like a Ponzi scheme and that its investment offerings were fraudulent. The SEC asked Judge Duffy to appoint a receiver over Credit Nation Capital. A receiver is a neutral third party whose job is to take over a failing business, liquidate its assets, and distribute the proceeds to creditors and investors. (For more background on the SEC’s case, click herehere, and here.


Update on SEC Lawsuit against James Torchia and Credit Nation Capital: January 7 Hearing on Motion for Preliminary Injunction

Posted on Jan 11th, 2016

Let’s cut to the chase: The Court has not ruled on the SEC’s motion for a preliminary injunction and will not do so until February.

The SEC has filed a civil lawsuit in the US District Court for the Northern District of Georgia accusing Credit Nation Capital, affiliates of Credit Nation Capital, and its CEO, James Torchia, of essentially operating a Ponzi scheme.

As many investors know, the Court heard arguments from the SEC and Defendants on whether the SEC’s motion should be granted on January 7. In fact, the evidentiary hearing even spilled over into January 8.


Investor F.A.Q.s About S.E.C. Lawsuit Against Jim Torchia and Credit Nation Alleging Ponzi Scheme For Sale Of Viaticals And Promissory Notes

Posted on Dec 11th, 2015

Many investors have contacted us regarding a lawsuit filed by the U.S. Securities Commission against James “Jim” Torchia, Credit Nation, and affiliated entities. We wrote an article about this alleged Ponzi scheme on our website, which you can read by clicking here.

Many investors have been asking us similar questions. The purpose of this blog post is to quickly and efficiently give investors our view of what is happening.


Massive Ponzi Scheme And Life Settlement Scam By James Torchia of Credit Nation Raises Investment Fraud To A Whole New Level In Canton, Georgia

Posted on Dec 2nd, 2015

According to a complaint recently filed by the Securities & Exchange Commission (SEC) in the U.S. District Court for the Northern District of Georgia, tens of millions of dollars across the South have been lost to a sophisticated investment fraud perpetrated by James A. Torchia of Credit Nation.

Mr. Torchia of Canton, Georgia and his family own or used to own auto dealerships and some other businesses, but Mr. Torchia’s alleged investment fraud involved two separate business, subprime auto lending and life settlements. The SEC does not mince words, bluntly stating that Mr. Torchia “has stolen investor money.”


Most Popular Posts


What does a Receivership Do? An Investor’s Guide to How Receivers Recover Investment Losses While (Hopefully) Avoiding Bankruptcy

Posted on Oct 4th, 2016

If you’re reading this article, there is a good chance you invested in or through an entity that is now in receivership, and you probably have a lot of questions! The purpose of this article is to give you a general overview of how receiverships work so you know what to expect. Every receivership is different, but every receivership goes through four overlapping stages: 1) stabilization; 2) investigation; 3) litigation; and 4) distribution.

These four stages all support the overarching goal of every receivership—the orderly winding down of a business in a manner that maximizes value for investors.

We will come back to these four stages in a minute, but first it is important to understand the background context that gives rise to a receivership.


Three Signs You Should Sue Your Financial Advisor For Negligence Or Malpractice

Posted on Dec 24th, 2015

Some investor claims are easy to see, such as when money is simply missing from an account or a financial advisor has been arrested for securities fraud. In other cases, a financial advisor has been negligent. The financial advisor did not commit fraud, but he did make mistakes that caused investment losses. These cases are more difficult for an investor to spot. Here are the three things we see in most of the investor claims we file against financial advisors for malpractice or negligence.


The One Reason Why Variable Annuities Are Almost Always A Bad Idea

Posted on Jun 23rd, 2015

Financial advisors love to sell variable annuities. The reason is simple—commissions of up to 8%. If a financial advisor can sell you a $200,000 variable annuity, that means commissions of up to $16,000. Not bad for a day’s work!

Unfortunately, commissions are just about the only thing that is simple about variable annuities.

The one reason why variable annuities are almost always a bad idea is that they are too complicated for ordinary investors (and normal people in general) to understand. Seriously, have you ever tried to read a variable annuity policy? Here is just one example from an actual policy. Try to stay awake through this, because there is a lot more you urgently need to know about variable annuities:


Can I “Sue” My Financial Advisor?

Posted on May 6th, 2015

If your financial advisor has caused investment losses, you may want to sue your financial advisor. For better or for worse, you may instead be forced out of court and into a FINRA arbitration. This post explains why securities litigation frequently ends up in FINRA arbitration, and what you can expect from the FINRA arbitration process.


How to Report Investment Fraud

Posted on May 5th, 2015

Without an investment fraud lawyer, you can easily spend hour filing investment fraud reports with federal, state, and local agencies. While doing so is often a good idea, the payout can be low.


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