Posted on Nov 4th, 2015
According to an SEC complaint filed in federal court a few days ago, investors who trusted Roy Dekel and Diverse Financial Corporation in Newport Beach may have instead invested in a multimillion dollar Ponzi scheme.
Of course all Ponzi scheme victims deserve sympathy, but I am particularly sympathetic to the victims in this case because, from the facts in the SEC’s complaint, this scheme lacked some of the common red flags that indicate that an investment is really a scam.
While many investment scams offer unrealistic returns, the promissory notes that Roy Dekel and Diverse Financial offered through DF Capital Partners, LLC offered annual returns of 6-9%.
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.
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: