Securities Lawyers Blog
David Mura was recently barred by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) over allegations concerning the sale of unregistered securities away from his associated brokerage firm.
From September 2002 through April 2011, Mura was a registered representative and branch office manager with J.P. Turner & Co., LLC (J.P. Turner), a broker-dealer headquartered in Atlanta, Georgia. Thereafter, Mura was associated with Aegis Capital Corp. from April 2011 until October 2012. According to the SEC, from mid-2007 through 2012, Mura led a team of individuals that managed several limited liability companies (LLCs) including Charge-On Demand LLC (COD), Innovations Group Enterprises LLC (IGE), and Stucco LLC and directed and participated an effort to solicit investors in the sale of unregistered promissory notes issued by the LLCs (LLC Promissory Notes).
According to the SEC’s order, Rising Storm Technologies LLC (“Rising Storm”) was created 2006 to pursue various business ideas. Mura invested in Rising Storm in 2008 and caused the LLCs to take over Rising Storm’s business. Edward Tackaberry (Tackaberry), a resident of Fairport, New York was allegedly employed by Mura as a product salesman. Tackaberry had been previously barred from associating with any broker or dealer based on a September 2007 case brought by the SEC accusing Tackaberry of securities fraud.
Mura allegedly issued the LLC Promissory Notes to a number of investors from January 2008 through September 2009. The SEC alleged that Mura led meetings with potential investors and made many oral representations regarding the LLCs and their operations. Mura encouraged potential investors to invest and directed others to solicit investors to invest in the LLCs by executing the LLC Promissory Notes.
The LLC Promissory Notes were not registered with the SEC as required under the securities laws. The terms of the LLC Promissory Notes obligated the LLC to repay the principal in twenty-four months plus and carried an eight percent interest rate. The LLC Promissory Notes also entitled an investor to a stated percentage of the issuing LLC’s profits. However, the LLCs did not make interest payments to the investors, contrary to the terms of the LLC Promissory Notes.
According to the SEC’s order, in or around 2010, Mura persuaded many investors to exchange their interests in the LLCs for an interest in a company called Worldwide Medical LLC (Worldwide Medical). The SEC found that Worldwide Medical did not have significant assets and therefore the investors’ interests in Worldwide Medical were essentially worthless as a result. At least seventeen individuals invested over $850,000 in Rising Storm and the LLCs between July 2007 and September 2009. Further, some of the investors invested all or most of their retirement savings in the LLC Promissory Notes.
In addition to the LLC Promissory Notes, several investors have initiated complaints alleging that Mura made unauthorized trades and churned their accounts. These complaints allege that Mura made significant commissions through excessive trading activity while the customers accounts suffered substantial losses.
The attorneys at Gana Weinstein LLP are experienced in investigating claims of financial fraud. Our attorneys can help you detect and uncover suspicious activity in your accounts. Our consultations are free of charge and the firm is only compensated if you recover.