North Carolina Securities Fraud Attorneys

Malecki Law is a New York City securities fraud law firm with national reach, and its securities fraud attorneys are here to help North Carolina residents who have been victimized by securities fraud.

Located in the Southeastern United States, North Carolina is home to over 10 million people and one of the largest banking centers in the country. North Carolina has ranked the best state for business according to Forbes for three consecutive years starting in 2017. Home to the NASCAR Hall of Fame, African American Cultural Complex, 14 national parks, and a flourishing non-profit arts and culture industry, North Carolina brings in millions of tourists each year and while metropolitan areas continue to grow, fraud exploitation is still a reality.

A North Carolina based American newspaper publication, namely The McDowell News, wrote about a federal grant that established in 2019 for a unified reporting platform that would create transparency in communication between the securities industry and regulators to assist elders in bringing investment fraud to light. Malecki Law’s elder fraud attorneys are experienced in securities and investment loss matters, as the elderly community is one of the most vulnerable communities. Senior investors are severely impacted by financial fraud yet that demographic tends to under-report their experiences which in some cases deplete their life savings. This reporting platform is intended to assist elderly citizens in bringing suspected fraud to the forefront and combat the issue of under-reporting. The U.S Department of Justice is funding this platform so that there are stronger cooperation and partnership ties between enforcement agencies and various financial firms. This proposal was offered to states, and North Carolina was one of two states that decided to test this voluntary reporting platform which was first scheduled to go live in November 2019. According to McDowell News, North Carolina Secretary of State Elaine Marshall expressed that for every financial fraud reported by a senior individual there are over 40 cases that are going unreported. This platform was hoped to be instrumental in efficiently establishing communication between broker firms, law enforcement, Adult Protective Services, regulators, and the Secretary of State respectively.

At the outset of the coronavirus pandemic, Senator Richard Burr found himself in hot water for selling large amounts of stock ahead of the COVID-19 public health crisis. In March 2019, Senator Burr allegedly dumped somewhere between $600,000 and $1.72 million dollars of the stock, according to Alan Jacobson who filed the complaint. According to reports, Jacobson purportedly claimed that Burr was aware and already knew about the health crisis when he sold these stocks because he was supposedly present at a coronavirus outbreak briefing in late January. While assuring the public that the nation is equipped to handle the global pandemic, Burr allegedly began dumping stocks rapidly despite being involved in private meetings that foresaw a decline in the economy. The Senator reportedly sold the stock at issue when it was a high $56.37 and there was a sharp decrease in the stock soon after to $20.61. Senator Burr was supposedly at a luncheon in late February in which he divulged some details regarding a potential financial crisis to wealthy individuals close to him. Senator Richard Burr is seemingly in violation of the Securities & Exchange Commission Rule as well as the Stock Act which specifically details restrictions on government officials in taking part in actions to profit off of confidential information.

Sampson Pearson, an independent contractor for Northwestern Mutual Life Insurance Co., is awaiting trial in North Carolina’s federal court for purportedly bilking funds from his clients’ accounts. Pearson allegedly took money from his clients’ annuities and schemed through mail fraud, identity theft, and false tax returns for over a decade which he supposedly used to fund his lifestyle and personal expenses. Pearson reportedly used names, social security numbers, and other forms of identification to fraud his clients and built their trust with misleading firm documents. Pearson allegedly asserted that he was simply investing their capital in a new and different Northwestern Mutual Investment vehicle. According to reports, a client became suspicious of her loan records and launched what became an investigation against Pearson and Northwestern Mutual Investments. Northwestern Mutual Investment reportedly indicated that they have no part in this scheme and that they would take proactive steps to prevent this type of fraud within their company hereafter. According to reports, Pearson is barred from the securities industry on the authority of FINRA and Northwestern Mutual Life Insurance Co was ordered to pay a regulatory fine of $350,000 for failure to prevent such a scheme.

Citizens from any walk of life are vulnerable to fraud. As stated in the situations above, fraud can take on multiple forms that negatively impact specific individuals or the financial system as a whole. Malecki Law has securities fraud attorneys who have extensive experience in representing a diverse clientele from both Fortune 500 companies as well as everyday individuals who have been impacted by fraud. For over two decades, Jenice Malecki and her securities fraud law firm Malecki Law has worked to provide insight on securities law and utilize her dynamic exposure to run a firm that satisfies the needs of those who need support for audits, arbitrations, regulatory proceedings and unsuitability claims to name a few. The securities fraud lawyers at Malecki Law are dedicated to understanding both aisles of the legal argument and utilize comprehensive understanding of the complexities within the securities industry to bring favorable results for our North Carolina clients.

To schedule a free initial consultation with Malecki Law, please call (212) 943-1233, or email jenice@maleckilaw.com.