Inofin Fraud

More investors who were offered the Inofin promissory notes by a securities-licensed stockbroker are joining the arbitration case filed by Chapman & Associates against that stockbroker’s employer, a nationwide securities broker-dealer firm.

Inofin, a subprime auto loan Ponzi scheme perpetrated from Massachusets, raised millions of dollars from investors in Massachusetts, the District of Columbia, and elsewhere.  Investigation by the securities litigation firm of Chapman & Associates determined that Inofin promissory notes were offered and sold to some of the investors by a securities-licensed individual.   Chapman & Associates often represents investors who lost their savings in fraudulent investment schemes.

Inofin is currently in bankruptcy.  The bankruptcy trustee has instituted proceedings to recover assets that belonged to Inofin, so they may be distributed to Inofin’s victims.  The next hearing in the bankruptcy case will be held on September 7, 2011 at 11:30 AM, in Boston Courtroom 1, 12th Floor, at 5 Post Office Square, Boston, MA 02109.

Investors who lost money in the Inofin scheme may contact the securities law firm of Chapman and Associates for a free evaluation of their claims, at the toll free number 877-410-8172 or by email at arosca@jscltd.com .  For more information about Chapman & Associates, visit the law firm’s website, at www.johnschapman.com .

The securities litigation law firm of Chapman & Associates filed a case on behalf of Inofin investors who lost their savings in that scheme.  The Chapman & Associates’ lawsuit targets a national securities broker-dealer firm that employed a stockbroker who played a leading role in perpetrating the Inofin scheme.  The Chapman lawsuit charges that broker-dealer firm with failing to supervise its stockbroker and allowing him to sell fraudulent investments to the public.

Massachusetts auto subprime lender Inofin Inc. and its principals, Michael Cuomo, Kevin Mann, and Melissa George, were recently accused of perpetrating a Ponzi scheme that defrauded hundreds of investors in Massachusetts and elsewhere.  Inofin illegally raised over $110 million from at least 400 investors nationwide, according to the securities regulators.

Investigation by the securities law firm of Chapman & Associates established that Inofin and its principals raised money from investors through the sale of promissory notes.  The Chapman & Associates attorneys determined that the Inofin promissory notes were unregistered and non-exempt from registration, in violation of the federal securities rules and regulations.

Many Inofin investors purchased the Inofin promissory notes from David Affeldt, a Washington, D.C. tax attorney.  Affeldt was formerly employed as chief counsel for the United States’ Senate Committee on Aging.  He subsequently associated himself with, and became the agent of, a registered representative who offered and sold Inofin to the investing public.  Affeldt received over $135,000 in sales commissions in exchange for referring investors to the Inofin scheme.

Potential investors in Inofin were told that their funds would be solely used to fund subprime auto loans through used cars dealerships.  Investors were assured their investments would receive returns of 9 to 15 percent because Inofin loaned the funds to its subprime borrowers at rates of around 20 percent.

Starting in 2004, the Inofin principals began to diverge their investors’ funds to unauthorized uses, for their own benefits, without disclosing this to investors or requesting their permission.

“The Inofin ‘investment opportunity’ was a classic fraudulent scheme where the perpetrators raise funds from subsequent investors and convert them for their own purposes to finance money-losing ventures as well as their luxurious life styles,” said John Chapman, a securities attorney.

“Once a fraudulent scheme collapses there is usually not much left to be recovered for investors from the scheme’s assets through bankruptcy,” said Chapman.  In Inofin’s case, it appears the company has few funds left because much was siphoned to cover the other, money-losing businesses of Inofin’s principals.

Chapman & Associates has established that many of the Inofin investors may be able to recover money they lost from certain financial institutions that were complicit in the perpetration of the Inofin scheme.

“Financial institutions have a duty to adequately supervise their agents and make sure their activities do not violate the securities rules and regulations,” said John Chapman, a securities attorney.  “We will continue to prosecute claims against financial businesses that are ‘asleep at the wheel’ while their representatives help defraud the investing public.  We will make such organizations compensate their victims for losses,” stated Chapman.

By filing this lawsuit, Chapman & Associates is taking legal action on behalf of Inofin investors who lost their savings, against those financial organizations that assisted in the perpetration of the Inofin scheme. For more information about the securities law firm of Chapman & Associates, go to www.johnschapman.com. For more background about the Inofin case, go to www.inofinfraud.com.

Inofin investors may contact the law offices of John S. Chapman & Associates for a free evaluation of their claims at 216-241-8172 or 877-410-8172.

The federal judge overseeing Inofin’s bankruptcy authorized the Court-appointed Trustee to continue to operate Inofin until August 22, 2011.

Also, the judge also authorized the Trustee, over the objections of one of Inofin’s secured creditors, to use cash collateral as set forth in the budget submitted by the Trustee, until June 29, 2011.  On that date, a new hearing will take place in the bankruptcy court.

The securities litigation law firm of Chapman & Associates has been retained by Inofin investors to recover their investments.   Chapman & Associates is preparing to take action against a large financial institution it accuses of being complicit to the Inofin scheme.

Inofin investors may contact the law offices of John S. Chapman & Associates for a free evaluation of their claims at 216-241-8172 or 877-410-8172.  For more information about the securities law firm of Chapman & Associates, go to www.johnschapman.com .

The securities litigation law firm of Chapman & Associates has been retained by investors who lost money in the Inofin fraud perpetrated by Michael Cuomo and Kevin Mann.  The Chapman & Associates lawyers are preparing to take legal action on behalf of their clients, to recover their losses.

Chapman’s lawsuit will target certain financial organizations that assisted in the perpetration of the Inofin scheme.  “Our investigation established that  the Inofin unlawful securities were sold to the investing public while those financial organizations who were supposed to prevent such sales were asleep at the wheel,” Chapman stated.  “We will hold those organizations liable for their failure to prevent their agents from violating the securities rules and regulations, in breach of their duties to the investing public,” Chapman continued.

Investors who lost money in the Inofin scheme may contact the law offices of John S. Chapman & Associates for a free evaluation of their claims at 216-241-8172 or 877-410-8172.  For more information about the securities law firm of Chapman & Associates, go to www.johnschapman.com .

At least three of the defendants sued by the Securities and Exchange Commission in connection with the Inofin scheme indicated they are in settlement negotiations with the Commission, over the charges alleged in the Commission’ lawsuit.

David Affeldt, as well as Kevin Keough and Nancy Keough, separately asked the federal district court for 60-day extensions to answer the charges filed against them by the Securities and Exchange Commission, in the Inofin lawsuit.

Affeldt and the Keoughs have been accused by state and federal securities regulators of selling the Inofin fraudulent securities to the investing public.

Investigation by the securities law firm of Chapman & Associates indicates the Keoughs and Affeldt made hundreds of thousands of dollars in commissions for selling the Inofin “investment opportunity” to their customers.  “The Inofin securities were neither registered nor exempt from registration,” stated John Chapman, a securities attorney.  “Thus, the Inofin offering was in violation of the federal securities laws and regulations,” Chapman stated.

The law firm of Chapman & Associates has been in contact with Inofin investors and is preparing to take action on their behalf, against a large financial organization that assisted in the perpetration of the Inofin scheme.

Investors who lost money in the Inofin scheme may contact the law offices of John S. Chapman & Associates for a free evaluation of their claims at 216-241-8172 or 877-410-8172.  For more information about the securities law firm of Chapman & Associates, go to www.johnschapman.com .

The Motions for Extension of Time filed by Affeldt and the Keoughs may be accessed here:

Kevin Keough – Inofin Lawsuit – Motion for Extension of Time

David Affeldt – Inofin Lawsuit – Motion for Extension of Time

For more information about the Securities and Exchange Commission’s case against Inofin and its participants, go here: SEC Litigation Release – Inofin

The Massachusetts Securities Division charged Inofin Inc., along with its principals and salesmen with fraud in connection with the sales of unregistered securities.  The Complaint filed by the Secretary of State against Inofin and its principals may be accessed here: Inofin complaint.  The Complaint filed by the Secretary of State against Inofin’s top salesmen may be accessed here: Keough and Affeldt complaint.

Inofin, a subprime auto loan company, is accused of fraudulently raising over $110 million from hundreds of investors in Massachusetts and elsewhere.  The Chapman & Associates attorneys determined the Inofin principals and salesmen made untrue statements or omissions of material facts to investors and regulators, pertaining to Inofin’s business and financial success.

The securities law firm of Chapman & Associates has been investigating the Inofin scheme and is preparing to take action on behalf of investors who invested money in Inofin.  If you lost money in the Inofin scheme, you may contact the law offices of John S. Chapman & Associates for a free evaluation of your claims at 216-241-8172 or 877-410-8172.  For more information about the securities law firm of Chapman & Associates, go to www.johnschapman.com.

Massachusetts auto subprime lender Inofin Inc. and its principals, Michael Cuomo, Kevin Mann, and Melissa George, were recently accused of perpetrating a Ponzi scheme that defrauded hundreds of investors in Massachusetts and elsewhere.  Inofin illegally raised over $110 million from at least 400 investors nationwide, according to the securities regulators.

Investigation by the securities law firm of Chapman & Associates established that Inofin and its principals raised money from investors through the sale promissory notes.  The Chapman & Associates lawyers determined the Inofin promissory notes were unregistered and non-exempt from registration, in violation of the federal securities rules and regulations.

The Chapman & Associates attorneys determined that potential investors in Inofin were told their funds would be solely used to fund subprime auto loans, through used cars dealerships.  Investors were assured their investments would receive returns of 9 to 15 percent, because Inofin loaned the funds to its subprime borrowers at rates of around 20 percent.

However, starting in 2004, the Inofin principals began to diverge their investors’ funds to unauthorized uses, for their own benefits, without disclosing this to investors or requesting their permission.

“The Inofin ‘investment opportunity’ was a classic fraudulent scheme, where the perpetrators raise funds from subsequent investors and convert them for their own purposes, to finance money-losing ventures as well as their luxurious life styles,” said John Chapman, a securities attorney.

“Once a fraudulent scheme collapses, there is usually not much left to be recovered for investors from the scheme’s assets, through bankruptcy or receivership,” said Chapman.  In Inofin’s case, it appears the company has fewer funds left, as much was siphoned to cover the other, money-losing businesses of Inofin’s principals.

However, the Chapman & Associates attorneys established that many of the Inofin investors may be able to recover money they lost from certain financial institutions that played a role in perpetrating the Inofin scheme.

“Certain financial institutions have a duty to adequately supervise their agents and make sure their activities do not violate the securities rules and regulations,” said John Chapman, a securities attorney.  “We will continue to prosecute claims against financial businesses that are ‘asleep at the wheel’ while their representatives help defraud the investing public.  We will make such organizations compensate their victims for losses,” stated Chapman.

The Chapman & Associates attorneys are preparing to take legal action on behalf of Inofin investors who lost their savings, against those financial organizations that assisted in the perpetration of the Inofin scheme.  Investors who lost money in Inofin are encouraged to contact the law offices of Chapman & Associates for a free evaluation of their case. Please call 216-241-8172 or 877-410-8172 and ask for John Chapman or Alin Rosca. For more information about the securities law firm of Chapman & Associates, go to www.johnschapman.com. For more information about the Inofin case, go to www.inofinfraud.com .