The Florida Office of Financial Regulation today announced that Rebecca Gonzalez and Matthew Braun were arrested for their alleged role in an investment fraud scheme. The duo face charges of organized fraud, securities fraud, selling unregistered securities and sale of securities by unregistered persons. [Read more…] about South Florida Duo Arrested for Alleged Fish Farm Investment Fraud
Florida Office of Financial Regulation
OFR Issues Administrative Complaint Against Riverside Chevrolet
The Florida Office of Financial Regulation today announced that an administrative complaint has been filed against Riverside Chevrolet, LLC d/b/a Riverside Chevrolet for violations of Chapter 520, Florida Statutes. The agency is seeking a revocation of licensure and an administrative fine.
Division of Consumer Finance Director Gregory Oaks said, “This examination is ongoing. Consumers who suspect questionable business practices are encouraged to file a complaint with the Florida Office of Financial Regulation online at flofr.com or by calling (850) 487-9687.”
The agency’s administrative complaint alleges that Riverside Chevrolet failed to pay off liens on vehicles which were traded in, in violation of the retail installment contracts, and then resold trade-in vehicles, despite not having legal title to sell the vehicles.
OFR Issues Administrative Complaint in Woodbridge Case
Woodbridge Investors Encouraged to Come Forward
The Florida Office of Financial Regulation today announced that an administrative complaint has been filed against 10 unregistered firms and individuals, who offered and sold unregistered securities of Woodbridge Capital Investments, Inc., and other associated companies, while not registered as required by Chapter 517, Florida Statutes.
Commissioner Drew J. Breakspear said, “The Florida Office of Financial Regulation is committed to protecting Floridians from financial crime. Illegal financial activity will not be tolerated, and we will continue fighting for victims. Thank you to our investigators and our state and federal partners who are working to move this case forward.”
In its first wave of actions, the agency’s administrative complaint alleges that the named sales agents and companies violated the Florida Securities and Investor Protection Act by unlawfully offering unregistered securities for sale to Floridians. The agency further alleges that more than 3,300 violations took place. The sales agents are accused of having sold investments offered by Woodbridge to more than 800 Florida victims, who collectively invested more than $100 million.
Investments in Woodbridge First Position Commercial Mortgages were touted as very safe and promised interest rates as high as six percent to investors. However, in a separate civil complaint filed by the Securities and Exchange Commission in December 2017, they alleged that most of the investors’ money was used to pay commissions to sales agents, to pay interest to already existing investors and to pay the personal expenses of the company’s president.
This investigation is ongoing. The Florida Office of Financial Regulation sent a questionnaire in November 2017 to more than 800 Floridians believed to be Woodbridge investors. Investors are encouraged to return the completed questionnaire as soon as possible, if you have not already done so. Additionally, any Woodbridge investor who has not received a questionnaire should contact the Florida Office of Financial Regulation at (850) 487-9687.
The administrative complaint has been issued against:
- Barry Kornfeld and Ferne Kornfeld, of Parkland, FEK Enterprises, Inc., dba First Financial Tax Group operating in Boca Raton and Boynton Beach;
- Lynnette Robbins and Knowles Systems Inc., of The Villages;
- Albert Klager and Atlantic Insurance & Financial Services, Inc., of Vero Beach;
- Andrew Costa and Costa Financial Insurance, Inc., of Fort Lauderdale; and
- James Gilchrist of Fort Pierce.
Read the administrative complaint here.
Consumer Alert: Retirement Planning Tips
Planning for something that seems far off in the future or feels unattainable, like retirement, may seem like a daunting task. According to the National Retirement Planning Coalition, only 22 percent of baby boomers believe that they are adequately preparing financially for retirement, and 58 percent of generation x-ers haven’t even tried to calculate how much they need for retirement. The Florida Office of Financial Regulation reminds Floridians that having a comprehensive retirement plan is key to a successful and stress-free retirement. Below are tips to get you started:
Think about your retirement goals. Do you plan to travel extensively, live in a different city or plan to retire at a certain age? Thinking about what you want out of retirement will help you better understand how much money you will need.
Make a plan. After assessing your desired retirement goals and financial situation, create a savings strategy. Aim to increase your savings regularly, and periodically re-assess and potentially re-align your strategy as your goals, financial situation, and life changes. Online retirement calculators can be very helpful. Be sure to include healthcare costs in your retirement plan.
Protect yourself from fraud. Unfortunately, retirees are targets of scams. Know the red flags of common scams ensnaring retirees, like investment scams, reverse mortgage scams and identity theft. Be wary of unsolicited offers and remember, if it sounds too good to be true, it probably is.
The Florida Office of Financial Regulation offers Floridians a robust online Consumer Knowledge Center, where you can find more information on many financial topics, including tips on how to spot potential financial scams.
Man Sentenced for Role in $6 Million Tax Fraud Scheme
The Florida Office of Financial Regulation today announced that Weguel Legentus was sentenced to 33 months in prison to be followed by three years of probation. Legentus pled guilty in December 2017, to charges of conspiring to defraud the government and filing fraudulent claims.
Commissioner Drew J. Breakspear said, “The Florida Office of Financial Regulation will continue to work tirelessly with our state and federal partners to bring financial criminals to justice. I thank our investigative team, the Internal Revenue Service’s Criminal Investigation team, the Margate Police Department and the Broward County Sheriff’s Office for their hard work in this case.”
Legentus, along with co-conspirator Chantale Baptiste, operated a tax preparation business, CMB Financial Group, Inc., with offices in Broward and Palm Beach counties. They provided clients with copies of their prepared tax returns, while falsely submitting an altered copy of the return, with inflated figures, to the Internal Revenue Service. The resulting tax refund was cashed, and transferred into bank accounts controlled by Legentus and Baptiste. The duo would either retain the full amount for their personal use, or provide clients with a portion of the refund and pocket the remainder. Approximately $6 million was stolen by Legentus and Baptiste in this fraud scheme.
Florida Office of Financial Regulation Celebrates Financial Literacy Month
The Florida Office of Financial Regulation (OFR) today recognizes April as Financial Literacy Month, and encourages Floridians to establish smart financial habits.
Commissioner Drew J. Breakspear said, “The more Floridians understand about money, savings and credit, the better equipped they are to make informed decisions about banking, loans and investments. Financial literacy is the gateway to financial stability and economic success.”
The OFR offers Floridians a robust online Consumer Knowledge Center, where consumers can find valuable financial literacy resources, including OFR consumer alerts and state and federal partner websites. This month and year-round, the OFR offers financial literacy tips and helpful information via Twitter. Follow us @FlFinancialReg to learn more.
Ocala Man Enters Guilty Plea in Fraud Case
Scammer allegedly solicited investments in fake Styrofoam recycling company
The Florida Office of Financial Regulation (OFR) today announced that Donald Edward Smith pled guilty on March 23, 2018, to one count of conspiracy to commit wire fraud and one count of tax fraud. Smith allegedly bilked more than $3.6 million from hundreds of investors through several scams, including one involving the sale of stock in a company he promoted through an online radio show. The company, Phoenix Synergies, was owned by Smith, and claimed to be in the business of recycling and repurposing Styrofoam.
OFR Commissioner Drew J. Breakspear said, “We’re committed to fighting fraud and ensuring that Floridians are protected from these scams. Unfortunately, scams can happen to anyone, anywhere. I encourage Floridians to learn how to spot these fraudsters, and file a complaint with our agency if something doesn’t seem right.”
Smith agreed to pay $3.5 million in restitution and surrender all previously seized assets.
During his regular appearances as an online guest of “Phoenix Rising Radio,” Smith advertised the capabilities of a patented Styrofoam recycling machine, which he claimed would alleviate landfills of voluminous amounts of Styrofoam. The investigation, however, found no evidence to prove the existence of such a machine, and that Smith did not use investors’ money for his business, as represented.
The OFR served as a co-investigative agency in this case, and the OFR appreciates the assistance of the Federal Bureau of Investigation and the Internal Revenue Service.
If you feel you have been a victim of financial fraud, please file a complaint with the Office of Financial Regulation at flofr.com, or by calling (850) 487-9687.
Consumer Alert: How to Spot the Warning Signs of Identity Theft
Identity theft reached a record high in 2017, impacting nearly 17 million Americans. The Florida Office of Financial Regulation (OFR) encourages you to take steps to protect your identity and personal information. Identity theft can happen to anyone, anywhere, and sometimes taking the appropriate precaution just isn’t enough. As soon as thieves have your personal information, they can drain your accounts, charge your credit cards, open new accounts, get medical treatment on your health insurance, and file taxes in your name – and even steal your tax refund.<
How do you know if your identity has been stolen? Be on the lookout for these key indicators of identity theft.
- You see suspicious transactions on your bank account that you don’t recognize.
- You find unfamiliar accounts or charges on your credit report.
- You get calls from debt collectors about debts that aren’t yours.
- The Internal Revenue Service notifies you that more than one tax return was filed in your name, or that you have income from an employer for whom you don’t work.
- You’ve stopped getting certain bills or other mail.
- Medical providers bill you for services you didn’t use.
- You’re notified that your information was compromised by a data breach.
What can I do if my identity has been stolen?
- Report it as soon as possible, and get a recovery plan.
- Depending on what information is lost or exposed, check out the steps you can take to recover.
How can I protect myself?
- Be vigilant.
- Monitor your bank and credit card transactions regularly.
- Shred unnecessary personal documents and unwanted mail.
- Check your credit report and credit score quarterly, or at least annually.
- Turn on two-factor authentication wherever possible. Enabling two-factor authentication on sites that have that capability, where a separate action must be taken beyond providing a username and password to access an account, can make it more difficult for fraudsters to take over your accounts.
- If necessary, place fraud alerts or security freezes on your credit files.
- Sign up for account alerts. Early detection via text messages and emails can help minimize the damage of identity theft.
The OFR offers Floridians a robust online Consumer Knowledge Center, where you can find more information on several financial topics.
Sarasota Man Sentenced for Role in Advance Fee Loan Scheme
The Office of Financial Regulation today announced that Stephen Hummell was sentenced to three months in jail to be followed by 15 years of probation, after a guilty plea for his role in an advance fee loan scam. He is barred from the lending industry for life.
Commissioner Drew J. Breakspear said, “Collecting an advance fee for the promise of a loan is illegal in Florida, and our investigators will continue to work tirelessly to ensure Floridians are protected from these scams. I thank the Sarasota County State Attorney’s Office and the Cobb County Sheriff’s Office in Georgia for their assistance in this case.”
Hummell used a website, capitalfirstinvestorsgroup.com, to offer online loans to prospective borrowers. He purportedly assessed and collected more than $1.2 million in advance fees from more than 40 victims in exchange for promising them business loans. However, no loans or refunds ever materialized. The investigation revealed that the victims’ money was used for personal expenses.
To report investment fraud or suspicious activity, please file a complaint with the Florida Office of Financial Regulation online, flofr.com, or call (850) 487-9687.
Consumer Alert: America Saves Week
America Saves Week is recognized February 26 – March 2, to raise awareness and empower you to save money and build personal wealth. The Florida Office of Financial Regulation encourages Floridians to take time to assess their finances and make savings a regular habit.
America Saves is asking individuals to take a pledge to commit to saving money on a regular basis. Take the pledge to save at americasaves.org. Below are some helpful steps to ensure success:
- Assess your finances. Review your income and expenses, noting which expenses are necessary and which aren’t. Determine an amount to save every month.
- Set a goal. When deciding on goals, be sure to include short-term goals and long-term goals. Short-term goals are helpful for more immediate purchases, like a vacation or car. Long-term goals are important for retirement planning and building wealth.
- Create an action plan. Consider how long it will take you to reach your desired goal. It’s a good strategy to increase your savings amount each year when you review your finances.
- Make savings a habit. Make a commitment to paying yourself every month, just like you would a monthly expense. Automatic withdrawals are a simple way to make saving easy.
The Florida Office of Financial Regulation offers Floridians a robust online Consumer Knowledge Center, where you can find more information on several financial topics.
