Articles Posted in Regulation A

Stoltmann Law Offices, a Chicago-based securities and consumer protection law firm, is representing investors in FINRA Arbitration cases involving brokerage firms and speculative, high-risk investments.  One of the firm’s latest filings on behalf of an investor is against FINRA registered brokerage firm Moloney Securities. The firm is headquartered in Manchester, Missouri and offers a wide range of  brokerage services to its clients in all fifty states.  Moloney Securities also uses dozens of other names depending which state it is operating in, which are identified in the tags below.

The recent claim, reported in FINRA Case No. 22-01465, involves two speculative investments masked as fixed-income – GWG L-Bonds and Legion Capital Bonds. The issues with GWG L-Bonds have been written about extensively by Stoltmann Law Offices. These L-Bonds were speculative, illiquid bonds that were subordinated to hundreds of millions in debt, in a company that was nothing more than a penny-stock niche finance company that had lost hundreds of millions of dollars in 2019 and 2020. That barely scratches the surface when it comes to issues related to GWG and what investors were not told by aggressive financial advisor-sales reps.

This specific claim also involves debt obligations issued by Legion Capital, which is a publicly-held private equity company that provides loans for real estate development. Although public (LGCP), the stock has virtually no trading volume is worth $0.00020 per share, and trades “OTC” or “over the counter”.  Financial records establish that Legion Capital has thirteen employees, has virtually no net-income, and has revenue of under one million dollars. Legion has a market cap of about $3,280 and is registered as a Regulation A company.

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