Tips to Protect Yourself and Your Family Against Internet Fraud

Mario Massillamany's Tips to Prevent Internet Fraud:

Tips for Avoiding Internet Auction Fraud:

• Understand as much as possible about how the auction works, what your obligations are as a buyer, and what the seller’s obligations are before you bid.

• Find out what actions the website/company takes if a problem occurs and consider insuring the transaction and shipment.

• Learn as much as possible about the seller, especially if the only information you have is an e-mail address.  If it is a business, check the Better Business Bureau where the seller/business is located.

• Examine the feedback on the seller.

• Determine what method of payment the seller is asking from the buyer and where he/she is asking to send payment.

• If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong.

• Be cautious when dealing with sellers outside the United States.  If a problem occurs with the auction transaction, it could be much more difficult to rectify.

• Ask the seller about when delivery can be expected and whether the merchandise is covered by a warranty or can be exchanged if there is a problem.

• Make sure there are no unexpected costs, including whether shipping and handling is included in the auction price.

• There should be no reason to give out your social security number or driver’s license number to the seller.

Tips for Avoiding Non-Delivery of Merchandise:

• Make sure you are purchasing merchandise from a reputable source.

• Do your homework on the individual or company to ensure that they are legitimate.

• Obtain a physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working.

• Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn’t required to open the account.

• Consider not purchasing from sellers who won’t provide you with this type of information.

• Check with the Better Business Bureau from the seller’s area.

• Check out other websites regarding this person/company.

• Don’t judge a person or company by their website.  Flashy websites can be set up quickly.

• Be cautious when responding to special investment offers, especially through unsolicited e-mail.

• Be cautious when dealing with individuals/companies from outside your own country.

• Inquire about returns and warranties.

• If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong.

• Make sure the transaction is secure when you electronically send your credit card numbers.

• Consider using an escrow or alternate payment service

Tips for Avoiding Credit Card Fraud:

• Don’t give out your credit card number online unless the site is a secure and reputable.  Sometimes a tiny icon of a padlock appears to symbolize a higher level of security to transmit data.  This icon is not a guarantee of a secure site, but provides some assurance.

• Don’t trust a site just because it claims to be secure.

• Before using the site, check out the security/encryption software it uses.

• Make sure you are purchasing merchandise from a reputable source.

• Do your homework on the individual or company to ensure that they are legitimate.

• Obtain a physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working.

• Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn’t required to open the account.

• Consider not purchasing from sellers who won’t provide you with this type of information.

• Check with the Better Business Bureau from the seller’s area.

• Check out other websites regarding this person/company.

• Don’t judge a person or company by their website.  Flashy websites can be set up quickly.

• Be cautious when responding to special investment offers, especially through unsolicited e-mail.

• Be cautious when dealing with individuals/companies from outside your own country.

• If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong.

• Make sure the transaction is secure when you electronically send your credit card number.

• Keep a list of all your credit cards and account information along with the card issuer’s  contact information.  If anything looks suspicious or you lose your credit card(s), contact the card issuer immediately.

Tips for Avoiding Investment Fraud:

• Don’t judge a person or company by their website.  Flashy websites can be set up quickly.

• Don’t invest in anything you are not absolutely sure about.  Do your homework on the investment and the company to ensure that they are legitimate.

• Check out other websites regarding this person/company.

• Be cautious when responding to special investment offers, especially through unsolicited e-mail.

• Be cautious when dealing with individuals/companies from outside your own country.

• Inquire about all the terms and conditions.

Tips for Avoiding Business Fraud:

• Purchase merchandise from reputable dealers or establishments.

• Obtain physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working.

• Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn’t required to open the account.

• Consider not purchasing from sellers who won’t provide you with this type of information.

• Purchase merchandise directly from the individual/company that holds the trademark, copyright, or patent.

Tips for Avoiding the Nigerian Letter or “419” Fraud:

• Be skeptical of individuals representing themselves as Nigerian or foreign government officials asking for your help in placing large sums of money in overseas bank accounts.

• Do not believe the promise of larges sums of money for your cooperation.

• Guard your account information carefully.

Mario Massillamany Discusses Sugarland Lawsuit In Entertainment Weekely

Indianapolis, Indiana- Mario Massillamany, in Entertainment Weekly, discusses Sugarland's decision making process that tragic night when the stage collapsed at the Indiana State Fair.  During a hearing this morning, Judge Sosin ordered Sugarland to testify next month in depositions regarding their role in the Indiana State Fair Stage collapse.  Sugarland will not be able to use their summer concert schedule as an excuse in an effort to delay the depositions.  Sugarland claims that the tragedy was an "act of God" and also blames the victims that attended the concert for their injuries.

Self-Directed IRA Fraud: Are You A Victim?

What Are Self-Directed IRAs?

Self-directed IRAs are a type of financial instrument which allows a person to invest in a larger range of assets than a traditional IRA. Many of us are familiar with IRAs that invest in stocks, bonds, mutual funds, and certificates of deposit, but self-directed IRAs expand from these more traditional investing avenues, and also allow someone to invest in promissory notes, real estate, precious metals, private placement securities, tax lien certificates, and other investments which may not be registered.

This type of IRA is becoming increasingly popular in the United States, with about $94 billion of retirement funds invested in them. They are completely legal, when used correctly. However, some of the inherent characteristics of this financial instrument have not only attracted legitimate investments, but in addition scammers and fraudsters who use the patina of the self-directed IRAs legality to defraud investors of their life savings.

What Are The Inherent Characteristics Of Self-Directed IRAs That Make Them Susceptible To Fraud?

As with all IRAs, a self-directed IRA must be held by a trustee or custodian. However, with the more traditional IRAs the custodians are typically banks and broker-dealers who only allow investment in firm approved stocks, bonds, mutual funds and CDs. However, with a self-directed IRA the trustee or custodian has no responsibility to investigate the securities offered for investment, or the background of the promoter. Further, they also do not need to keep accurate records or perform audits. With these laxer requirements it is easy to see why those wishing to engage in fraud would be interested in using this financial instrument to perpetrate it.

The fact that this type of IRA allows investment in a broader range of assets can increase the likelihood of fraudulent behavior. For example, unregistered securities are permitted in this type of IRA. There is typically less investigation into this type of security, with less information easily available, and further there is no guarantee that any information provided has been audited. Therefore, in a situation in which more due diligence is typically required there is less opportunity to review accurate information to perform that due diligence.

In addition, the broader range of assets allowed for self-directed IRAs can create unique risks for investors that should be considered, such as lack of liquidity and difficulty in valuing assets. The result of the characteristics of these assets means that the self-directed IRA custodians will often list the value of the assets as the original purchase price, plus any gains as determined arbitrarily by the promoter. These values that are told to investors may not reflect the true value of the investment if sold on the open market. Further, because the custodians don’t have to evaluate the quality or legitimacy of the investments, and have no responsibility for investment performance, these self-promoting statements may go unchecked and unquestioned.

Finally, the fact that self-directed IRAs are a tax-deferred account can impact psychologically how much oversight an investor has over this type of investment instrument. The fact that there is a financial penalty for early withdrawal means people tend to invest in these types of accounts for the long term, when more prudent investors in these types of investments may more actively manage such accounts. This same mind set may also allow the person committing the Ponzi type scheme or other fraud to conduct their fraud longer before their misdeeds are detected.

Scott Starr, a partner in this firm, has stated, “Some of these investment advisors and stockbrokers are clearly committing malpractice and breaching their fiduciary duties” when directing individuals to invest in these self-directed IRAs. Further, he states that “It is not uncommon for these individuals to place their clients in investments that are either too high risk, carry a time horizon that is too far in the future, or fail to properly diversify these portfolios.”

Examples Of Self-Directed IRA Fraud Close To Home

Although fraudulent actions surrounding self-directed IRAs can, unfortunately, happen anywhere in the country the state of Indiana, and surrounding states, have had several instances of this type of fraud coming to light.

1.     Randell Morrison - Indiana

One of the most recent cases of self-directed IRA fraud reported in Indiana is the case of Randell Morrison, which has been reported extensively in the  Fort Wayne, Indiana Journal Gazette. http://www.journalgazette.net/article/20111120/LOCAL/311209934 On November 10, 2011, Mr. Morrison was sentenced to six years in prison, followed by a year of home detention and then one year of probation for bilking 15 investors in Indiana, mainly in the Allen County area, out of $1.4 million.

Mr. Morrison was a businessman in the community, and used his personal associations with fraud victims, including being a friend of the family, and attending country clubs, churches and social clubs with them, to gain their trust over several years. He then convinced these investors to roll their more traditional IRAs and life insurance proceeds into a self-directed IRA custodial company, called Equity Trust, with which he was associated. His victims thought they were investing their money in conservative and traditional investments, but instead once he gained control of the money he used it for his own personal use and for his businesses.

The Indiana Secretary of State, Charlie White, said, “Randell Morrison preyed on those who considered him a friend. He didn’t just gamble with their life savings, he squandered their life savings.” Many of the victims of this scheme were close to retirement age, and have now lost their entire retirement account and life savings. They have suffered not only financial losses, but also emotional and even physical distress because of the fraud perpetuated against them.

2.     Jerry Smith and Jason Snelling - Indiana

Another case in Indiana that is currently pending involves Jerry Smith and Jason Snelling, who are accused of conducting a long-running Ponzi scheme, defrauding investors in three states, Indiana, Ohio and Kentucky, of over $4.5 million. Smith and Snelling were allegedly selling unregistered securities, and neither was licensed to sell them.  

In this case the accusation is that investors were convinced and encouraged to roll over their traditional IRA accounts into self-directed IRAs at a trust company. Then, Smith and Snelling allegedly took the funds from the accounts and used them for their own personal use. The investors had no idea their money was no longer available, since they still received regular statements from the trust company, and even were billed fees on the accounts.

Smith and Snelling are charged with over 50 counts of violations of the Indiana Uniform Securities Act, and charges are pending in both Franklin County and Dearborn County, Indiana.

Things To Consider To Determine If You May Be A Victim Of A Fraudulent Self-Directed IRA

The U.S. Securities and Exchange Commission’s Office of Investor Education and Advocacy (OIEA) and the North American Securities Administration Association (NASAA) have jointly issued an Investor Alert about the potential risks associated with investing in self-directed IRAs. You can find this short PDF here. http://www.sec.gov/investor/alerts/sdira.pdf In addition, here is information you should consider if you’re concerned you may be a victim of self-directed IRA fraud.

• Verify the information in the self-directed IRA. Many of the investments that can be purchased through one of these financial instruments can be hard to value, since they are illiquid. Therefore, the statements provided will often state their value as the price you paid for it, or what the promoter is valuing it at. However, that does not necessarily reflect what the investment could actually be sold for on the open market, which may be a much lower amount.

• Was your choice to get a self-directed IRA the result of an unsolicited investment opportunity from a total stranger, or even a friend? As stated previously, self-directed IRAs are legal and there are some which may produce high rates of return for investors. However, if someone, unsolicited, asked you to invest in such a financial instrument red flags should be raised to determine if they are a legitimate individual, or instead a fraudster.

• Were you promised a guaranteed gain or rate of return, or a low-risk, high reward investments? Similarly, when someone promises you something too good to be true, it usually is. Almost nothing in life is guaranteed, and if there were legitimate low risk, high reward investments out there lots more people would be rich than are today. Too good to be true promises such as these should also raise red flags in your mind, to investigate further about whether you are the victim of self-directed IRA fraud.

• Is the self-directed IRA promoter registered in the state they are doing business, and in addition are the investments they are selling licensed? Many states, including Indiana, have laws and regulations in place which require those selling securities to be registered with the state. Further, only certain types of investments are deemed registered securities. While unregistered securities are permitted to be included in self-directed IRAs they are much riskier, and their inclusion may still violate state law, if not federal law. It is best to make sure what you are purchasing through your self-directed IRA is licensed, and the person you’re purchasing it from is registered to sell you these types of products.

• Have you contacted another professional yet for a second opinion, such as an investment advisor or attorney? Many of the investments that can be purchased through a self-directed IRA are not ones that can be purchased through a traditional IRA, generally for the reason that they are even more inherently risky, illiquid, or complex. Therefore, before investing in such financial instruments it is a good idea to get a second opinion from an independent professional, such as an investment advisor or attorney, to help you determine whether this is a good investment for you.

If You Think You May Be A Victim Of Self-Directed IRA Fraud Call A Securities Fraud Attorney

If you think you may be a victim of fraud using this financial instrument you should act quickly to try to minimize further losses, and potentially try to reclaim money you’ve lost already. To do this, it is best to contact a knowledgeable securities fraud attorney in your area to see if you have a case, and determine the best course of action for you.

If you have lost money in a fraudulent investment scheme involving a self-directed IRA or a third-party custodian or trustee, or have information about one of these scams, you should contact Starr Austen & Miller LLC to learn more about the self-directed IRAs and report your experiences. Our attorneys, Mario Massillamany and Mark Fryman are available for direct live chat every Wednesday at 5 pm.

Indiana Law Firm Investigating Securities Fraud Stemming From Self-Directed IRA Schemes

Fishers, IN, January 3, 2012 - Mario Massillamany of the Indiana law firm of Starr, Austen & Miller, LLP, announces an investigation into securities fraud scams involving self-directed IRAs.  A self-directed IRA is an IRA held by a trustee or custodian that permits an investment in a broader set of assets than is permitted by most IRA custodians. 

Most IRA custodians are banks and broker-dealers that limit the holdings in IRA accounts to firm-approved stocks, bonds, mutual funds and CDs.  Custodians and trustees for self-directed IRAs, however, may allow investors to invest retirement funds in other types of assets such as real estate, promissory notes, tax lien certificates, and private placement securities.  $94 billion of IRA retirement funds are held in self-directed IRAs making them a favorable scam for fraud promoters

Fraud promoters who want to engage in Ponzi schemes or other fraudulent conduct may exploit self-directed IRAs because they allow investors to hold unregistered securities.  Additionally, the custodians or trustees of these accounts have no responsibility to investigate the securities or the background of the promoter.  Furthermore, self-directing IRAs do not typically require the trustee or custodian to keep accurate records or perform audits.

"Some of these investment advisors and stockbrokers are clearly committing malpractice and breaching their fiduciary duties in the way they are advising their clients to invest in their self directed retirement programs such as IRA’s and 401k’s," said attorney Scott Starr.  “It is not uncommon for these individuals to place their clients in investments that are either too high risk, carry a time horizon that is too far in the future, or fail to properly diversify these portfolios."

The self-directed IRA custodial process gives the aura of protection for the investor but it is elusive. A few ways to avoid fraud with self-directed IRAs is to verify information in self-directed IRA account statements, avoid unsolicited investment offers, ask questions from the promoter, be mindful of “guaranteed” returns, and seek advice from a trained professional. 

About the law firm:

The law firm of Starr Austen & Miller LLC has over 90 years of experience in securities and class action litigation. The firm has earned a national reputation among litigators by handling cases ranging from personal injury caused by exposure to toxic chemicals to mass and class actions against national brokerage firms for securities fraud.

Legal Resources for Impacted Investors

If you have lost money in a fraudulent investment or scheme involving a self-directed IRA or a third-party custodian or trustee, or have information about one of these scams, you should contact www.starrausten.com to learn more about the self-directed IRAs and report your experiences.

Source/Contact:

Mario Massillamany

574-722-6676

mario@starrausten.com

Indiana State Fair Collapse Lawsuit Filed Against Sugarland

Date: November 22, 2011:

Today, Mario Massillamany, of the Indiana law firm Starr Austen & Miller, LLP, announced the filing of a complaint on behalf of 47 victims of the Indiana State Fair stage collapse, which occurred on August 13, 2011.

On August 13, 2011, a large crowd of Sugarland fans gathered at the Indiana State Fair Grounds expecting a great country music concert, and instead tragedy struck. During a severe thunderstorm with very strong winds the overhead stage rigging at the outdoor concert collapsed, killing 7 people and injuring over 40 others. Among those victims were Starr Austen & Miller clients Lisa Hite, and her granddaughter Kyla-Reed Brummet, who were both in the Sugar Pit at the concert. "The injuries I sustained have left me unable to provide for my family," Hite stated. "The financial and emotional strain this has caused has left a lasting impact on my family."

The lawsuit has named Sugarland Music, Inc. and other private entities responsible for the organizing, staging and presentation of the Sugarland concert as defendants. The allegations against the defendants include that they breached their duty of reasonable care to the victims of this collapse. Specifically, the complaint alleges that Sugarland and the other private entities owed a duty to provide a safe concert environment and use reasonable care in the operation, direction, management, set-up, control, and supervision of the concert.

According to the contract reached between Creative Artists Agency (Sugarland's agent) and the Indiana State Fair Committee, Sugarland was guaranteed:

• $300,500 to perform
• $30,000 for sound and lights
• $4,500 for catering
• 85% gross box office receipts over $470,000

The contract specifies that Sugarland has the final say on whether to cancel a concert due to weather.  "This unimaginable tragedy will forever live in the hearts and minds of the people of Indiana," said plaintiffs' counsel Mario Massillamany. "Unfortunately, this tragedy could have been prevented if the responsible parties had been concerned about the concertgoers that night."

A copy of the complaint can be seen here.  If you have information regarding the litigation, please call 574-722-6676. 

MDL Hearing Today on Indiana Golf Course Company’s Class Action Lawsuit Alleging DuPont's New Herbicide Imprelis Causing Death Of Trees Nationwide

-- Multidistrict Litigation (MDL) Hearing to Determine Where Nationwide Class Action Cases Will Be Transferred

Logansport, IN, September 27, 2011 – Today, Indiana law firm of Starr, Austen & Miller, LLP, along with the other plaintiff’s firms that have filed class action lawsuits against E.I. du Pont de Nemours & Company ("DuPont") COMMA, charging that DUPONT'S herbicide Imprelis is causing widespread death among trees and other non-targeted vegetation across the country, will argue in a multidistrict litigation hearing to a federal panel as to where all of the cases should be transferred.

Multidistrict litigation is a procedure utilized in the federal court system to transfer to one federal judge all pending civil cases of a similar type filed throughout the United States. The decision whether cases should be transferred is made by a panel of seven federal judges appointed by the Chief Justice of the United States Supreme Court.

Generally, the transferee court (the MDL court) will set standing orders or pretrial orders informing the lawyers involved of the ground rules, deadlines and procedures the court expects the litigants to follow. Steering committees may be appointed to manage the substance of the litigation and the discovery of facts.

“This is a very important step in the litigation process," stated plaintiffs' counsel Mario Massillamany.  "The panel’s determination as to transferee court will in essence dictate which law firms will control the litigation as it moves forward."

Plaintiff R.N. Thompson Golf, LLC, owns and manages several golf courses in the greater Indianapolis area, including the Winding Ridge Golf Course and the Ironwood Gold Course. 

The lawsuit, entitled Shomo v. E.I. du Pont de Nemours & Company, was filed in federal court in Delaware, where DuPont has its headquarters.  The proposed class consists of all persons and entities who own property on which Imprelis was applied, own trees or other vegetation whose roots extend under property on which Imprelis was applied, or who own property to which Imprelis migrated between October 4, 2010, and the date of trial. 

Legal Resources for Impacted Property Owners

If you have suffered damage to trees on your property after the spraying of Imprelis, please visit http://www.starrausten.com/imprelis-class-action/   to learn more about the Imprelis class action lawsuit and report your experiences.

Trademark Notice

Imprelis is a registered trademark of DuPont De Nemours & Company and used solely for product identification and informational purposes. Plaintiffs' counsel are in no way affiliated with DuPont.

Source/Contact

Mario Massillamany

Starr Austen & Miller, LLP

201 South Third Street

Logansport, Indiana 46947

Telephone: (574) 722-6676

Facsimile: (574) 753-3299

Golf course manager suing DuPont over alleged herbicide damage | 2011-07-19 | Indianapolis Business Journal | IBJ.com

Golf course manager suing DuPont over alleged herbicide damage | 2011-07-19 | Indianapolis Business Journal | IBJ.com

Hundreds of thousands of spruce and pine trees in Indiana and even more across the country have been dying unexpectedly, and a nationwide class action lawsuit alleges DuPont did not properly test their new herbicide Imprelis and did not warn applicators of the potential side effects when applying this new herbicide. Starr Austen & Miller LLP on behalf of the damaged victims filed the class action lawsuit against DuPont on Monday. DuPont's new wonder herbicide Imprelis was advertised as being environmentally friendly. As reports are continuing to come in, damages could potentially be in the hundreds of millions. Victims are asked to go to www.starrausten.com and follow the protocol in collecting a soil sample to preserve the evidence of Imprelis damage. If you have a complaint and need more information, please call 574-722-6676 and ask for Mario Massillamany, attorney at Starr Austen & Miller, LLP.