Investors who purchased “preferred units” of The Scuderi Group, LLC (or the Scuderi Group, Inc.) through a financial advisor, finder, or other intermediary may be able to pursue their claims for this investment through securities litigation or arbitration.
According to a recent SEC action, the Scuderi Group allegedly funded its operations by raising $80 million from individual investors and investment clubs from 2002 to 2012. The Scuderi Group allegedly raised these funds through at least six offerings in which it sold “preferred units” to at least 415 investors. According to the SEC, these securities offerings did not qualify for any of the exemptions from the Securities Act’s registration requirement. Moreover, the SEC claimed that the company’s private placement memorandum informed investors that Scuderi Group intended to use the proceeds from its offerings for “general corporate purposes, including working capital” when in fact, the company was making significant payments to Salvatore Scuderi family members for non-corporate purposes. According to the SEC, between 2008 and 2011, a period when the Scuderi Group sold more than $75 million in securities despite not obtaining any revenue, Salvatore Scuderi allegedly authorized more than $3.2 million in the Scuderi Group spending on such non-corporate purposes.
In connection with these offerings, the Scuderi Group allegedly disseminated more than 3,000 private placement memorandums to potential investors, directly and through third parties. The Scuderi Group found these potential investors by, among other things, conducting hundreds of roadshows across the U.S.; hiring a registered broker-dealer to find investors; and paying numerous intermediaries to encourage people to attend meetings that the Scuderi Group arranged for potential investors.
If you are an investor that invested in The Scuderi Group, LLC (or the Scuderi Group, Inc.) or purchased preferred units in the Scuderi Group through an intermediary, finder, stockbroker or financial advisor, you may be able to pursue your legal claims through securities arbitration or securities litigation. Please contact the Firm for a FREE, NO OBLIGATION evaluation of your case.