On September 30, 2013, FINRA Issued a Cease and Desist Order Against John Carris Investments and CEO George Carris for allegedly engaging in Fraud and Stock Manipulation.
In particular, FINRA’s Cease-and-Desist Order against John Carris Investments, LLC (JCI) and its CEO, George Carris sought to to immediately halt solicitations of its customers to purchase Fibrocell Science, Inc. stock without making proper disclosures. According to FINRA, during May 2013, John Carris Investments fraudulently solicited its customers to buy Fibrocell Science stock, without disclosing that during the same time period, Carris and another firm principal were selling their shares in Fibrocell Stock.
FINRA also issued an amended complaint against John Carris Investments, George Carris, and five other firm principals alleging additional fraudulent activity and securities violations. In the complaint, FINRA alleges that while John Carris Investments acted as a placement agent for Fibrocell Science, John Carris Investments and George Carris allegedly artificially inflated the price of Fibrocell stock by engaging in pre-arranged trading and by making unauthorized purchases of Fibrocell stock in customers’ accounts.
FINRA also alleges that John Carris Investments and George Carris fraudulently sold stock and notes in its parent company, Invictus Capital, Inc., by not disclosing its poor financial condition. In the complaint, FINRA states that John Carris Investments and George Carris misled Invictus Capital investors by paying dividends to Invictus’ early investors with funds that were, in fact, generated by new sales of Invictus Capital securities. John Carris Investments and George Carris allegedly did not have any reasonable grounds to expect economic gains for Invictus investors. According to FINRA, as of March 2013, Invictus Capital had defaulted on $2 million of Invictus notes sold to earlier John Carris Investments customers, did not have funds to repay them, and has stated that it may be required to use proceeds from its ongoing offering to make repayments. John Carris Investments allegedly continues to solicit new investments in Invictus Capital – an investment that FINRA alleges is wholly unsuitable.
In addition, FINRA alleges that John Carris Investments issued false documentation that failed to reflect the firm’s payments for George Carris’ personal expenses (such as tattoos, pet care and a motorcycle), and allegedly failed to remit hundreds of thousands of dollars in employee payroll taxes to the United States Treasury.
If you are an investor that suffered losses purchasing or selling Fibrocell Science, Inc. stock, investing your money through John Carris Investments and/or George Carris, or investing in Invictus Capital notes, you may be able to recover your losses through FINRA arbitration or securities litigation. Please contact Kons Law Firm at (312) 757-2272 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
Kons Law Firm represents investors nationwide in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and FINRA arbitration practice, please visit www.investmentlossattorney.com.