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Former Nebraska Brokers will be tried on Securities Fraud Charges
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(March 3, 2010 - Wednesday) - Rebecca Engle and Brian Schuster each face eight felony counts of securities fraud. According to the AP most of the investors involved in the cases were either retired or nearing retirement age and were looking for stable investments. The defendants allegedly invested their clients’ money in extremely high risk enterprises without fully explaining the risks involved.
Attorneys for Engle and Schuster argued that the investors were aware of the risks and had acknowledged the risks in writing; however, prosecutors maintain that many of the clients told investigators that they were never fully informed about the risks.
Engle and Schuster sold securities for American Capital Corp. and Royal Palm. Court documents claim that defendants described the high-risk securities with terms like “can’t-miss deal” or “mini Berkshire Hathaways.”
PrimEdge Inc. later bought American Capital and Royal Palm, and Schuster became the president and chief executive of PrimEdge. He is now a law student in South Dakota, and PrimEdge is listed as an inactive corporation by the Florida Secretary of State's office.
Engle lost her license to deal securities in February of 2008 as part of an agreement with regulators and filed for Chapter 11 bankruptcy protection later that year.
The investment fraud attorneys at the Hayes Law Firm fight to recover losses for their clients. Many investment opportunities have risks, some greater than others; however, investors have a right to be fully informed of the risks involved in an investment. If you have lost your nest egg due to hidden investment risks or broker fraud, our fraud attorneys can help. Contact the Hayes Law firm today for free consultation with an experienced investment fraud attorney.
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