Global Credit Recovery Losses with Former Park Avenue Securities Broker John Howley?
Posted on Monday, August 19th, 2019 at 8:05 pm
Erez Law is currently investigating former Park Avenue Securities broker John Howley (CRD# 2229244) regarding Global Credit Recovery losses. Howley has been registered with Park Avenue Securities in Rumson, New Jersey from 1999 to 2018, when he was terminated regarding, “Violated Firm’s rules by (i) failing to disclose private securities transactions and (ii) referring of clients to outside investments (i.e. not offered by Firm).”
In September 2018, the Securities and Exchange Commission (SEC) filed a complaint and “obtained a court order halting an ongoing Ponzi-like scheme that raised more than $345 million from over 230 investors across the U.S. he SEC also obtained an emergency asset freeze and the appointment of a receiver.” The complaint alleges that “Kevin B. Merrill, Jay B. Ledford and Cameron Jezierski attracted investors to their scheme by promising significant profits from the purchase and resale of consumer debt portfolios.” None of these brokers have records available through BrokerCheck, and thus are not registered with FINRA, the Securities and Exchange Commission (SEC), or a state securities regulator.
According to the SEC, “Touting their purported expertise in collecting on and reselling consumer debt, Merrill and Ledford, through a web of entities they owned and/or controlled, including Defendants Global Credit Recovery, LLC; Delmarva Capital, LLC; Rhino Capital Holdings, LLC; Rhino Capital Group, LLC; DeVille Asset Management LTD; and Riverwalk Financial Corporation, offered and sold securities to investors with the promise of significant profits. Defendants used these and a total of approximately 30 interrelated corporate entities and over 55 bank accounts to move investor money, deceive investors, and continue their Ponzi-like scheme that has survived only with the influx of greater and greater sums of cash.”
The SEC alleges that Merrill, Ledford and Jezierski were “using a web of lies, fabricated documents, and forged signatures in an elaborate scheme to entice investors and perpetuate the fraud. Rather than direct investor funds to the acquisition and servicing of debt portfolios as promised, the defendants allegedly used the funds to make Ponzi-like payments to earlier investors. The SEC also alleges that Merrill and Ledford stole at least $85 million of the investor funds to maintain lavish lifestyles, spending millions of dollars on luxury items, including $10.2 million on at least 25 high-end cars, $330,000 for a 7-carat diamond ring, $168,000 for a 23-carat diamond bracelet, millions of dollars on luxury homes, and $100,000 to a private fitness club.”
The SEC’s complaint charged Merrill, Ledford, and Jezierski, as well as Global Credit Recovery, LLC, Delmarva Capital, LLC, Rhino Capital Holdings, LLC, Rhino Capital Group, LLC, DeVille Asset Management LTD, and Riverwalk Financial Corporation, with violations of the antifraud provisions of the federal securities laws. According to the SEC announcement, the court granted the SEC’s request for an asset freeze, temporary restraining order, and the appointment of a receiver. The SEC seeks disgorgement of allegedly ill-gotten gains and prejudgment interest, and financial penalties against the defendants.
Howley has been the subject of seven customer complaints between 2006 and 2019, according to his CRD report. Recent complaints are regarding:
May 2019. “The Customer alleges a $250,000 loss of her investment in Global Credit Recovery, an alleged fraudulent investment scheme, recommended by the RR. The customer is also seeking reimbursement of premiums for one of her whole life insurance policies sold to her by the RR because she can no longer afford the policy after the investment loss.” The customer is seeking $351,000 in damages and the case is currently pending.
March 2019. “Plaintiff’s allege a $1 million loss of their investment in Global Credit Recovery, an alleged fraudulent investment scheme, recommended by the RR.” The customer is seeking $1 million in damages and the case is currently pending.
March 2019. “Claimant alleges he lost all of his retirement savings as a result of the RR’s recommendation to invest in a private equity venture, Global Credit Recovery, an alleged fraudulent investment scheme.” The customer is seeking $288,284 in damages and the case is currently pending.
January 2019. “The Customer alleges a $500,000 loss of their investment in Global Credit Recovery, an alleged fraudulent investment scheme, recommended by the RR as a way to afford a fixed life insurance policy sold to the customer. The Customer also claims the sale by the RR of the fixed life insurance policy was excessive and requested a $150,000 refund of their policy premiums.” The customer is seeking $650,000 in damages and the case is currently pending.
November 2018. “The Customers allege a $1 million loss of their investment in Global Credit Recovery, an alleged fraudulent investment scheme, recommended by the RR. The Customers requested a refund of their whole life insurance policy premiums sold to them by the RR due to the fact they can no longer afford the policies after the investment loss.” The customer is seeking $139,812 in damages and the case is currently pending.
November 2018. “Claimant alleges the RR violated his suitability obligation and was negligent in recommending a $2 million aggregate investment in a private equity venture, Global Credit Recovery, an alleged fraudulent investment scheme.” The customer is seeking $2.5 million in damages and the case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Park Avenue Securities may be liable for investment or other losses suffered by Howley’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.