The Cobalt investment litigation is fascinating. A rundown is here, in PDF format.
The Commission’s complaint, filed on March 27, alleges that since approximately July 2004, the Company has raised over $16 million from at least 150 investors on the basis of false and misleading offering and marketing materials and through boiler room sale…
The NY Attorney Malpractice blog is on the case:
The Complaint alleges that the Individual Defendants engaged in a massive fraud on the investing public by setting up the Cobalt entities, and persuading members of the public to invest millions of dollars in these same entities through various misrepresentations and cold-calling schemes. Compl. §§4, 51-87. The Individual Defendants then allegedly misappropriated the majority of the funds invested in the Cobalt entities for their own personal use. Compl. §§83-85. The Complaint alleges that the Law Firm Defendants assisted the Individual Defendants in committing this investor fraud, and in subsequently looting the Cobalt entities of corporate assets.
A prominent Long Island, N.Y., law firm is named as a defendant in a federal class action suit brought by investors who were allegedly bilked out of $20 million by a “boiler room” Ponzi scheme masterminded by two convicted felons.
