According to the Securities and Exchange Commission, Interinvest Corp., a Massachusetts investment adviser, bilked investors of over $12 million, perhaps up to $17 million, when its founder invested their money in Canadian penny stock companies in which he had undisclosed interests. Hans Peter Black, who is a resident of Canada, calls the charges against him “outrageous.”
The SEC claims that Interinvest and Black funneled over $17 million of client funds to four penny stock companies on whose boards he sits. Another entity that he controls received about $1.7 million in Canadian dollars. Black’s relationships to all of these entities were purportedly never disclosed to clients or stated in the firm’s Form ADV. This is the form that investment advisers use to register with the SEC and state securities regulators.
In February, the regulator sent a subpoena to Interinvest requesting documentation of its bank accounts, compliance policies, and trades. The SEC said that Black did not comply with its request. Black also is accused of misrepresenting the nature of the penny stock company’s investments, disregarding client instructions, and purposely deviating from the conservative investment strategy his firm promoted.
Now, the Commission wants the U.S. District Court for the District of Massachusetts to freeze Interinvest’s assets and prevent Black from having any control over clients’ assets.
Earlier this year, regulators in New Hampshire filed a securities fraud case against Interinvest and Black. The claim is on behalf of three N.H. investors, including a church. The state regulator wants the Boston investment adviser to pay the investors over $430,000 plus $300,000 in administrative fines.
Our securities fraud lawyers represent investors in Massachusetts, New Hampshire, and other US states to help them recover their investment losses. The SSEK Partners Group would like to offer you a complimentary case assessment.
SEC alleges Boston adviser defrauded clients and lost over $12 million, InvestmentNews, June 17, 2015
State: North Country church was victim of securities fraud, Union Leader, March 10, 2015