If you have invested with Dennis K. Karasik or in Diversified Energy Group Bonds, you may be able to recover your loses through FINRA arbitration or securities litigation.
According to a recent SEC administrative proceeding, between 2006 and 2012, Dennis Karasik (a stockbroker residing in and around Baltimore, Maryland), allegedly raised at least $17.4 million from approximately 440 investors nationwide for a company named for Diversified Energy Group through a series of unregistered securities offerings. Dennis Karasik allegedly represented to investors that it was primarily engaged in the business of buying and selling fractional interests in oil and gas wells, cattle and a hydrogen device that purported to increase gas mileage on vehicles, trade commodities contracts and invest in real estate. According to the SEC, these offerings were made with certain material misrepresentations and omissions about the the financial performance of the company. Dennis Karasik was separately barred by FINRA for his role in the sales of Diversified Energy Group bonds to investors, which raised at least $3.2 million from the sale of these securities to investors. This type of misconduct is typically referred to as "selling away".
Brokerage firms like the one that Dennis Karasik was registered with have a regulatory duty to strictly supervise stockbrokers like David Karasik to ensure that they follow FINRA rules and only sell securities approved by the firm. In cases where a stockbroker sells securities not-approved by the firm, the brokerage firm itself may be held liable for “selling away” if investors suffer losses in unapproved investments. As a result, investors who lost money with Dennis Karasik may be able to recover their investment losses against Pruco Securities through FINRA arbitration..
If you are an investor that has suffered losses investing with Dennis Karasik oor investing in Diversified Energy Group bonds, you may be able to recover your losses through FINRA arbitration or securities litigation. Please call Kons Law Firm at (860) 920-5181 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.investmentfraudattorneys.com.
