Fort Lauderdale, Florida (PRWEB) June 6, 2008
A securities fraud class action was filed in the United States District Court for the Southern District of Florida against MRT, LLC, MRT Holdings LLC, James Clements and Zeina Smidi, Case No. 07-61438. The class action was filed on behalf of all persons who invested in MRT from March 1, 2006 through the filing of the complaint on Oct. 5, 2007, inclusive (the "Class Period").
The Complaint charges beginning in or about March, 2006 through the present, MRT, under Clements's direction, offered promissory note investments to the general public in a Ponzi Scheme. It is alleged the investments were offered for the purpose of allowing MRT to trade in foreign currencies, purportedly through unidentified Swiss banks. In return for this investment capital, MRT and the individual defendants promised investors fixed rates of return as high as over one hundred percent (100%) annually, payable in monthly interest payments.
The Complaint also alleges that MRT solicited "loans" or "investments" from unsuspecting investors for the purported purpose of trading "FOREX" futures and options. In exchange for this investment, MRT promised and, in some cases, has paid rates of interest from about twelve percent annually (12%) to as high as over eleven percent (11%) a month. The complaint also alleged that MRT's investment program operated as a Ponzi scheme, i.e., a scheme whereby returns are paid to investors from monies contributed by later investors. The complaint charges the Defendants with selling investments that constitute investment contracts, and therefore, qualify as securities under Section 2(a)(1) of The Securities Act of 1933, 15 U.S.C. § 77b(1)(1), and Section 3(a)(10) of The Securities Exchange Act of 1934, 15 U.S.C. § 78(a)(10). The complaint charges that the defendants sold unregistered securities in violation of Section 5(a) and also violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
At this time, it appears that MRT is no longer operating, and has stopped paying all investors.
The plaintiffs are represented by the Fort Lauderdale law firm of Sonn & Erez PLC, which has experience representing defrauded investors in class actions, and in arbitration. Sonn & Erez PLC has recovered millions of dollars for victims of investment fraud.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the court by August 5, 2008. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Jeffrey R. Sonn, Esq.
Sonn & Erez PLC
Broward Financial Center, Suite 1600
Fort Lauderdale, FL 33394