New York, NY (PRWEB) April 30, 2013
Zamansky & Associates LLC is investigating the valuation firm Robert A. Stanger & Co. Inc. for its possible role in the violations by J.C. Reed & Company Inc. (“J.C. Reed”) and Barron A. Mathis (“Mathis”) of the anti-fraud provisions of various securities laws.
On March 14, 2013, the United States Securities and Exchange Commission (“SEC”) issued a release announcing that the Judge entered final judgments against defendants J.C. Reed and Mathis, to which they consented, holding J.C. Reed liable for $14 million in disgorgement and interest, and $15.9 million against Mathis. The final judgment against Mathis, to which he consented, restrained and enjoined him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, known as the anti-fraud provisions. The case is SEC v. J.C. Reed & Company Inc., et al., U.S. District Court, Middle District of Tennessee, No. 08-cv-1112.
The SEC’s Complaint, filed in the case on November 18, 2008, alleged that, at various times from 2005 through September 2008, defendants J.C. Reed and Mathis facilitated the offer and sale of more than $11 million of J.C. Reed stock in unregistered transactions to over 100 investors in several states. The SEC Complaint also alleges that J.C. Reed provided inflated stock values which were allegedly reported to Robert A. Stanger & Co. Inc., an independent valuation firm, which then allegedly reported the valuations to the reporting firm. The false values were reported, the SEC Complaint alleges, to investors who were deceived into believing that the J.C. Reed stock had value.
Zamansky is investigating the possible role of Robert A. Stanger & Co. Inc. in the securities law violations by J.C. Reed. The SEC did not name Robert A. Stanger & Co. Inc. as a defendant. According to its website, Robert A. Stanger & Co Inc. is a national independent securities valuation firm.
According to Jake Zamansky, "any firm or person who provides accounting, valuation, custody, clearing and other services which assist or enable fraud or violations of securities laws, should he held accountable to the victims."
What J.C. Reed Investors Can Do
If you would were an investor in J.C. Reed, or a victim of its fraud, and wish to discuss your legal rights, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.
About Zamansky & Associates LLC
Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud and financial services arbitration and class action litigation. We represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
To learn more about Zamansky, please visit our website, http://www.zamansky.com.
Zamansky & Associates, LLC
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Jake Zamansky, 212-742-1414