Nicolaas Petrus Pronk and Noble Financial Allegedly Defrauded Seven Customers by Recommending and Selling Almost a Million Shares of AdCare Health Systems, Inc. (ADK) without Disclosing Noble’s Conflicts of Interest
Nicolaas Pronk and Noble Financial allegedly defrauded seven customers by recommending and selling nearly a million shares of AdCare Health Systems (ticker symbol: ADK) to them without purportedly disclosing Noble’s multiple and material conflicts of interest, according to a Complaint from FINRA’s Department of Enforcement currently under review by attorneys Alan Rosca and James Booker.
Nicolaas Pronk and Noble Financial, from April 2011 through September 2011, allegedly promoted and recommended ADK to prospective investors in order to profit from Noble’s undisclosed investment banking relationships with AdCare, the aforementioned Complaint reports.
Nicolaas Pronk and Noble Financial’s alleged promotion also included their undisclosed arbitrage of AdCare securities which also purportedly instilled a financial incentive to recommend ADK to customers, the Complaint also notes.
What is more, Nicolaas Pronk and Noble Financial, from May 31, 2011 through September 27, 2011, purportedly helping its sales campaign to sell ADK, when Pronk and three other brokers allegedly sold an aggregate of 863,930 shares of ADK to seven customers for a total of $5,034,997.44, the Complaint states.
Furthermore, Pronk also allegedly kept full control over all Noble Financial activities including proprietary trading, sales, investment banking, and the decision to initiate and prioritize the promotion and sale of ADK, the Complaint also reports.
The Peiffer Rosca Wolf securities lawyers are investigating Nicolaas Pronk and Noble Financial’s alleged investment fraud.
Nicolaas Petrus Pronk and Noble Financial Allegedly Made Aggressive Promotions and Solicited Purchases of ADK by Issuing Research through Noble’s Research Department
Nicolaas Pronk and Noble Financial allegedly made aggressive promotions and solicited purchases of ADK by issuing research through Noble’s Research Department, according to a Complaint from FINRA’s Department of Enforcement presently being examined by attorneys Alan Rosca and James Booker.
Nicolaas Pronk and Noble Financial allegedly also conducted non-deal so-called road shows through Noble’s Investment Banking and Institutional Sales and Trading Departments, the aforementioned Complaint reports.
What is more, Nicolaas Pronk and Noble Financial allegedly made contact with prospective investors which were primarily institutions, the Complaint also notes.
Said contact was allegedly made through registered representatives in Noble’s Institutional Sales and Trading Department, the Complaint states.
Nicolaas Pronk and Noble Financial also allegedly provided the aforementioned registered reps with misleading sales script to use when soliciting prospective investors in ADK, the Complaint further alleges.
The Complaint also alleges that Nicolaas Pronk and Noble Financial purportedly knowingly or recklessly did not tell seven customers who purchased ADK regarding four material conflicts of interest.
The aforementioned material conflicts of interest including that AdCare allegedly paid Noble $6,000 a month to provide advisory services to AdCare pursuant to an Advisory Agreement entered into with AdCare in February 2011, according to the aforementioned Complaint from FINRA’s Department of Enforcement currently under review by attorneys Alan Rosca and James Booker.
Secondly, Noble also allegedly made agreements to produce capital for AdCare in exchange for a seven percent cash fee related to the total gross proceeds generated from the exercise of both publicly traded and privately-held AdCare warrants (ADK.WS) which was related to an addition to the Advisory Agreement made in April 2011, the Complaint notes.
Third, Noble allegedly promised the aforementioned brokers incredible incentive compensations in addition to regular commissions, in order to promote and solicit sales of ADK, the Complaint also states.
Furthermore, Nicolaas Pronk and Noble Financial allegedly took part in a risky arbitrage trading strategy in ADK and publicly-traded AdCare warrants, the Complaint further notes.
Nicolaas Pronk and Noble Financial, in connection to the aforementioned arbitrage, and through Noble’s proprietary accounts, allegedly purchased and held ADK.WS and also allegedly sold short ADK to its customers, the Complaint also reports.
Nicolaas Pronk and Noble Financial, based on the foregoing alleged fraudulent conduct, violated Sections of the Securities Exchange Act of 1934 and also allegedly violated FINRA Rules, the Complaint notes.
Later, Noble exercised the warrants it held long and, using the common shares it received through the exercises, covered its short position in ADK. 7. Respondents engaged in the arbitrage to profit from the spread between the cost of buying and exercising ADK.WS and the proceeds generated by short-selling ADK, and to generate Noble’s seven percent fee under the Warrant Agreement.
Securities Lawyers Investigating
The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of investment fraud and are currently investigating Nicolaas Pronk and Noble Financial’s investment fraud. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of Nicolaas Pronk and Noble Financial’s investment fraud may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.
from Investment Fraud Lawyers | Investor Loss Recovery http://ift.tt/2j5kGFQ
via Securitieslitigatos.com
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