Investors in Tim Krieger’s Aspirity Energy Could be out up to $30 Million Following the Golden Valley-Based Firm’s Bankruptcy Filing; Krieger Won National Championships as a Star Wrestler for Iowa State and Went on to Make Millions in Commodities Trading
Have you or a loved one lost money investing with Tim Krieger’s Aspirity Energy?
Tim Krieger was a star wrestler at Iowa State in the 1980’s and soon turned to commodities trading to fill the void left by no longer grappling on the mats.
Krieger started as a stockbroker in 1995 and after 20 years in trading, now has more than 700 investors who may lose approximately $30 million in unsecured loans that were used to fund his operations, according to a breaking report from the Star Tribune currently under review by attorneys Alan Rosca and James Booker and available here.
Investors who believe they may have lost money in activity related to Tim Krieger’s commodities program are encouraged to contact attorneys Alan Rosca or James Booker with any useful information or for a free, no-obligation discussion about their options.
The Peiffer Rosca Wolf securities lawyers are currently investigating Tim Krieger’s commodities program, Aspirity, and are in touch with investors.
Krieger’s company grew quickly and expanded into many cities, and even Canada, but trouble reportedly arose in 2011 when former employees allege that he took $18 million out for his own salary before firing many employees and shutting the firm’s doors, according to the aforementioned report.
Krieger has even allegedly gone so far as to tell a court the he faces “financial ruin”, and one former employee also told the SEC that Krieger allegedly improperly moved millions of dollars in assets out of the business and thus rendered it unable to meet its financial obligations, the reports states.
Krieger Purportedly Lost His Main Backer and Was Allegedly Forced to Market up to $50 Million in Unsecured Subordinated Notes, or a Small-time Form of So-called Junk Bonds
Tim Krieger had to pay back over $30 million to his main backer, a move that nearly decimated Twin Cities Power, as Aspirity Energy was known before 2015, according to the aforementioned report from the Star Tribune being analyzed by attorneys Alan Rosca and James Booker.
Krieger then shut down operations in Canada, which delivered $15 million to $20 million in capital but also took down Twin Cities Power’s most profitable desk, the report claims.
Krieger then allegedly went online to market up to $50 million in unsecured subordinated notes, a type of so-called junk bond, the report states. Said buyers were purportedly investors on the lookout for high yields of up to 14 percent, according to the report.
Then, in 2015, with Twin Cities Power allegedly nosediving, Twin Cities Power became Aspirity, and the majority of its remaining assets (including the core trading business were allegedly transferred to Krieger’s private company which is now known as Diversified Trading, the report states.
The problem, however, was that the new company’s business was selling retail electricity to homeowners in deregulated states which was allegedly not very profitable, records state.
In sum, in 2015 Krieger allegedly personally took in over $5 million, mostly through distributions of the firm’s plummeting cash reserves whilst Aspirity took losses of $4.7 million, the report notes. By 2016, Aspirity allegedly lost $12.9 million on revenue of $13.5 million, and its auditors issued a “going concern” warning, the report notes.
Securities Lawyers Investigating
The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of investment-related misconduct and are currently investigating Aspirity. They are in touch with Aspirity investors. They typically 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 invested in Aspirity 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/2fC39of
via Securitieslitigatos.com
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