Aspirity’s Principal, Former Iowa State Wrestling Champ Tim Krieger, Made Millions in Commodities Trading but Investors in His Aspirity Energy Could be Out up to $30 Million After the Minnesota-based Firm Filed for Bankruptcy
Have you or a loved one invested money with Tim Krieger’s Aspirity Holdings? The Peiffer Rosca Wolf investor right lawyers are investigating Aspirity Holdings to determine whether misconduct occurred, following Aspirity’s bankruptcy.
Tim Krieger won national championships on the wrestling mats at Iowa State in the 1980’s and then blossomed in the competitive world of commodities trading. Krieger reportedly started as a stockbroker back in 1995, and made loads of money by wagering in the unknown world of electricity futures.
Krieger, however, has accumulated 20 years in the trading business, but now has hundreds of investors who may lose millions in unsecured notes that were used to finance his company’s operations, according to a recent report from the Star Tribune currently under review by currently under review by attorneys Alan Rosca and James Booker and available here.
Aspirity Holdings investors who believe they may have lost money invested in that company 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 Aspirity Holdings to determine whether any misconduct occurred, in the wake of that company’s bankruptcy. No allegations of misconduct are being made by the law firm at this time.
Krieger went on to found his own company which grew quickly and expanded into new cities, and even Canada, but signs of trouble reportedly arose in 2011 when ex-employees made allegations that he took salary payments of $18 million before giving many employees the sack and closing the doors not the firm, according to the aforementioned report.
One former employee also made statements to the SEC that Krieger had allegedly orchestrated acts of fraud when he moved millions of dollars in assets out of the business and thus made it impossible to meet its financial obligations, the Star Tribune reports states, while Krieger himself recently indicated that he is looking at “financial ruin” and that the SEC will be involved in this matter.
Krieger Has Allegedly Been Forced to Market up to $50 Million in Unsecured Subordinated Notes, or a Diminutive Form of So-called Junk Bonds
Aspirity’s Tim Krieger has reportedly lost the support of his main financial backer but still purportedly has to pay back over $30 million to that individual and his partners, a move that nearly destroyed Twin Cities Power, as Aspirity Energy was called before 2015, according to the aforementioned report from the Star Tribune being analyzed by attorneys Alan Rosca and James Booker.
The move purportedly prompted Krieger to shut down operations in Canada, a decision 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 took to the internet 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.
Tim Krieger, in 2015, reportedly 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 warning of “going concern”, 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 or fraud and are currently investigating Aspirity to determine whether any misconduct occurred. They are in touch with Aspirity investors. 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 invested in Aspirity as a result of potential misconduct 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/2fQ1QCo
via Securitieslitigatos.com
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