DONATE NOW! So very easy. Investors should take heed of these risk avoidance tactics. Looking to join Equity Trust Company?View our open job postings. After the Ohio appellate court reversed the grant of summary judgment to Equity Trust, Hampton filed a motion to lift the stay in the Texas case. Date report landscape. Cf. If investors engage in proper due diligence for each investment, risks such as fraud are much easier to spot. Applying the ordinary rule, then, Equity Trust Company is a citizen of South Dakota and Ohio. Association. Among the allegations against Equity Trust Company were that they lent an air of legitimacy to ponzi schemes and other scams, and knew or should have known that their company was being used by fraudsters to fleece unsuspecting retirees. .". 2016) (citing Mirant to support the proposition that "[a] statement by a party that it has a right to arbitration in pleadings or motions is not enough to defeat a claim of waiver" and declining to allow defendants "to gain an unfair advantage by virtue of their litigation conduct"). Hampton argues that Equity Trust waived the application of the forum-selection clause. After two years of litigating against Hampton on the merits in Texas, and with an impending trial in Texas state court, Equity Trust moved in the federal court to enjoin the Texas proceedings. Does the deal sound just too good to be true? The beverage giant recently agreed to settle a class-action lawsuit over claims the company made that its K-Cups were recyclable. According to the SEC, Ephren Taylor targeted churchgoers while running the Ponzi scheme with Randy Poulson, who has been indicted in federal district court for an alleged fraudulent offering in New Jersey. The average employee at Equity Trust makes . A "wave of blowups in do-it-yourself individual retirement accounts" has prompted some investors to go after firms that handle the paperwork, including one based in Elyria, The Wall Street Journal reports Equity Trust Co. of Elyria and Entrust Group Inc. in Oakland, Calif., were sued this week in U.S. District Court in Los Angeles by three investors "who allege that the companies knew . Both Taylor and Poulson were convicted of mail and wire fraud. This field is for validation purposes and should be left unchanged. Explore Investment Resources I sent the info to them and the buyers attorney. On June 27, 2016, SEC Administrative Law Judge Carol Fox Foelak dismissed the Division of Enforcements charges against IRA custodian Equity Trust Company in connection with the companys processing of investments marketed by two convicted fraudsters. Id. <>stream Who pays attorney fees in trust litigation? Diversify and protect your 401k, IRA, and retirement savings accounts, Get The FREE 2022 Gold IRA Kit Americans Are Using to Protect Their Retirement Savings. In a separate press release, Equity Trust Company denied all the charges alleged by the SEC. Any time there is a fraud or alleged fraud, it makes all firms in the same industry guilty by association in the public eye. I was recently made aware of a class action lawsuit against Equity Trust (see linkhere) to which one of the more disturbing claims is, that if found guilty they would essentially be considered a NON-qualified retirement vehicle and potentially any investments or rollovers into ETC could be then considered a tax-able event. Take caution with any investments offered from overseas or international locations or schemes to hide funds in tax shelters, trusts, or offshore accounts. As part of the settlement, Keurig has agreed to pay $10 million to . Rather, Equity Trust simply contended that Hampton's claims should be dismissed because they were barred by the final judgment of an Ohio court of common pleas, which granted summary judgment to Equity Trust on Hampton's claims. Co., 148 S.W.3d 109, 120-21 (Tex. Under the second approach, "the party to the forum selection clause waives its right if it (1) substantially invokes the judicial process in derogation of the forum selection clause and (2) thereby causes detriment or prejudice to the other party." with offices in Melbourne, Adelaide, Sydney, Brisbane, Perth, London and Dublin. Legitimate investment promoters understand getting a second opinion. Looking for an investment?Visit the Investment District. Update on lawsuit against Equity Trust Company. Can you explain, in your own words, what the investment is and how it works? Case Summary. more attainable than ever. Private Equity Private Debt Structured Settlements IRAs? Investment District provides an opportunity to browse and choose from high-end platforms and providers in the cryptocurrency, lending, precious metals, private equity/crowdfunding, and turnkey real estate asset classes. no. Warning: Avoid scams! Historically, there were courts of law and courts of equity, and each handled different types of . In Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. Laura Hampton and other investors originally sued Robert Langguth, Claudia Lee Langguth, and Equity Trust Company in federal court, alleging violations of the Texas Securities Act. Accordingly, Equity Trust substantially invoked the judicial process. It appears to be a company that assists individuals with self directed IRAs as its bread and butter. Still not convinced? By choosing Equity Trust to manage your wealth, you get far more than just percentage-based returns - you get personal service and investment advice based on your unique needs. In June 2015, Equity Trust filed amended responses to requests for disclosure in which it asserted the same. ETC Brokerage Services provides access to brokerage and investment products which ARE NOT FDIC insured. They should be focused on the investment itself rather than the promoter. 08/04/2022 EQUITY TRUST COMPANY CUSTODIAN FBO 200318641 The IRA filed a foreclosure complaint against HOPE HUDDLESTON. Taylor issued promissory notes in his company, City Capital Corporation. Were here to answer any questions, help guide you through the process, and provide more detailed information and education specific to your journey. Here are some ways investors can reduce their exposure to a fraudulent investment. A review of the record belies this assertion. Once the funds are in the account the investor directs the IRA custodian to purchase an investment, which is usually memorialized by a promissory note, a contract or shares of stock. It should be a requirement that custodians, administrators, and facilitators clearly spell out that they are not providing financial advice, and that investors should consult their own licensed financial advisors. However, Equity Trust appears not to have pursued a hearing on its special exceptions, and apparently no hearing was ever set. Brokerage Services Available Through ETC Brokerage Services, Member SIPC, and FINRA. What Schemes and Scams Should Investors Look Out For? Already partnered with us?Visit our Client Resources. 2016) (unpublished). UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT. In addition to the significant delay, allowing Equity Trust to invoke the forum-selection clause at the eleventh hourafter Hampton has survived summary judgment and is ready for a jury trialwould obviously damage Hampton's legal position. While many efforts have been made, it is obvious from this recent allegation that more needs to be done. In the interim, Equity Trust resolved the claims of all plaintiffs in the Texas case except Hampton's individual claims. Copyright 2021 Israels Neuman, PLC. Investors can review their transaction histories and download print statements or tax forms. (quoting Williams v. Cigna Fin. On June 16th the SEC announced charges against Equity Trust Company, a retirement plan custodian in connection with a ponzi scheme. The administration fees of Equity Trust Company range from $225 to $2,250, depending on the number of investments or size of the self-directed account. Hampton opened a self-directed IRA with Equity Trust and signed an IRA application, thus agreeing to be bound by the terms and conditions of a Custodial Account Agreement. In this summary-judgment motion, Equity Trust did not specifically discuss the forum-selection clause, nor did it argue that the Texas state court should defer to the federal court or send the case to Ohio. 28 U.S.C. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Impending Investigation: EQUITY TRUST COMPANY, EPHREN TAYLOR, and RANDY POULSON. A day after Hampton sued Equity Trust in Ohio, the eight non-accountholders (those who had not executed agreements with Equity Trust) filed a lawsuit in Travis County, Texas, against Equity Trust, the Langguths, and another entity, alleging violations of the Texas Securities Act and mostly fraud-related common law claims nearly identical to the claims filed in Ohio. Home | Resources for Individual Investors | Investor Awareness | Scams and Other Fraud. ETC Brokerage does not provide investment advice or recommendations as to any investment. Schedule a one-on-one session with an expert alternative investment counselor. Equity Trust Company was formed to meet the needs of the small - and medium - sized investor. Equity Trust marketed itself as a passive custodian that acted only to administer its clients investments, and claimed that it did not owe any fiduciary duties to its clients, who were responsible for making their own investment decisions. Once a year the IRA custodian will contact the investment sponsor and ask for a value on the investment, and will report that value to the IRS to ensure that the investor isnt charged taxes on the investment. Diversify and protect your 401k, IRA, and retirement savings accounts Get The FREE 2022 Gold IRA Kit Americans Are Using to Protect Their Retirement Savings To change investments in a Fidelity IRA, you can follow these steps: Sign in to your Fidelity account online or through the mobile app. Litigation on the merits can substantially invoke the judicial process. Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area. 83% said yes. Provitas, LLC v. Quality Ingredients Corp. Federal Rule of Appellate Procedure 42(b). Hampton's motion to lift the stay in the Texas case states that the case was originally set for trial in October 2015 but that it "did not proceed to trial because the remaining plaintiffs' claims against Equity Trust were dismissed by agreement. Investors looking for non-traditional investments can roll qualified pretax funds from a 401k or a pension plan into a self-directed IRA. They dont delve into the wisdom of investing in any non-traditional investment, and certainly dont perform any due diligence on the investment or the investment sponsor. The SEC Enforcement Division alleges that Equity Trust Company took an active role in marketing investments offered by Ephran Taylor. A lawsuit filed in the US District Court for the Northern District of California was dismissed by the court for failure to state a claim. Sounds like you have get on the phone with an "IRA counsellor" and "start a conversation" before they give up the goods regarding pricing. . But contrary to what they told investors, Taylor and Poulson used the proceeds from these investments to pay off personal and corporate expenses. The Texas state court then denied all of Equity Trust's summary-judgment motions except its motion on res judicata, regarding which the state court stayed all further action pending a final ruling from the Ohio appellate court. . Equity Trust is a custodian of "self-directed individual retirement accounts" ("SDIRAs"), a type of IRA that permits investments in assets other than publicly traded stocks and bonds, such as real estate and promissory notes. Most (99%) IRA custodians do not allow non -traditional investments. An untimely assertion of the right bears on the question of prejudice. In its summary-judgment motions on the aiding and abetting breach of fiduciary duty and fraud claims and on the statutes of limitations, Equity Trust mentioned in footnotes that it was also filing a motion for partial summary judgment against Hampton based on res judicata. After losing on summary judgment and with the case set for trial, Equity Trust immediately applied for a permanent injunction in the same federal court that had issued the 2013 order. at 591. The easy-to-navigate tools on the platform allow you to view your account balances on various investment allocations, including traditional and alternative. Our knowledgeable, client-focused associates are here to provide dedicated, personalized service. Already a client?Visit our Client Resources. A rare feat these days). Did you find the investment or did the investment find you? The self-directed IRA and alternative investment industry needs to provide more transparency and legitimacy to investors as to their role in the investment process. The Anti-Injunction Act states that "[a] court of the United States may not grant an injunction to stay proceedings in a State court except as expressly authorized by Act of Congress, or where necessary in aid of its jurisdiction, or to protect or effectuate its judgments." Co. v. Debis Fin. Make your practice more effective and efficient with Casetexts legal research suite. No doubt this is a black eye for the self-directed IRA industry. It is always a sad day when people decide to defraud investors. This case was filed in U.S. District Courts, Kentucky Western District. *Founded in 1974 | Self-Directed IRA Custodian since 1983. By providingself-directed IRAs, we want our clients to feel fully empowered to thoroughly investigate and examine investment opportunities that come their way. Earlier this week, the Securities and Exchange Commission (SEC) brought a regulatory action against Equity Trust Company. An Ohio court of common pleas granted Equity Trust's motion for summary judgment. You are leaving trustetc.com to enter the ETC Brokerage Services (Member FINRA/SIPC) website (etcbrokerage.com), the registered broker-dealer affiliate of Equity Trust Company. (quoting Nicholas, 565 F.3d at 910). ETC Brokerage does not provide investment advice or recommendations as to any investment. The Equity Trust Company has the technology, expertise, experience to ensure that they are always there when you need them. Eye for the self-directed IRA CUSTODIAN since 1983 to them and the Seattle.., including traditional and alternative investment industry needs to be a Company assists. Take heed of these risk avoidance equity trust company lawsuit be true their exposure to a fraudulent.. 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