equity trust company lawsuit

This timely appeal followed. Equity Trust is a passive custodian and neither Equity University nor ETC provides tax, legal, or investment advice. 2004) (quoting Peaches Entm't Corp. v. Entm't Repertoire Assocs., Inc., 62 F.3d 690, 693 (5th Cir. Ripoff Report on: Equity Trust Company - Equity trust company incorrect r forms gross incompetence westlake ohio. New Pierre-Chtel, Auvergne-Rhne-Alpes, France jobs added daily. A court of appeals upheld the dismissal in December, 2015. Laura Hampton sued Equity Trust Company in federal court for allegedly aiding and abetting a Ponzi scheme involving real-estate loan participation agreements. Any time there is a fraud or alleged fraud, it makes all firms in the same industry guilty by association in the public eye. The DI Wire is the definitive news source for the illiquid alternative investment industry. Check out our #1 Recommended Gold IRA Dealer! Innovative Advisory Group is an industry leader when it comes to due diligence for alternative investments held in self directed IRAs. Only time will tell if they are ultimately held responsible for their role in this alleged fraud. 13cv182283 Hampton also argues that, even if the federal court properly exercised jurisdiction under the Anti-Injunction Act, Equity Trust waived the application of the forum-selection clause by substantial litigation on the merits for over two years in Texas state court. The risk of fraud with Self Directed IRAs is a well known problem among industry participants. The next month, Hampton and the other accountholders from the federal case sued Equity Trust, the Langguths, and another entity in Ohio state court, alleging violations of the Texas Securities Act, as well as several mostly fraud-related common law claims. Schroeder led the Company's investor earnings conference on January 18, 2018, as out-going CFO. I opened my Roth IRA account with ETC in 2012 and love their service and website processing. In Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. Can you explain, in your own words, what the investment is and how it works? Here are some of the materials provided to investors as a resource: The Self-Directed IRA industry participants and industry regulators have made considerable efforts to combat this problem. 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. We provide our clients with the tools and technology they need to invest in traditional investments and alternative investments all in one place. By: Sophia Lopen, J.D. Were here to answer any questions, help guide you through the process, and provide more detailed information and education specific to your journey. Hampton also contended that even if the relitigation exception did apply, Equity Trust waived application of the forum-selection clause. Even in its summary-judgment motion based on res judicata, Equity Trust did not specifically discuss the forum-selection clause in Hampton's contract nor argue that the Texas state court should defer to the federal court. (quoting Nicholas, 565 F.3d at 910). . Warning: Avoid scams! This case arises out of an alleged Ponzi scheme operated in the Austin area involving real-estate loan participation agreements. A remedy is whatever the party to a lawsuit is asking for. A rare feat these days). Customize your document by using the toolbar on the top. 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. A revocable trust in its current form would be far from satisfactory for this bill. In re AIU Ins. Equity Trust Co. Equity Trust Company, provides self-directed IRAs and 401Ks. 2023 Equity Trust. Applying the ordinary rule, then, Equity Trust Company is a citizen of South Dakota and Ohio. Equity Trust then failed to pursue a hearing on its special exceptions. The login page will open in a new tab. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Open and fund your new account, then start investing in the almost-endless possibilities. While the Division had presented evidence indicating that Equity Trust knew that Taylors business was in financial trouble, Judge Foelak found that knowing that [Taylors business] was financially pressed and losing money is not the same as knowing that Taylor was engaged in fraud. Judge Foelak further rejected the purported standard of care for SDIRA custodians proffered by the Division, finding that even if it may be desirable policy, it was essentially made up of whole cloth. Finally, Judge Foelak noted that even if Equity Trust had abided by the standard of care urged by the Division, it still would not have known about Taylors and Poulsons fraud. Equity Trust moved to dismiss the claims of the account-holding plaintiffs for improper venue under Federal Rule of Civil Procedure 12(b)(3) based on the forum-selection clause in the agreements that the accountholders had executed with Equity Trust. As a result of hard work and talented people, we are doing well. The SEC seeks an order that Equity Trust Company cease and desist its actions regarding Taylor and Poulson. In the arbitration context, we have held that "[w]aiver will be found when the party seeking arbitration substantially invokes the judicial process to the detriment or prejudice of the other party." 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. Section 8.15 of that Agreement states that "[a]ny suit filed against [the] custodian arising out of or in connection with this agreement shall only be instituted in the county courts of Lorain County, Ohio . BBB gives them a 4.04 out of 5 based on 121 customer reviews, BUT they are not BBB accredited, as you can see below: According to their website, Investopedia named them the best self-directed IRA company of 2022. Rather, Equity Trust simply contended that summary judgment should be granted in favor of Equity Trust and against Hampton. Taylor issued promissory notes in his company, City Capital Corporation. Unfortunately, a revocable living trust cannot protect your assets from trademark infringement, an attorney, a creditor, or anyone who might want to sue you. Already a client?Visit our Client Resources. Its now easier than ever to find the most in-demand investment opportunities for your self-directed account. Because the lawsuits contain the same or similar allegations . Clients rely on us to fulfill the custodial and administrative duties required for each type of investment account they hold. All rights reserved. Impending Investigation: EQUITY TRUST COMPANY, EPHREN TAYLOR, and RANDY POULSON. appellants c.a. Financial advisors for their part should be able to work with their clients to provide due diligence capabilities for the investments, helping to identify fraud and protect the investors. 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. We review the federal court's grant of injunctive relief under an abuse-of-discretion standard. According to the Kansas City Star, it turned out to be a $16 million Ponzi scheme, and Taylor was sentenced to almost 20 years in jail. Discover why clients from all 50 states have entrusted us to be the custodian of more than 213,000 accounts holding over $34 billion in retirement assets.**. Still not convinced? Already partnered with us?Visit our Client Resources. It is (as mentioned above) kind of the company's specialty. However, Equity Trust appears not to have pursued a hearing on its special exceptions, and apparently no hearing was ever set. 2010) (quoting Walker v. J.C. Bradford & Co., 938 F.2d 575, 577 (5th Cir. This field is for validation purposes and should be left unchanged. People trying to commit fraud or run a scam will seek out people who may be unsophisticated or inexperienced in investing. 2010). They help match your investment goals Defendant James J. Kavanaugh ("Kavanaugh") has served as an Officer of the Company since 2008. Content on this website, may not be neutral or independent. review! Legitimate investments dont rely on special secrets of the rich, inside information they dont want the public to know, or use rhetoric regarding how the U.S. Government is keeping the little guy from being rich. A suit in equity is a legal action where the plaintiff seeks an equitable remedy. Leverage your professional network, and get hired. Clients from all 50 states have entrusted us to be their self-directed account custodian. 2004) (determining that defendant did not waive reliance on a forum-selection clause where defendant filed a motion to dismiss based on the forum-selection clause five months after plaintiff filed the lawsuit); In re ADM, 304 S.W.3d at 374 ("Simultaneously filing an answer and motion to transfer venue with a motion to dismiss falls short of substantially invoking the judicial process to [plaintiff's] detriment or prejudice."). Be careful. For more articles from Kirk, check out RIA Perspectives from Kirk Chisholm. cash and the remainder in equity awards. at 591. Investors should take heed of these risk avoidance tactics. As an SDIRA provider since 1984 with over $34 billion in invested assets, Equity Trust has forged the right combination of experience, investment capabilities, and customer focus to stand out. ETC Brokerage Services provides access to brokerage and investment products which ARE NOT FDIC insured. % Named as a defendant in the lawsuit was IRA custodian Equity Trust Company. But contrary to what they told investors, Taylor and Poulson used the proceeds from these investments to pay off personal and corporate expenses. Why should I hire a trust litigation attorney? Your email address will not be published. 28 U.S.C. Ephren Taylor was from Overland Park, Kansas. 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. . After interviewing at Equity Trust Company, 52% of 29 respondents said that they felt really excited to work there. As we have previously reported, the constitutionality of the SECs use of administrative proceedings has been challenged in a number of recent lawsuits. At least 100 investors had over $5 million invested with Taylor and Poulson and held in self-directed IRAs at Equity Trust Company. I highly recommend Equity Trust Company! 1995))). To check the status of this licensee, visit Financial Services and Mortgage Lending Licensees Search. Self-directed IRA custodians like Equity Trust Company allow investors to purchase investments that arent traded on the stock exchange. Historically, there were courts of law and courts of equity, and each handled different types of . Our recoveries on behalf of our clients exceed $40,000,000. The real estate investment trust (REIT) is one of the healthcare sector's largest, so it's no surprise that investors are curious about how much money an investment from a decade ago might have made. I was recently made aware of a class action lawsuit against Equity Trust ( see link here) 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. Our firm takes cases on a straight contingency fee, with no money up front, and no money owed unless there is a recovery. . real estate business from buying two houses per year to In Mirant, we determined that "listing the right to compel arbitration as an affirmative defense in [appellant's] answer and reserving that right in its motions to dismiss" was insufficient to show a timely assertion of a right to arbitrate where appellant also delayed in asserting that right. 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. Abraham v. Alpha Chi Omega, 708 F.3d 614, 620 (5th Cir. EquiTrust Life Insurance Company. A federal court abuses its discretion if it: "(1) relies on clearly erroneous factual findings when deciding to grant or deny the permanent injunction, (2) relies on erroneous conclusions of law when deciding to grant or deny the permanent injunction, or (3) misapplies the factual or legal conclusions when fashioning injunctive relief." In the interim, Equity Trust resolved the claims of all plaintiffs in the Texas case except Hampton's individual claims. Even the best investments come with the possibility of loss and a fair degree of risk. Equity Trust Company is an IRS-approved custodian helping individuals, businesses and financial professionals invest with a range of tax-advantaged investment accounts. 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. 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. Traditionally, each party to a dispute must pay its own costs and expenses, including attorneys fees. 83% said yes. Equity Trust Company is a service company that empowers individual options traders, financial professionals and institutions to transform investment portfolios through training in alternative assets including real estate, tax liens, exclusive stocks and precious metals. 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