Posted May 2, 2023
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Attention Premier investors: contact investor lawyers for a free evaluation of your potential options and claims for compensation today.
✓ Are you an investor in Premier Global Corporation, Premier Factoring, Premier Factoring Group or any of the related entities, including PF-2, LLC, PF-3, LLC, PF-4 LLC, PF-5, LLC, PF-6, LLC, and PF-7, LLC?
✓ Did you invest in Premier funds at the recommendation of a financial advisor or investment professional?
✓ Are you concerned about the recent Ponzi scheme allegations brought against Premier and its funds by the Oklahoma and Kansas Securities regulators?
✓ Would you like your potential claims for compensation to be reviewed by an experienced team of investor advocates, who work on a contingency fee basis?
If so, request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
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Posted May 2, 2023
The investment fraud attorneys at Rosca Scarlato LLC law firm, Alan Rosca and Paul Scarlato, have been in contact with many Premier Global Ponzi scheme victims who invested in Premier’s PF-2 LLC through PF-7 LLC programs, and are preparing to take action on behalf of a group of Premier investors against a financial service company that employed the investment advisor who recommended Premier to those investors.
Attorneys Rosca and Scarlato plan to seek compensation from that financial company for the advisor’s recommendation of Premier, which they allege was improper and lacked a reasonable basis. Investors concerned they lost money as a result of investing in Premier at the recommendation of a financial advisor or investment professional may request a free, no-obligation case evaluation via email at arosca@rscounsel.law, through the contact form on this page, or by calling toll free at 888-998-0530.
The investigation by attorneys Rosca and Scarlato indicates that Premier Global was surrounded by serious red flags that strongly suggested the company was engaged in suspicious and potentially unlawful activities. Generally, investment advisors have an obligation to conduct adequate due diligence before recommending a new investment product to their customers. Attorneys Rosca and Scarlato believe that a reasonable due diligence process would have quickly identified those red flags surrounding Premier. According to attorney Alan Rosca, “no advisor who properly vetted Premier before agreeing to start recruiting investors for Premier should have recommended that investment program to their customers.”
The Rosca Scarlato attorneys’ investigation further indicates that some of the investment professionals who recommended Premier to their customers received substantial sales commissions from Premier for recruiting those investors to invest in PF-2 LLC through PF-7 LLC. “Some of the advisors who recommended Premier to their customers may be trying to convince those investors customers that ‘all is well’ with those Premier programs and they should wait and not do anything,” attorney Rosca notes.
Generally, sales commissions create a conflict of interests for fiduciary advisors, because they may be tempted to put their own financial interests – receiving substantial sales commissions – ahead of their clients’ interests.
Records under review by attorneys Rosca and Scarlato reveal that Premier was sold by a network of sales agents who allegedly recommended that investment to their customers. Records reviewed by attorneys Rosca and Scarlato indicate that a group of sales agents cumulatively received over $1.7 million in sales commissions.
The Rosca Scarlato investor fraud attorney Alan Rosca continue to closely monitor the developments in the multiple cases filed against Premier and its principals. According to the Receiver’s January 2023 report, accessible here, the receivership has been able to collect approximately $20 million so far. By contrast, the Premier investors invested approximately $525 million, with most of the money being either spent or paid to earlier investors in Ponzi scheme fashion as alleged by the Oklahoma Department of Securities.
Given the modest amount recovered so far through the Receivership, compared to the apparent investor losses, attorneys Rosca and Scarlato have been evaluating ways to supplement the investors’ recovery through the Receivership by going after the financial companies that employed some of the advisors who improperly recommended Premier to their customers. This approach may not work for all Premier investors, and this blog is not legal advice and is for informational purposes only.
Typically, legal claims for compensation are subject to time limits and may be lost if not timely pursued. Premier investors who bought Premier investments at the recommendation of a financial professional and would like to learn more about their options may contact the Rosca Scarlato investor rights lawyers Alan Rosca or Paul Scarlato for a free, no obligation case evaluation via email at arosca@rscounsel.law, toll free at 888-998-0530, or by leaving a message using a contact form on this page.
Posted November 15, 2022
The investment fraud attorneys at Rosca Scarlato LLC law firm have been evaluating potential compensation claims on behalf of Premier funds investors.
Some Premier funds investors may be able to seek compensation for their losses from third-party financial advisors or investment advisory firms that recommended the Premier investments to them, separately from and in addition to any recovery obtained through the receivership action initiated by the Oklahoma and Kansas securities regulators.
Premier funds investors interested to evaluate potential options to seek compensation and/or pursue claims related to their Premier investment may contact investor rights attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Attorneys Rosca and Scarlato have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law, investment fraud, and/or Ponzi schemes, and are currently evaluating potential claims on behalf of investors in Premier Global, Premier Factoring and related funds.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful.
Concerned Premier investors may contact attorneys Alan Rosca or Paul Scarlato to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
Premier Global Corporation, a corporation based in Derby, Kansas, has been subject to regulatory actions initiated by the Oklahoma and Kansas securities commissioners in connection with allegedly operating a Ponzi scheme that raised over $100 million from hundreds of investors across 19 states.
Court documents show that as early as August 2020, the Oklahoma Department of Securities started investigating Premier Global Corporation, and related entities, and in October 2021 the regulator filed a civil lawsuit naming Premier Global Corporation; Premier Factoring, LLC; Premier Factoring Group, LLC, PF-2, LLC, PF-3, LLC, PF-4 LLC, PF-5, LLC, PF-6, LLC and PF-7, LLC as defendants.
The public records indicate that the Oklahoma Securities Commissioner sought a Court order to enforce the subpoenas issued by the regulator in connection with an investigation into alleged unregistered securities offering by Premier Global and related funds. Furthermore, the Oklahoma regulator alleged that Premier Global used unregistered agents to offer and sell the unregistered securities.
In early July 2022, following Premier’s alleged failure to produce the requested records, the Oklahoma Department of Securities filed a motion for sanctions and on July 11, 2022, the court issued an order enjoining Premier Global and its related entities from offering, selling, or renewing any securities, in addition to imposing a $250,000 civil penalty to be paid by Premier Global Corporation. As of the date of this article, the case is pending and no judgment has been entered.
On October 14, 2022, a separate case was filed by the Oklahoma Department of Securities asking the court for an order freezing assets, prohibiting the disposition of assets and destruction or disposition of records following Ponzi scheme allegations brought against Premier Global Corporation, Premier Factoring, and their related PF funds.
According to the Oklahoma regulator, investor money was allegedly misused to make hundreds of millions of dollars in intra-company transfers, pay commissions to selling agents, pay expenses unrelated that in no way benefited investors, and fund the lifestyle of Premier principals. In addition, investor funds were used to pay returns to prior investors in a Ponzi scheme-like manner.
The complaint further alleges that Premier engaged in unregistered offer and sales of securities, committed fraud, and made false and misleading filings, among others. Premier Global and its related entities allegedly made untrue statements of material fact concerning the profitability of the business, and the nature of securities sold to investors, the complaint adds. An order granting the requested assets freeze was entered the same day.
Two weeks later, on October 31, 2022, the Oklahoma securities regulator filed an emergency application for order appointing receiver to prevent the dissipation of assets. The court appointed a receiver noting that “there is a justifiable basis to believe that the following Defendants Premier Global Corporation (formerly known as Premier Construction Services, Inc. and doing business as Premier Construction Billing); Premier Factoring, LLC; PF-2, LLC; PF-3, LLC; PF-4, LLC; PF-5, LLC; PF-6, LLC; PF-7, LLC; DDI Advisory Group, LLC; Steve Jonathan Parish; and Richard Dale Dean (the “Receivership Defendants”) have violated the securities registration, securities professionals registration, and anti-fraud provisions of the Act, that a clear threat of immediate and irreparable injury and harm to Plaintiff and investors exists.” The receivership case is currently pending and no judgment has been entered.
Potential Compensation Claims
On November 1, 2022, the Office of the Kansas Securities Commissioner filed a complaint alleging that starting at least 2018, the Premier Global Corporation principal, Steven Jonathan Parish, and Richard Dale “Dickie” Dean, who allegedly controlled Premier Factoring and the PF funds, operated a “massive Ponzi scheme.”
According to the complaint, Premier Global and its related entities, referred to in the complaint as “Factoring Entities,” were purchasing invoices or accounts receivable from construction contractors at a discount, and then reportedly generated profits by collecting the full amount owed from the invoices, a process called “invoice factoring.”
To fund its activities, Premier allegedly started raising capital in 2010 through the sale of securities in the form of “Transferee Agreements” and “Promissory Notes.”
While representing to investors that the company is profitable and generating revenues of hundreds of millions of dollars, since at least 2018 Premier allegedly paid investment returns to earlier investors with funds raised from new investors, the complaint indicates.
In addition, the Kansas securities regulator alleges that Premier investor money were misappropriated. Investor funds were allegedly commingled in at least 21 bank accounts held at least five banks, and used to pay commissions to salespersons contrary to what was told to investors, to pay expenses unrelated to the invoice factory business, and to pay for personal expenses of Steven Parish and his family members, the complaint alleges.
According to the complaint, as of August 2022, Premier Global allegedly ran out of money and was no longer able to pay bills or investors.
As a result, the Kansas Securities Commissioner asked the court, among others, for a temporary restraining order and a temporary and permanent injunction enjoining Premier Global, Premier Factoring, and their related funds from offering and selling any securities in Kansas, in addition to a freezing of the assets for all Premier entities and appointing of the receiver ordered by the Oklahoma court. The Kansas securities regulator also asked the court for an order of restitution and disgorgement of all ill-gotten gains, and civil penalties against Steven Parish and Richard Dean in the amount of $1 million each. The case is currently pending and no judgment has been entered.
Investor rights attorneys Alan Rosca and Paul Scarlatoat Rosca Scarlato are investigating potential options and are evaluating potential claims for compensation on behalf of investors in Premier notes. They have decades of combined experience representing victims of corporate or financial misconduct.
If you are a Premier investor concerned about your investment, and believe you suffered losses, you may contact attorneys Alan Rosca or Paul Scarlato to learn more about your rights and for an evaluation of your potential claims, or to provide useful information. All consultations are free.
The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful.
To reach attorney Alan Rosca or his colleagues, Premier investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. Premier Global Ponzi Scheme Investigation page is not affiliated with Premier Global Corporation, Premier Factoring, or any other related entity. There has not been an adjudication on the merits of any allegations referenced in this blog post, as of the date of the posting.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.