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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 116815
Experience:  Attorney experienced in commercial litigation.
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Invested $100,000.00 of Self Directed IRA money in an

Customer Question

Invested $100,000.00 of Self Directed IRA money in an oil/gas investment. Our IRA Custodian, well known and respected, even stated "We have seen a lot of people work with them" and it was 100% my risk.
That was July/August of this year. October, 2015 the SEC Filed a lawsuit against this investment firm, and told them to cease all operations. This firm I invested, took $3.5 M of investor funds and moved to a software firm in San Jose, as the legal proceedings continue.
Again, 100% my risk any investment, but do I have recourse to pursue my funds since they are under SEC investigation for FRAUD?
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
The SEC likely has a freeze on all of their assets. First thing you need to do is file a complaint to the SEC to get your name on the list of investors to be reimbursed from assets of the company upon completion of their case.
Second thing you need to do if fraud was involved by the investor is to file a suit against the investor for fraud (bankruptcy could not get a claim for fraud extinguished). So you have to pursue this on two angles. First the complaint to the SEC and second you have to file suit against the investor for fraud to seek return of your money as he took it based on fraud and risk is not applicable when the money is taken from you based on fraud.