If you’re an investor who’s been burned by misleading and false information in the high-stakes securities market, you need exceptional counsel to prove fraud and recover the compensation you’re due. Or, if you’ve been accused of securities fraud, you also require outstanding representation to defend yourself, your business and reputation. With more than 100 years of combined experience handling these complex claims, our lawyers apply deep regulatory, business and legal insight and skills to extricate individuals and organizations from financially perilous situations. We understand securities litigation inside-out—and we know how to craft winning strategies.
Burford Perry successfully resolves securities claims for defrauded investors in “big data” company providing services to the insurance claims industry
Multiple investors lost their full investment in a company promoting its use of big data and drones as a breakthrough technology-driven process to resolve roofing damage claims. These investors retained Burford Perry to see if they could recover their losses. The company on paper looked like a sure success, a CEO with a Ph.D. in Data Sciences from a prestigious university who had experience with known Houston investors, and some big-name customers even as a new company.
Burford Perry Approach:
After we filed our first lawsuit for three investors, we quickly learned that the company’s only remaining asset was its insurance policy. To ensure we could recover from this insurance, we turned a fraud case into a Texas Securities Act one, which avoided pleading intentional torts and preserved our ability to recover against the policy. We limited our number of clients so that those we did represent could potentially recover their full investments. In discovery we were able to show that despite all its “big data” claims, the company had performed only a few hundred roof inspections, mostly in a demonstration project for a large insurer who declined to extend the contract. We showed that the claims resolution process still required significant human involvement.
In a two-day deposition of the CEO, we exposed the company as a fraud. Then over a series of mediations, we settled our clients’ claims, generally obtaining a return of their investments and eventually claiming every dollar available under the insurance policy.
The cases are:
New Commonwealth Investment, LLC, and Acarman, Inc. v. Frank Li and Panton, Inc.; Cause No. 2017-59023; In the 80th Judicial District of Harris County, Texas
Dongmei “Annie” Zheng v. Frank Li and Panton International, Inc., Cause No. 2017-77055; In the 151st Judicial District of Harris County, Texas.
Mike Budworth, Bryan Huddleston, and David Wilson v. Frank Li and Panton, Inc.; Cause No. 2018-50246; In the 234th Judicial District of Harris County, Texas.
Featured Client Story
Experienced service stretches across the securities law spectrum
When clients find themselves the target of investment fraud or other securities wrongdoing, or they face securities-related legal claims against them, our lawyers can help. Businesses in a wide range of industries rely on us to represent them in a vast array of disputes that take place in this area. Our team handles accounting fraud, such as falsifying details in corporate filings; advanced fee fraud embezzlement; insider trading; internet investment fraud, market manipulation, also known as “pump and dump” fraud; offshore scams; Ponzi and pyramid schemes; promissory notes; and stockbroker churning, among others.
Our well-versed team also tackles claims of breach of fiduciary duty, which frequently intersect with problematic securities transactions. In addition, we diligently stay on top of rapidly evolving and cutting-edge securities-related issues, such as those involving artificial intelligence (AI) and cryptocurrency. We draw on that knowledge to craft sensible—and often inventive—approaches to address the novel legal questions in these and other emerging areas.
Knowing what to look for and piecing the puzzle together
Securities cases arise out of a variety of circumstances, and the matters rarely present themselves in a straightforward manner. We address the challenge by delving deep, peeling back the layers of a dispute, and uncovering its essential core. We then devise and deliver a shrewd strategy to negotiate an optimal settlement if that’s the right course of action for the client. Or, if going to trial is best, we take it to court and do all we can to prevail, which we’ve done numerous times.
Victims of securities fraud or potential securities fraud usually allege that the defendant misrepresented or failed to provide essential financial information before the purchase or sale of a security. On behalf of our client, we take full advantage of the statutory right to inspect books and records of a potential defendant to investigate the series of events leading up to the suspicion or allegation of fraud. Founding partner Robert Burford, in particular, draws on his accounting background to uncover the facts and connect the dots. When we represent the defendant, our team also examines the claimant’s financial fingerprints, often finding the linchpin of the dispute that topples the claim and clears our client.
Fully understanding all the legal contours and jurisdictional differences
It’s always best to resolve real estate and construction-related issues in their earliest stages, before they escalate. Our lawyers, however, are happy to discuss your matters and various courses of action at any phase of the dispute. We obtain substantial verdicts and settlements for clients through court proceedings and alternative dispute resolution methods such as mediation and arbitration.
How we work with you
A multi-layered web of state and federal rules and laws controls and shapes the securities and investments sector. Organizations such as the Securities Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), and the Texas State Securities Board administer and enforce securities-related regulations. At Burford Perry, we maintain a full understanding of the governing framework and how constantly changing laws affect the financial status of those we represent.
Investment fraud lawsuits often hinge on technical details. Texas securities laws are particularly nuanced, and individuals and businesses frequently don’t know that a transaction is subject to the Texas Securities Act (TSA] because the state defines the term “security” broadly. Unlike federal securities laws, TSA rules don’t require proof of scienter (bad intent) or reliance, which creates a lower standard of proof compared to federal laws. We understand the specifics of both state and federal statutes as well as or better than any other lawyers who practice in this dynamic area, which enhances our ability to effectively serve clients.
Additionally, our familiarity with the various jurisdictions where securities issues are heard gives our clients a significant advantage when they become embroiled in a securities-related dispute. Frequently, we know the decision-makers, the ways in which they operate, and how they’ll likely rule on a case. That helps us position our clients for successful outcomes.