In a recent development, private investment vehicles associated with a high-net-worth family office have filed a complaint against Javier Martin-Riva, a representative of Bulltick, LLC (CRD 104005), alleging misrepresentation and misappropriation of funds in connection with investments in convertible notes issued by Theia International Group LLC, a technology company. The plaintiffs claim to have invested a total of $20 million in January 2021, and allege that Theia, Martin-Riva, and others made misrepresentations and misappropriated the plaintiffs’ funds.
Martin-Riva, who has been registered as a broker with Bulltick, LLC in Florida since March 18, 2019, denies the allegations in their entirety. He maintains that the plaintiffs are sophisticated institutions with professional management teams, including investment professionals and in-house legal counsel, who conducted their own due diligence, met directly with Theia’s executives on multiple occasions, and retained their own external legal counsel to advise them in the due diligence and investment process. Martin-Riva also states that the plaintiffs acknowledged in writing that they were not relying on him when making their investments.
The complaint, filed on January 4, 2024, is currently pending resolution. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Martin-Riva and Bulltick, LLC in connection with this matter. With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of successful financial recoveries for investors. They offer free consultations to clients and operate on a “No Recovery, No Fee” policy. Investors can reach them toll-free at 1-888-628-5590.
Understanding the Allegations and FINRA Rules
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The complaint alleges that Javier Martin-Riva, Theia International Group LLC, and others misrepresented information and misappropriated funds in connection with investments in convertible notes issued by Theia. Misrepresentation involves providing false or misleading information to investors, while misappropriation refers to the unauthorized use of investor funds for purposes other than those disclosed or agreed upon.
FINRA, the Financial Industry Regulatory Authority, maintains rules and regulations to protect investors and ensure the integrity of the financial markets. FINRA Rule 2020 prohibits members from engaging in manipulative, deceptive, or fraudulent practices. Additionally, FINRA Rule 2150 prohibits the improper use of customer funds or securities. Violations of these rules can result in disciplinary action, including fines, suspensions, or barment from the industry.
The Importance for Investors
This case highlights the importance of due diligence and the potential risks associated with private investments. Even sophisticated investors with professional management teams can fall victim to misrepresentation and misappropriation. It is crucial for investors to thoroughly research investment opportunities, the individuals involved, and the companies issuing the securities.
Investors should also be aware of their rights and the avenues available for seeking recourse in the event of investment fraud or misconduct. FINRA arbitration provides a means for investors to recover losses resulting from broker misconduct or fraudulent activities. Experienced investment fraud attorneys, such as those at Haselkorn & Thibaut, can guide investors through the process and help them seek the compensation they deserve.
Red Flags and Recovering Losses
Investors should be vigilant for red flags that may indicate potential financial advisor malpractice or fraud. Some warning signs include:
- Promises of guaranteed returns or low-risk investments with high yields
- Lack of transparency or reluctance to provide detailed information about investments
- Pressure to make quick decisions or invest significant amounts
- Inconsistencies in account statements or unexplained changes in investment strategy
If investors suspect misconduct or have suffered losses due to financial advisor malpractice, they should act promptly to protect their rights and seek legal guidance. Contacting an experienced investment fraud law firm, such as Haselkorn & Thibaut, can be the first step in recovering losses. Their attorneys can review the case, advise on the best course of action, and represent investors in FINRA arbitration proceedings.
Haselkorn & Thibaut offers free consultations to investors nationwide and works on a contingency basis, meaning they only collect fees if they successfully recover funds for their clients. With their extensive experience, high success rate, and commitment to client service, Haselkorn & Thibaut is well-positioned to assist investors in navigating the complexities of investment fraud cases and seeking the justice they deserve.
