I went to do a search on active cases in NY and I noticed a new case recently filed in April. Its related to dealeradvance.
12. On July 27,2004, plaintiffs received, for good and valuable consideration, callable secured convertible notes (“Notes”), pursuant to a Securities Purchase Agreement (“SPA”) with SEVI and/or its predecessor, DealerAdvance, Inc. Pursuant to this offering, plaintiffs purchased Notes from SEVI in the aggregate principal amount of $499,909.56 in consideration of their payment of that amount. The SPA was one of several offerings of Notes by SEVI to plaintiffs. All of these Notes referenced herein are in substantially similar form as those issued under the SPA. Through October 2008, plaintiffs thereafter loaned additional funds to SEVI on similar terms, pursuant to similar agreements.
A. Awarding plaintiffs all sums due under the Notes, plus prejudgment interest, attorneys’ fees, costs and disbursements, in an amount to be determined at trial but believed to be in excess of $6 million;
Court: New York County Supreme Court Claim/Index Number: 600893/2010 Case Caption: NEW MILLENNIUM CAPITAL III LLC ET AL - V. - SYSTEMS EVOLUTION INC
This was posted by the WSJ today. The US Atty office states the investigation is ongoing which wasn't expressed in any article yesterday.
A former investment analyst from Long Island hedge-fund firm NIR Group LLC has pleaded guilty to securities fraud and two other charges.
The former analyst, Daryl Dworkin, pleaded guilty to the charges on Wednesday in the U.S. District Court for the Eastern District of New York, in Brooklyn. He faces a maximum 30 years in prison.
A lawyer for Mr. Dworkin declined to comment.
Federal authorities have been investigating the Roslyn, N.Y.-based NIR Group and founder Corey Ribotsky since at least 2009, people familiar with the matter have said. The criminal investigation has focused on whether NIR managers, including Mr. Ribotsky, misled clients about investment returns tied to stakes NIR owned in small companies, people familiar with the matter have said.
A lawyer for NIR and Mr. Ribotsky, Jordan Hershman, said Friday that the "company is cooperating fully with the government's investigation. It is confident that the facts will show that NIR and Mr. Ribotsky acted properly at all times."
A spokesman for the U.S. Attorney's office in Brooklyn said the investigation is ongoing.
NIR Group reported eight years of positive returns in its biggest fund with no negative months starting in 2001, according to figures in fund documents. NIR last year reported to investors it managed more than $780 million in hedge-fund assets. The firm specializes in private investments in public equity transactions, or PIPEs.
Mr. Dworkin's guilty plea was earlier reported by Forbes.
The criminal information, to which he pleaded guilty, said that among other things, Mr. Dworkin made false statements and material omissions to NIR investors, including about the assets held in NIR's PIPE funds. The information also says he accepted kickback payments from two co-conspirators—two "corrupt" PIPE deal finders—whose identities aren't disclosed but are known to prosecutors, the information says.
Mr. Hershman said, "At the time that Mr. Dworkin was in NIR's employ, NIR and Mr. Ribotsky were unaware of any criminal activity in which Mr. Dworkin engaged." The lawyer pointed to wording from the criminal information saying that Mr. Dworkin "took steps to conceal" from senior management the kickbacks he received.
In 2008, citing rough market conditions that made it difficult to sell holdings, NIR suspended redemptions in its biggest fund, AJW Offshore II. As of February 2010, it had returned a small amount of money to investors, people familiar with the matter said.
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