Cedarbrook Financial, Securities America, Randy Schneider and other partners at Cedarbrook recommended Shale Properties as a reasonable and safe investment to their clients. They promised significant returns on their principal. They claimed that "we have met the owners several times; we have seen the property they intend to drill on; they perform". Several months after investing based on the representations and expertise of Securities America, Cedarbrook and Randy, the investment was shown to really be a ponzi scheme and investors in Cleveland lost over $9M. When asked about this, the partners at Cedarbrook said, "it's ok, you are rich, you can absorb the loss". Very nice way to treat a client. It was later shown that there was no due diligence done, etc. Also, Cedarbrook and Securities America put investors in illiquid real estate investments that they represented to be liquid. "Our clients use this investment to pay quarterly taxes. Of course, it's liquid." But, it was a lie by Randy, et al. And IMH who represented that their investment was liquid within 3 months of putting your money in. This investor has yet to see a dime back.
0 comments