The Unholy Trinity of two corrupt lawyers and a disreputable hedge fund are currently attempting a $30 million dollar swindle of Apple REIT 7 & 8 shares from unsuspecting shareholders.
The Anatomy of a Scam:
Step One: Create Fear and Panic
Andrew Stoltmann of Stoltmann Law Offices and James Eccleston of Eccleston Law Offices both in Chicago run ads in newspapers insinuating that Apple REIT shareholders have suffered losses. The truth is, there are no losses. They succeed in scaring an elderly share holder into becoming their client so they can then file a false complaint to FINRA supposedly on
her behalf. The newspapers pick up the newly opened FINRA complaint initiated by Eccleston and Stoltsmann and write fictitious and sensationalized articles about the underwriter and the issuer without checking any facts. Eccleston writes childish blogs about shareholder "blood baths" and "judgment day approaching" unless you run to him for protection. During the fear ramp-up stage they repeat the steady mantra that the $11.00 shares are only worth $3.00. The newspapers oblige and repeat the same mantra.
Step Two: Enter the White Knight
A press release is issued to the newspapers disguised as an interview with an official from McKenzie, Patterson and Fuller (MPF), a predatory and opportunistic hedge fund. The MPF official posing as an authority declares, based on our calculations the Apple 7 & 8 shares are not worth $11.00 they are only worth $4.00, however, we are willing to buy 5 million shares from each REIT from the shareholders at $3.00, we need to make a nominal profit but if we can help we are willing to do it. The Chicago Lawyers cheer, the newspapers nod in approval. A savior has arrived in the nick of time!
(Side note: does anyone believe a hedge fund would invest $30 million dollars in "worthless" shares?)
Step Three: Set the Trap
The mini-tender offer is sent to all Apple 7 & 8 shareholders announcing the Good News that MPF is here to take those risky $11.00 shares earning 7% annually off the hands of Apple 7 & 8 victims. The infomercial like letter repeats Dont wait, act now! Limited Time Offer! Hurry, limited time to act! MPF has done its best to create fear and urgency.
Step Four: Wait For the Mice to Take the Cheese.
Conclusion
Do these bottom feeding scoundrels really believe Apple 7 & 8 shareholders like me and thousands of others are too stupid to see this obvious con job? This is an attempted $30 million dollar robbery of elderly retirees, childrens college funds, small business owners retirement plans, out of work shareholders trying to put food on the table and young families trying to build a nest without stock market risk. The SEC declared in 2008 that more often, these mini-offerings are being used to catch people unaware. Once you transfer your shares to these criminals there is no getting them back. Throw MPFs criminal offer in the trash! My Apple 7 & 8 shares have provided protection to my principal and provided me with 8% and 7% dividends that I receive monthly, even during the economic collapse! They never missed a dividend and Ive never lost a dime in all the years Ive been a shareholder. These scum of the earth lawyers, Eccleston and Stoltmann along with their partners in crime at MPF can have my shares when they can pry them from my cold dead hands!
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