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NJ Bureau of Securities Orders Website to Cease and Desist Impersonating a Broker-Dealer in Internet Investment Recovery Scheme
Investors Urged to Beware of Entities Demanding Upfront Payment to Recover Lost Funds
Attorney General Matthew J. Platkin and the Division of Consumer Affairs today announced emergency action by the Division’s Bureau of Securities against a fraudulent online investment recovery scheme impersonating a broker-dealer.
The Bureau issued a Summary Cease and Desist Order, effective immediately, directing the operators of the website www.almaxfinancialsolution.com to cease impersonating a registered broker-dealer. The website scammed investors by promising to recover lost or stolen money but failed to deliver, violating New Jersey’s Uniform Securities Law.
The fraudulent website impersonated a legitimate New Jersey-registered broker-dealer, misleading investors with false claims of being a "recovery intelligence firm." It enticed individuals seeking to recover lost funds to provide personal contact information, then used deceptive tactics to pressure victims into sending cryptocurrency as payment for recovery services.
“Asset recovery offers can be tempting to individuals hoping to recoup funds lost in investment scams,” said Attorney General Platkin. “The sad reality is that these offers are often nothing more than attempts to con victims into handing over more of their assets. Our Bureau of Securities is taking emergency action to shut down this unlawful operation and prevent the revictimization of investors who have already suffered significant losses.”
“In some cases, operators of asset recovery scams are associated with the scheme that defrauded the investors in the first place. These associates return to target their victims with a new scam,” said Cari Fais, Acting Director of the Division of Consumer Affairs. “We’re raising awareness of these scams and urging investors to be wary of anyone asking for upfront fees to recover lost funds.”
In an effort to appear credible, the website listed fake addresses in New Jersey and the United Kingdom, used the actual address of the broker-dealer it impersonated, and included fake testimonials and stock photos with fabricated names and titles.
The website was initially suspended by its web host in April 2023 due to abusive practices, but it re-emerged under a different domain service before becoming inactive after April 1, 2024. The Bureau's order today mandates the shutdown of the website and warns the investment community about these illegal activities.
“This case illustrates the lengths to which scammers will go to trick investors into throwing good money after bad to recoup their losses and the lengths to which investors will go to get their money back,” said Elizabeth M. Harris, Chief of the Bureau of Securities. “We urge people to approach asset recovery offers with extreme caution. Thoroughly research any firm or agency before giving them your personal information and never pay money up front. Any demand for advance fees is a huge red flag that you’re dealing with a scammer.”
To learn more about spotting and avoiding such scams, investors can visit the Financial Industry Regulatory Authority’s (FINRA) website at FINRA Recovery Scams.
The Bureau’s investigation was led by Deputy Bureau Chief Amy Kopleton, Investigator Richard Pearsall of the Enforcement Unit, and Supervisory Investigator Arlene Ferris-Waks of the Complaint and Investor Education Unit.
The Bureau of Securities is responsible for protecting investors from fraud and regulating the securities industry in New Jersey. Investors are urged to “Check Before You Invest” by verifying the registration status and disciplinary history of any financial professional operating in or from New Jersey. This information can be obtained by contacting the Bureau toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378), from outside New Jersey at (973) 504-3600, or by visiting NJSecurities.gov. Investors can also contact the Bureau for assistance or to report concerns about New Jersey-based financial professionals or investments.
