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Reed Richard Kathrein

Reed Kathrein’s Answers

3 total

  • Is there an statue of limitations for securities fraud?

    is there a time limit to file criminal charges for securities or commodities fraud? does a payment agreement between the parties mean a complaint cannot be filed?in what time frame?

    Reed’s Answer

    Of course, there are always statutes of limitations. But as an investor you need to concern yourself most importantly with your own claims in a civil action. Under the federal securities laws you have two years from the time you should have discovered the facts constituting the fraud, but not more than 5 years from the violation. If you bought stock pursuant to a fraudulent Registration Statement or Prospectus, you have only one year from the time you should have discovered the facts, but no more than 3 years.

    You cannot file a criminal complaint. The government generally has 5 years to file a case for mail or wire fraud. If the scheme affects a financial institution the statute is ten years. But other statutes may apply, and the limitations may be tolled by an ongoing scheme.

    I don't see how an agreed payment between the parties can affect your reposrting the violation, though you may be a whistleblower, or have some written agreement, both of which create other complications which must be addressed by a lawyer.

    The above is not legal advice, nor is it complete. It is information based on a hypothetical situation about the law designed to help users safely cope with their own legal needs. But legal information is not the same as legal advice -- the application of law to an individual's specific circumstances. Although I go to great lengths to make sure this information is accurate and useful, I recommend you consult a lawyer if you want professional assurance that this information, and your interpretation of it, is appropriate to your particular situation.

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  • Failing investment - Technology was withdrawn after 5 years. What are my rights as a shareholder?

    Five years ago, I invested in an company whose viability was based on a technology. The inventor/incorporator, who was a board member and officer for five years until a few months ago, withdrew his technology and resigned as a board member. The co...

    Reed’s Answer

    The answer depends on the representations made to you at the time of your investment. If this was a public company, there would be a registration statement and a prospectus if it was new stock. If it was a private offering, there was likely some sort of offering memorandum.

    Fraud may not be your only recourse. As an officer and director, the inventor owed fiduciary duties to the company, and may have breached those duties.

    As a shareholder, you could sue for fraud individually or as a class most likely in federal court. Alternatively, for breach of fiduciary duty you could bring a derivative action, on behalf of the company, against the inventor.

    The above is not legal advice, nor is it complete. It is information based on a hypothetical situation about the law designed to help users safely cope with their own legal needs. But legal information is not the same as legal advice -- the application of law to an individual's specific circumstances. Although I go to great lengths to make sure this information is accurate and useful, I recommend you consult a lawyer if you want professional assurance that this information, and your interpretation of it, is appropriate to your particular situation.

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  • False Adverising or Fraud

    I graduated last September with an Associates Degree in CADD. Since I graduate the school has went through 5 different career directors and I have yet to find anyone who will even give me an interview with this degree. I paid 43000 dollars for a p...

    Reed’s Answer

    You could only sue the school if it promised that you would get a job (breach of contract) or if it made representations concerning the placement of its graduates which turn out not to be true (false advertising). Even then, the representations would have to be fairly specific to your situation. So look at your agreements with the school, and dig into its representations.

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