I have a Canadian friends are planning to sue me over money that We invested in platform for bitcoin investment. But the platform took the money, but since im the middleman they are suing me for their loss.
Law school is three years, not three days. Evaluating legal issues is not nearly so simple. Hire an attorney to review the contracts, communications, and other facts. But it is very possible you have violated some securities laws.
Please DO NOT message or phone me with further questions or comments as the discussions would be outside this forum and would not be visible to the public (the only exception to this being for serious prospective clients). If you have additional follow up questions or additional facts to add, re-draft them into a new question and repost it. My responses on this website DO NOT constitute a consultation, nor do they establish an attorney-client relationship. Only a written retention agreement signed by client and myself will establish an attorney-client relationship.
There was a time that my father complained to the Boston Celtics about an investment that he made with them. As Celtic management reminded me father, investments have a risk. All investments have risk. There are at least nine different types of investment risks. You may or may not be liable depending on many factors. You should bring all you have to a securities attorney, including the prospectus and/or offering, investment round docs or funding round docs. Best wishes.
The response above is general information related to law and not intended as legal advice since it’s impracticable to provide thorough, accurate advice based upon the query...
In general, if you made or participated in making any of the material representations to the investors or if you endorsed or adopted the representations made by others and now it is shown that one or more of the representations contained material misstatements or omissions of material fact, you may be exposed to claims asserting that you committed securities fraud. In the event that a claim of securities fraud were asserted, there are many issues that would need to be examined that go far beyond what I have summarized above. You should retain legal counsel promptly and without delay.
The foregoing does not establish an attorney-client relationship and is intended solely for educational purposes only.
I agree with everything stated by the two counsel above. I add that you may have pulled off the somewhat incredible feat of violating both the 1933 Registration Act (for initial sales, unusually by underwriters and their agents) & the 1934 Exchange (or Trading) Act (for fraud that occurs after registration in the exchange (or trading) of securities). Regarding the former you mainly need to refer to Section 11 and, for the latter, to Section 12(g). Taking a look at Regulation 10b-5 of the '34 Act (17 CFR Section 240.10b-5) is probably a good idea too.
If, after reading these statutes and rules (and further researching them and the relevant case law on the internet), you don't get a chill down your spine, you are probably clinically dead. Try to find a lawyer who understands these statutes, especially from a defense standpoint. Such lawyers usually charge between $500-$750/hour, if you're lucky. I would recommend settling this case before your investor reads the above sections and finds out that he has a really good case.
The investor still may lose his case but "winning" will probably cost you between $100K-$250K. BTW, if you lose, you'll have to pay his or her attorney's fees, etc. in addition to damages (generally what he lost). Generally, I have found most investors will realize they have been stupid and will settle for 50% of their losses. If the person does not want his business associates finding out what a fool s/he has been, s/he just want "to save face" and may l settle for 25% -- maybe less. You do not mention amounts of money involved but such a settlement will usually be much less than the attorney's fees you'd pay "to win."
What Mr. Devereux says above about risk is true. And the disclosure of risk WITH THE PROPER PAPERWORK, forms a formidable defense. You don't seem to have such '33 or '34 Act paperwork. Under the above Sections 11 & 12, the mental abilities, knowledge of risk, etc. do not matter. You could have a Ph.D. in economics or finance and still recover your loses.
Get some advice from a lawyer "in the background," about settling this case. Most investors are willing to settle for $X/month for Y months. If you have even some of the required paperwork, you may be able to force the plaintiff into securities arbitration, which is generally more merciful than the courts (e.g. they rarely award attorney's fees). (The key word being "securities:" if you have any paperwork, it seems it doesn't comply with the Securities Laws so your offer, sale or exchange is just Common Law fraud (research on internet) and not securities fraud.) From what you say, it seems you'd be "stuck" with a court case.
Good luck -- from what you have stated about the situation, you are going to need it.
The above is not legal advice. To give legal advice, I would need to know many more facts and particulars. It is simply a commentary on an interesting question posed by a member of the public and it is answered, under the Constitution, as free speech for the public good. Beware that the answer may be wrong or not apply in all situations. You must privately consult with an attorney to have your exact question in your particular situation answered accurately. No attorney-client relationship exists and no such relationship is anticipated from the answer. The answer is made to provide a commentary or a resource to all members of the public in the future and is not actually made solely for the benefit of the particular person asking the question in the present. Thank you and good luck.
I have only this to add-- did you have a written contract with them? If so, I DO hope you had a choice of law s clause. Internationalism litigation is not the same as US litigation, in several ways. This MIGHT help you.
This is general advice. You are anonymous. If you PM me I won’t know what it’s about.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline