Michigan resident Mike Walters was ordered to cease and desist from unlawfully selling unregistered, non-exempt securities issued by Northridge Holdings, the alleged perpetrator of a $42 million Ponzi scheme emanating out of Illinois. It is also alleged that Mr. Walters violated the Michigan Uniform Securities Act (“MUSA”) by acting as an unregistered agent of Northridge.
Section 509(4) of the MUSA states that “[a] person acting as a broker-dealer or agent that sells or buys a security in violation of section 401(1), 402(1), or 506 is liable to the customer.” MCL 451.2509(4) (emphasis added). Section 402(1) of the Act prohibits any person from transacting business in Michigan as an “agent” of a broker or issuer unless the person is registered as an agent or is exempt from registration.
Investors who have purchased unregistered, non-exempt securities or who have purchased securities from unregistered agents can bring a private cause of action under the MUSA against the issuer of the security and/or against the agent. The remedy is full rescission, whereby the investor tenders the investment back to the issuer or agent, who must then return the amount of the principle investment together with interest at 6%, less any distributions that the investor has already received. The investor can also recover attorney fees and costs.
If you have suffered losses through investments issued by Northridge Holdings, or any other investments sold by Mike Walters, you may have a claim under the MUSA or under the common law. Call experienced investor attorney Daniel J. Broxup for a free no-obligation consultation.
If you have suffered investment losses as a result of malpractice or misconduct our experienced team of investment fraud attorneys may be able to assist you in recovering some or all of your losses. Call us toll-free at 888-607-4819 for a free consultation or email us through our “Contact” page to schedule a free consultation.