Business ProfileforShore Management Systems, L.L.C.
Current Alerts For This Business
As of November 19, 2019 SEC Matter / File Number: 19-24713
The Securities and Exchange Commission today announced that it has filed an emergency action and obtained a temporary restraining order and asset freeze against two individuals and two companies they control in connection with an alleged $6 million Ponzi scheme that defrauded at least 55 investors, many of whom are senior citizens or small business owners.
According to the SEC's complaint, Neil Burkholz of Boca Raton, Florida, and Frank Bianco, of Pembroke Pines, Florida, through their companies Palm Financial Management LLC and Shore Management Systems LLC, solicited investors by falsely representing that their proprietary options trading strategies were highly profitable. In reality, as alleged in the complaint, the defendants invested less than half of investor funds and those investments resulted in near-total losses. The complaint alleges that the defendants misappropriated the remaining funds by using them to repay other investors and by transferring approximately $880,000 of investor funds to themselves and their spouses for personal use.
According to the SEC's complaint, the defendants sent false reports to investors to conceal their fraudulent conduct and give the investors the false impression they were generating positive returns.
"The SEC's emergency action is intended to protect prospective investors from future harm by halting what we allege is a brazen ongoing fraud that targeted many senior citizens and small business owners," said Carolyn M. Welshhans, Associate Director in the SEC's Division of Enforcement. "Among other things, this emergency relief prohibits the defendants from soliciting new investors, freezes their assets, and orders them to provide a sworn accounting of their assets."
The SEC's complaint, filed in federal court in Miami on Nov. 14 and unsealed Monday, Nov. 18, charges the defendants with securities fraud and seeks certain emergency relief as well as permanent injunctions, return of allegedly ill-gotten gains with prejudgment interest, and civil penalties. The complaint names Burkholz's wife, Rhoda Burkholz, and Bianco's wife, Suzanne Bianco, as relief defendants.
Investors can learn more about Ponzi scheme red flags and check out the background of their investment professional by using the free and simple search tool at the SEC's Investor.gov website. Investors should be cautious of investment professionals who are not licensed or registered.
For further assistance please contact
SECURITIES AND EXCHANGE COMMISSION
801 Brickell Avenue, Suite 1800
Miami, Florida 33131
Telephone: (305) 982-6300
Facsimile: (305) 536-4154
https://www.sec.gov/regional-office/miami
LINK: https://www.sec.gov/news/press-release/2019-239
At-a-glance
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Business Details
- Location of This Business
- 5581 Wiles Rd, Ste. 502, Coconut Creek, FL 33073-4260
- BBB File Opened:
- 11/27/2019
- Licensing Information:
- This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.
- Related Businesses
- Contact Information
Principal
- Mr. Neil Burkholz, Manager
Other Contacts
- Mr. Frank Bianco, Manager
Customer Complaints
0 Customer Complaints
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