FRAUDULENT PROMISSORY NOTES – RMC MEDSTONE CAPITAL, CARDIAC NETWORK and STEPHEN MICHAEL KOSUBINSKY
Zamansky LLC (“Zamansky”) announces that it is investigating fraudulent sales of promissory notes to investors by brokerage firms. Investors in the notes have report that they were sold to them as “safe” and “low risk” products that were conservative and consistent for an investor seeking capital preservation and a stable income. In reality, the promissory notes were highly speculative or fraudulent in nature and/or paid high fees to the brokerage firm which motivated the sales.
RMC Medstone Capital V and VI Notes
In September of 2011, RMC Medstone Capital V Note (“RMC Medstone”) investors received a Notice of Default advising them that their investments are now worthless. RMS Medstone issued approximately $18 million of these V Notes in private offerings under SEC Regulation D, and is now issuing VI Notes. Investors in the notes have reported that they were sold to them as low risk products consistent with safety and capital preservation. These representations were false as the Notes were highly speculative and should not have been sold to risk-averse, income-seeking investors.
Cardiac Network Promissory Notes
Cardiac Network Inc. (“Cardiac Network”) is a medical technology company that provides cardiac monitoring and diagnostic services to physicians. It offers the HeartOne Monitoring System, and the company appears to be worthless. Some financial advisors have been selling promissory notes to investors without obtaining approval for the sale, in violation of FINRA Rules against “selling away”. These notes are now likely worthless.
Stephen Michael Kosubinsky’s Promissory Notes
From 2003 to 2010, Stephen Michael Kosubinsky (“Kosubinsky”) sold fraudulent promissory notes to unsuspecting investors located mostly on Long Island. Kosubinsky was a purported financial expert and “honest advisor” with a financial planning firm, 21st Century Planning Inc., in Hauppauge, New York. Kosubinsky authored two books, ironically titled The Dirty Filthy Lies My Broker Taught Me and 101 Truths About Money & Investing. He used these books as a selling tool for potential investors, purporting to give clients candid advice, while vilifying the investment industry.
Kosubinsky sold investors “guaranteed” promissory notes that would mature in two to three years, and then “roll over” to a higher interest rate of 8%. In reality, the promissory notes did not exist. He disguised his scheme through fraudulently producing phony note certificates to investors, Plantrak “portfolio reviews,” and account statements. When his fraud was discovered, he took his own life. Investors have successfully recovered funds in securities arbitration cases against his brokerage firms, Triad Advisors, Inc., NFP Securities Inc. and Ogilvie Security Advisors Corp.
If you were an investor in any of these Notes, we may be able to recover your losses. Please contact investment losses lawyer Jake Zamansky at (212) 742-1414, or by email at email@example.com.