BOCA RATON, Fla., May 23, 2013 (GLOBE NEWSWIRE) -- Silver Law Group (www.silverlaw.com) is pursuing claims against multiple precious metals firms for selling precious metals (gold, silver, platinum, palladium, etc.), using false and misleading claims of easy profits with little risk, which actually expose investors to excessive fees and commissions. Silver Law Group recently filed on behalf of two investors a federal court action against:
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WorldPMX, Inc. ("WorldPMX"), a South Florida-based precious metals broker-dealer which is owned and operated by Sean McCabe and which allegedly handles precious metals transactions for individual investors,
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Amerifirst Trading Corp. ("Amerifirst"), another South Florida-based entity which is owned and operated by C. Leo Smith, and
- Worth Group, Inc. ("Worth Group"), which acted as both the clearing firm through which WorldPMX funneled its precious metals transactions and as the back room operators of WorldPMX.
According to the Complaint, utilizing deceptive and misleading tactics, WorldPMX, Amerifirst, and Worth Group avoid revealing to each customer that over 45 percent of the money the customer pays to these companies is generally used to pay fees and commissions. The CFTC recently warned investors that firms have charged phony interest and fees that diminish account equity -- charges that can easily eliminate an investor's ability to profit or simply break-even on such investments.
In the lawsuit, the plaintiffs allege WorldPMX, Amerifirst, and Worth Group pitched their precious metal products as safe investments assuring substantial returns and little risk of loss of the investors' principal. In fact, WorldPMX does not deal in physical metals. Despite assurances to clients to the contrary, they do not store physical metals for or on behalf of customers. The Complaint alleges the Defendants charge customers exorbitant and deceptive fees and commissions for purchasing metal and for financing loans to buy precious metals, all of which are paper transactions.
Silver Law Group is representing customers involved in precious metals transactions and is attempting to recover their investment losses in legal proceedings. The firm also maintains an informative website for precious metal investors at www.preciousmetalfraud.com. If you wish to discuss this press release or have any information about our investigation of precious metal investments, contact Scott Silver, Managing Partner of Silver Law Group, at 1-855-755-4799 or ssilver@silverlaw.com. We represent clients nationwide from our headquarters in South Florida and have satellite offices in New York City and Washington, D.C.
Scott Silver, Managing Partner – We represent institutional and retail investors in investment fraud and class action litigation, with extensive experience in arbitration before FINRA, NFA, and AAA. Scott Silver routinely serves as counsel to receivers and trustees in matters relating to the recovery of investor losses.
David Silver, Co-Founder – A former Patton Boggs lawyer from Washington, D.C. who advocates in an innovative and aggressive manner on behalf of clients who have been harmed across the United States.