10.0David P Neuman
(720) 599-3505




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Dennis Karasik and Diversified Energy Group

Have you lost money investing with financial advisor Dennis Karasik from Parkton, Maryland? We are currently investigating allegations made against Dennis Karasik made by the Securities Exchange Commission (or SEC).  The SEC asked Karasik and a number of other individuals to cease and desist from selling securities of Diversified Energy Group, Inc.  The SEC also named Richard H. Scurlock III and his registered advisory firm, Retirement Tax Advisory Group Inc. (or RTAG, Inc.) from Lexington, Kentucky, as well as David B. Havanich Jr., Carmine DellaSala, Matthew D. Welch, Jose F. Carrio, and Michael J. Salovay.

It was alleged that Karasik, Scurlock, and a number of other individuals raised over $17 million in sales of bonds for Diversified Energy Group, a purported oil and gas company.  Unfortunately, the bonds defaulted, leaving investors with significant losses.  Moreover, some of the bonds were unregistered securities, in violation of securities rules and regulations.  It was also alleged that there were misrepresentations made about how well Diversified Energy Group was doing, in order to induce investors to invest more money.

Dennis Karasik was also previously barred from the securities industry by FINRA, the Financial Industry Regulatory Authority.  FINRA alleged that Dennis Karasik recommended that his clients invest in bonds offered by Diversified Energy Group.  FINRA claims that Karasik did not have approval from his respective firms to sell investments in Diversified Energy Group.  FINRA also alleges that Karasik lied about his involvement with Diversified Energy Group during FINRA’s investigation.

Dennis Karasik was a registered representative and financial advisor with H. Beck from January 2012 to February 2013, and he was also an advisor with Multi-Financial Securities Corp. (now part of Cetera Advisors, LLC) from June 2006 to December 2011.  H. Beck terminated Karasik’s registration with the firm after learning of these allegations.

Broker-dealers like Multi-Financial Securities Corp. and H. Beck have a responsibility to adequately supervise all representatives who are registered through their firm, including investments sold by their registered representatives.  Broker-dealers also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies.  When broker-dealers fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.

Our firm represents investors who have lost money through the negligent or fraudulent advice of financial advisors and investment advisors.  While we have offices in Denver and the Seattle area, we have represented investors all over the country.  If you have lost money through Dennis Karasik, Richard H. Scurlock III, or Diversified Energy Group and want to hear about ALL legal options, please visit https://www.israelsneuman.com/ and go to our CONTACT page or call us at 720-599-3505.

Click here to view SEC COMPLAINT:  Karasik – SEC Complaint

Click here to view FINRA AWC:  Karasik AWC

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.
10.0David P Neuman


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