This week a federal jury in Idaho convicted four former executives of failed real estate company DBSI, Inc. on various counts including wire fraud and securities fraud. DBSI was a real estate property investment company that was operated as a Ponzi scheme. Like so many other Ponzi schemes, DBSI collapsed in 2008 amid sharp declines in the real estate and securities markets.
DBSI President Douglas Swenson was found guilty of 44 counts of securities fraud and 34 counts of wire fraud, Secretaries Jeremy Swenson and David Swenson were convicted of 44 counts of securities fraud, and company attorney Mark Ellison was convicted of 44 counts of securities fraud.
DBSI went into bankruptcy in 2008. Subsequently, a private action trust was created to pursue claims against various third-parties on behalf of DBSI investors. Blau & Malmfeldt represented numerous investors in arbitration actions against securities broker-dealer firms that failed to conduct adequate due before selling securities In DBSI and related entities to investors.
Blau & Malmfeldt is a law firm based in Chicago, Illinois that represents investors in securities, commodity futures, and shareholder rights disputes. Contact us to learn more about the services we offer.