(The Center Square) – A Memphis-based investment group had its assets frozen after investors reportedly lost $6.3 million through the group.
The Tennessee Department of Commerce & Insurance’s Securities Division and the Tennessee Attorney General’s Office fought for a temporary injunction in the case against individuals Ali Raza Galani, Misam Abidi, and Anisha Abidi along with Star Credit Holdings LLC, Satori Credit Solutions LLC and NumisMe LLC.
Investors complained after losing through the STAR Investment Club and the purchase of NUME cryptocurrency token, which Galani and the Abidis fully owned and controlled.
The individuals were accused of breaking state securities law through fraudulent activity, misleading investors, misusing investor funds and not registering the securities, brokers, investment advisers and more through TDCI’s Securities Division as required.
“This is a prime example of how good cooperation between investigators at TDCI and our colleagues at the Tennessee Attorney General’s Office can help protect Tennessee consumers from investing their hard-earned money in unregistered investment funds or through unregistered digital investments being offered as a security,” TDCI Commissioner Carter Lawrence said in a statement. “I applaud the court’s decision to grant this temporary injunction so that more affected investors can be located and interviewed.”
TDCI is looking for investors who lost money in the scheme. Investors in 17 states reportedly lost $6.3 million, led by Wyoming investors losing over $2.4 million and California investors losing $1.14 million.
“Investors who might have lost money or otherwise been involved in these investments may be hesitant to come forward or may even be embarrassed by what happened,” TDCI Securities Division Assistant Commissioner Elizabeth Bowling said. “If you were an investor impacted by any of these named defendants, I ask that you contact our team today and share your experience so that the individuals causing financial losses to not only Tennessee investors, but investors across the country, might face the consequences for their actions.”
