Investors Urged to Beware of Entities Demanding Upfront Payment to Recover Lost Funds

Summary Cease and Desist Order

TRENTON – Attorney General Matthew J. Platkin and the Division of Consumer Affairs (“Division”) today announced emergency action by the Division’s Bureau of Securities (“Bureau”) against a fraudulent online investment recovery scheme impersonating a broker-dealer.

In a Summary Cease and Desist Order issued today and effective immediately, the Bureau ordered the entities operating the website www.almaxfinancialsolution.com to stop impersonating a registered broker-dealer to scam investors into paying them to recover lost or stolen money and then failing to deliver on those promises, in violation of the state’s Uniform Securities Law.

“Asset recovery offers can be tempting to individuals hoping to recoup funds lost in investment scams,” said Attorney General Platkin. “The sad reality is that these offers are often nothing more than attempts to con victims into handing over more of their assets. Our Bureau of Securities is taking emergency action to shut down this unlawful operation and prevent the revictimization of investors who have already suffered significant losses.”

“In some cases, operators of asset recovery scams are associated with the scheme that defrauded the investors in the first place. These associates return to target their victims with a new scam,” said Cari Fais, Acting Director of the Division of Consumer Affairs. “We’re raising awareness of these scams and urging investors to be wary of anyone asking for upfront fees to recover lost funds.”

According to the Bureau, the persons behind the fraudulent website perpetrated their scheme under the assumed identity of a legitimate New Jersey-registered broker-dealer with which it has no affiliation. The fraudulent website claimed to advertise the services of a “recovery intelligence firm … committed to helping you recover your money at the shortest possible time frame and with the most cost-effective approach.”

The website lured in unsuspecting individuals seeking to recover lost or stolen funds and convinced them to submit their personal contact information. Once in contact with intended victims, the persons behind the website made false promises and deployed deceptive tactics to pressure individuals into sending cryptocurrency as payment for recovery services and related expenses.

In addition to listing phony addresses of its purported locations in New Jersey and the United Kingdom, the website listed the actual New Jersey address of the broker-dealer it was impersonating. To further deceive investors, the website used phony testimonials from purported clients and stock photos bearing phony names and titles of purported firm leaders.

In April 2023, the www.almaxfinancialsolution.com website was suspended by its web host due to abusive service. The website was later registered and hosted by a different domain service before once again becoming inactive sometime after April 1, 2024. The Bureau’s action today orders the shutdown of the website and puts the investment community on alert to these unlawful operations.

“This case illustrates the lengths to which scammers will go to trick investors into throwing good money after bad to recoup their losses and the lengths to which investors will go to get their money back,” said Elizabeth M. Harris, Chief of the Bureau of Securities. “We urge people to approach asset recovery offers with extreme caution. Thoroughly research any firm or agency before giving them your personal information and never pay money up front. Any demand for advance fees is a huge red flag that you’re dealing with a scammer.”

To learn more about spotting and avoiding these types of investment recovery scams, visit the website of the Financial Investment Regulatory Authority (“FINRA”) at https://www.finra.org/investors/insights/recovery-scams.

The Bureau’s investigation was handled by Deputy Bureau Chief Amy Kopleton, Investigator Richard Pearsall of the Enforcement Unit, and Supervisory Investigator Arlene Ferris-Waks of the Complaint and Investor Education Unit of the Bureau of Securities, within the Division of Consumer Affairs.

The Bureau is charged with protecting investors from investment fraud and regulating the securities industry in New Jersey. It is critical that investors “Check Before You Invest.” Investors can obtain information, including the registration status and disciplinary history, of any financial professional doing business to or from New Jersey, by contacting the Bureau toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378), from outside New Jersey at (973) 504-3600, or by visiting the Bureau’s website at www.NJSecurities.gov. Investors can also contact the Bureau for assistance or to raise issues or complaints about New Jersey-based financial professionals or investments.

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