Investor is Suing for Investment Losses Allegedly Caused by Carlos Hurtado and Raimundo Dias

The Riera Law Firm is currently investigating Carlos Hurtado of Weston, Florida, current Chairman and former CEO/President of NxGen Brands, Inc., and Raimundo Dias of Delray Beach, Florida (aka Ray Dias and Raymond Dias), former broker (CRD#: 2614994), regarding their participation in the offering of NxGen Brands penny stocks. NxGen Brands owns and operates Leafywell that purports to be in the business of developing cannabinoid drugs for medical treatment.

Riera Law filed claims on behalf of an investor who was solicited by Hurtado and Dias to purchase shares of NxGen Brands. The claim filed alleges that Hurtado and Dias lured the investor to invest in NxGen Brands under false pretenses stating that the funds would be strictly used to pay for digital media. The claim also alleges that Hurtado and Dias misrepresented the speculative, high-risk and illiquid stock as a safe investment and dangled the promise of substantial wealth creation. Instead, the investment was illiquid, and suffered from significant conflicts of interest. The claim further alleges that Hurtado and Dias failed to disclose that penny stocks may trade infrequently – which means that it may be difficult to sell penny stock shares once you have them.

The claim alleges that Dias was the person in charge of Business Development at NxGen Brands, who was responsible for raising money through investors. Hurtado and Dias allegedly concealed Dias’ role at NxGen Brands and that Dias had violated the securities laws and regulations and was prohibited from offering or selling unregistered shares of securities.

In November 2016, the SEC concluded that Dias willfully violated the registration provisions of the Securities Act, Sections 5(a) and 5(c), which prohibit any person from using the mails or any means or instrumentality of interstate commerce to sell a security when a registration statement is not in effect for that security, or to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security when a registration statement has not been filed as to such security. As a result, the SEC ordered Respondent Dias to cease and desist from committing or causing any violations and any future violations of Sections 5(a) and (c) of the Securities Act. The SEC also ordered Dias to pay disgorgement and prejudgment interest of $42,499, and a civil money penalty of $45,000. See OTC Global Partners, LLC and Raimundo Dias, Securities Exchange Act Release No. 34-79300 (Nov. 14, 2016).

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“Investors are entitled to accurate and complete information about how proceeds from private offerings will be used, and the identity and intent of people who control the company trading on OTC Markets,” said Jorge Riera, Riera Law Firm Managing Partner and attorney. “We are investigating any other claims for others who may have suffered losses and will vigorously pursue those who dump microcap shares on an unsuspecting public.”

Investors who were sold risky investments may have a right to file a claim to recover their losses. The Riera Law Firm represents investors on a contingency fee basis (no fee if no recovery) and offers free and confidential claim reviews and consultations. The firm announced it is still investigating further claims and accepting new clients.

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