LOS ANGELES, Jan. 27 /PRNewswire/ -- On January 8, 2010, the SEC filed an action in the United States District Court for the Central District of California against NewPoint Financial Services, Inc., John Farahi, Gissou Rastegar Farahi and Elaheh Amouei for securities fraud targeting the Iranian community in the Los Angeles area. As a result, the Court issued a temporary injunction freezing the assets of NewPoint Financial Services, Inc. and John Farahi and placing NewPoint Financial Services Inc. into receivership to prevent the further destruction of documents and assets.
The SEC action followed a separate action that had been filed earlier in the Los Angeles Superior Court by Bank of America in November of 2009 against Mr. Farahi, NewPoint Financial Services, Inc. and other NewPoint related companies. In December of 2009, the Superior Court issued a $7,000,000 plus attachment lien in favor of Bank of America, which went unopposed by Mr. Farahi.
Los Angeles attorney Farhad Novian, who is now representing certain investors against Mr. Farahi and several NewPoint related entities, is in the process of determining possible sources of recovery for losses suffered by investors due to the wrongful conduct of John Farahi and the NewPoint entities. According to Mr. Novian, one such source could be in the form of insurance coverage for losses suffered due to wrongful actions by NewPoint as a broker dealer. He indicates that such channels of recovery were in fact made available to some of the investors who lost their investments in the scheme organized by Bernie Madoff.
At this time, Mr. Novian's law firm, Novian & Novian LLP, has sought to coordinate with the SEC to allow for the filing of claims by certain affected investors and to determine if such claims will qualify for coverage to compensate investors for losses suffered by the conduct alleged in the SEC complaint.
If you invested funds with John Farahi, NewPoint Financial Services, Inc. NewPoint Securities LLC or any of their affiliates and suffered losses to your investment due to their wrongful actions, Mr. Novian advises that you should immediately consult with an attorney to explore possible sources of recovery that may become available in this situation.
SOURCE Novian & Novian, LLC