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In this case, the SEC alleged that defendants Grabarnick and Shiner promoted investments in unregistered LLP units to the public through bulk e-mails and internet websites, generating “leads” which they sold to defendants LaBarre and Peck. LaBarre and Peck, in turn, allegedly used boiler room sales tactics to sell the units. The partnerships were purportedly going to become operational electric companies, positioned to take advantage of deregulation in California, but none ever did. More than 580 people nationwide who invested over $10 million were left holding worthless LLP units or delisted penny stock.