The securities litigation law firm of Chapman & Associates initiated legal action in July, 2009, on behalf of investors victimized by Robert Copeland’s scheme, perpetrated in Georgia. In early 2009, Georgia attorney Robert P. Copeland pleaded guilty to perpetrating a $35 million investment scheme that victimized close to 140 investors over a five-year span.

In the statement of claims, filed in FINRA arbitration* on behalf of Copeland investors, the Chapman & Associates attorneys allege that two large financial institutions assisted in the perpetration of the Copeland scheme by approving the sale of Copeland’s unregistered investments and allowing its brokers to sell such investments to the public. The two institutions had a duty to adequately vet the Copeland investments before approving them. Once they approved such sales, the two financial institutions had a duty to reasonably supervise their sales, according to the statement of claims.

Copeland pretended to be a successful real estate attorney and made representations to investors regarding his stellar investment performance in distressed properties. Copeland falsely claimed returns of between 15 and 18 percent annually for his investors. In reality, the investors’ funds were commingled, and used to make payments to earlier investors and support Copeland’s lavish life style.

Copeland was able to perpetrate his scheme as long as new investors deposited money with him, according to John Chapman, a securities attorney. When the flow of money slowed down, he became unable to pay the promised returns to earlier investors, and his scheme collapsed, leaving hundreds of victims with nothing but fictitious account statements and paper profits.

Click here to read important statements and disclosures regarding this case. Due to the confidential nature of FINRA proceedings we will continue to send email updates to our clients about this case.

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* proceedings in FINRA/NASD arbitration, including the identities of the parties, are confidential in nature.