We’ve been following an interesting case of a former stock broker. he was in the securities industry for many years, and had many sanctions, liens, withheld crucial information in filings, failed to make filings, and was ultimately barred from the industry by FINRA. Now Louis Ottimo of Cold Spring Advisory files Chapter 7 Bankruptcy
Mr. Ottimo has had been attached to controversy most of his career; he’s been sanctioned, been sued, had liens filed, and was attached to many companies that he ran, either on paper or not, that have all either filed bankruptcy and/or been sanctioned by the industry regulatory body (and other agencies).
So he reappeared again as a ‘consultant’ for Cold Spring Advisory, a stock loss recovery firm that goes after brokerage companies that cause investors to lose investments because of their misbehavior.
It seems odd that anyone would trust, and pay upfront fees to, a company to go after misbehaving firms — when the ‘de facto’ boss behind Cold Spring Advisory was himself barred from the securities for misrepresenting facts to investors, among other things.
According to a recent article it was alleged that Louis Ottimo:
- is the sole source of their (Cold Spring Advisory) client lead list;
- engaged with and choose the lawyers that would represent said clients;
- generated the checks to pay such lawyers;
- that he alone interviewed all clients and their stock portfolios; and;
- that he alone determined the up front fees to charge said clients.
The article concluded that “By this account, whether he was paid as an employee or a consultant, nonetheless made him essentially a de facto employee of the company.”
Louis Ottimo of Cold Spring Advisory Files Chapter 7 Bankruptcy
This seems to be an interesting case in deed, which gets more complicated by the day.
if you have a stock loss dues to broker misconduct, we suggest that you do your homework and research credible firms to represent your case. Cold Spring Advisory — despite all their press releases of being the biggest and best stock loss recovery firm out there — seems to have too much convoluted complexities to entrust with your case, let alone pay them up front.