Legal Question in Investment Law in New York

Re: Sibling borrow money to invest in the bond market under false information

I am sorry to hear about your situation. If you have account documentation and proof that you and your co-siblings transferred funds to your investor siblings, then it might be enough to proceed for an injunction and asset freeze as you described. However, without a complete review of the documents and more background information, it is not possible (nor would it serve your interests), to render a legal opinion on the questions you have asked. There are other legal methods of attacking this issue which you might be interested in using.

One thing you have to be concerned about is the cost of litigation.

If I can be of any further help, please do not hesitate to contact me.

Re: Sibling borrow money to invest in the bond market under false information

Your problem is extremely complicated due to the need to prove many factors in order to get an injunction, among other things. Initially, you need to prove that the transfer of money was not a gift or loan or for some other reason, and I suspect there is nothing in writing to this effect. (The memo on checks or letters after the fact can be useful). You do have some strength in numbers in that 5 individuals can state what their intentions were in giving such a great deal of money to their 2 siblings. Also, the timing of the investments may show where the money went and from what sources. However, the fact that the accounts are not in any of your names is something you need to overcome.

Ultimately, you will have to convince a judge that not only would a freeze on accounts be necessary to prevent further losses or the withdrawal of the remaining funds from these accounts, but that there is a strong likelihood that you can and will win the case. You probably have to post a bond if you are granted the injunction (you will need collateral for a surety company to consider granting you an injunction bond. You certainly will have to explain why you did not act more quickly to obtain the extrordinary relief you are now requesting from the court. Concealment of the true facts and retaining an attorney experienced in these matters should excuse whatever delay there may have been in commencing the law suit.

The fact that no one is licensed may be used to gain assistance from governmental agencies and/or the U.S. Attorney's office or District Attorney. All of this is quite complex, expensive and time consuming, not only for the lawyers involved, but for you and the other 4 who suffered the losses. You should act without delay to try to recover whatever may be left in the accounts in question, and to enforce your rights if you will have any chance of recovery.

In any event, I hope this is at least of some help in deciding what you will do next.