The allegations read: Respondent was named in customers' complaint that asserted the following causes of action: breach of contract and fraud in the inducement. Claimants alleged that respondents engaged in a fraudulent enterprise, involving millions of dollars of fraudulently sold private placements and a massive pump and dump scheme that led to criminal indictments. Claimants further alleged that, as part of a settlement agreement, respondent promised to use "best efforts" to sell certain of claimants' private placement securities but, ultimately, failed to do so.
