'Attorney-Broker' Ponzi Suit Belongs In State Court

‘Attorney-Broker’ Ponzi Suit Belongs In State Court

A lawsuit involving an attorney-broker who allegedly ran a Ponzi scheme if facing push back after the suit had been removed from federal court. Two real-estate investors told a Texas federal judge that the case was dismissed only to delay the proceedings, and should return to the state court where the claim was initially filed. The lawsuit in question accuses Christopher Dawkins, an attorney-broker, of operating a Ponzi scheme in Texas. 

Court Suit Removed from Federal Court Back to Delay Proceedings  

According to new sources, the suit was removed from federal court to avoid a hearing for a restraining order and the removal of Dawkin’s property. Hence, there is an expedited motion to remand that was filed last Thursday. 

Real Estate Investors Fight to Move Case 

Brandon Williams and Julian Harvey, two real estate investors, asked a federal judge to reconsider sending the case back to the district court in Harris County, Texas. They also demanded the court to award them the attorney fees incurred for dealing with what they labeled, a “sideshow” and a “delay tactic.” 

The federal Securities Act of 1933 does not allow removal to federal court if the case is brought in state court that has correct jurisdiction, Williams and Harvey said. 

John Hurtad Rojas of Vilt & Associates PC, who is representing Williams and Harvey, also stated that the notice of removal was filed while he was on his way to court for the injunction and receiver hearing. 

Nonetheless, Rojas believes there is a 100% chance the federal judge will grant Williams and Harvey’s motion to remand. And if it stays in federal court, they will proceed with the case. 

Case Revolves Around Alleged Texas Ponzi Scheme 

It is important to note that the investors filed the lawsuit back in September, alleging Dawkins (along with his wife) operated a Ponzi scheme for over five years. According to the complaint, throughout this time, they received more than $2 million from 35 investors.

Dawkins told investors the funds would be used to buy, renovate and develop pieces of land in the Houston area. As a result, those who invested in the project would receive dividends of 10% to 50%. Nonetheless, according to the complaint, he funneled the money into a personal bank account. 

C Lugrand-Dawkins Enterprises LLC filed the notice of removal to federal court in November. 

The lawsuit against Dawkins alleges violations of the Texas Securities Act along with fraud, conspiracy, breach of fiduciary duty, and deceptive trade practices. Williams and Harvey could have alleged federal violations, but they decided against it.

Speak with a Ponzi Scheme Attorney

The securities fraud attorneys at Dimond Kaplan & Rothstein, P.A. (DKR) bring civil court cases and arbitration cases on behalf of investors who suffered financial losses in Ponzi schemes throughout the United States. Our interest is in helping our clients recover their money.

If you are looking for a Ponzi scheme attorney to review your rights and options, the Ponzi scheme lawyers at Dimond Kaplan & Rothstein, P.A. represent individual and institutional investors who have lost money as a result of Ponzi schemes. We will aggressively pursue claims to recover your losses or damages. 

Contact Dimond Kaplan & Rothstein Today 

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