Allegations
Keith Schneider and [Third Party] were named in a civil complaint filed in the First Judicial District Court- Santa Fe County, New Mexico. The complaint related primarily to their activities in Wizard IP, LLC. ("Wizard"), a financial software development company founded 2012 with the purpose of developing active trading software with the intent of licensing to market professionals or used to manage or establish a future Hedge Fund or RIA for investment management. The Schneiders were managing members of Wizard, and the plaintiff was an investor in Wizard. The Schneiders were never served with the complaint. The case was dismissed before they were served. They were not aware that the case had been filed until after the repurchase described below had been consummated.
After several years of delays and technology development cost overruns, an investor in Wizard wanted out. In the Complaint, however, it was alleged that he had been induced into entering the partnership through false statements made in regards to the business prospects of the partnership and the suitability of the investment. The investor, despite numerous two-way communications, did not voice any complaints about suitability or prior to filing the complaint (which was never served on the Schneiders) in July 2015.
Mr. Schneider had received a request to rescind his investment from this investor. To avoid a dispute, Wizard repurchased the investor's $100,000 interest, paying him what he had put in, using company funds. Keith Schneider and [Third Party] did not personally commit any funds to the repurchase. The plaintiffs terminated and disclaimed their interest in Wizard as a result of the repurchase. The case was dismissed with prejudice by the [Customers].
Settlement Amount
$100,000.00
Broker Comment
Keith Schneider and [Third Party] were named in a civil complaint filed in the First Judicial District Court- Santa Fe County, New Mexico. The complaint related primarily to their activities in Wizard IP, LLC. ("Wizard"), a financial software development company founded 2012 with the purpose of developing active trading software with the intent of licensing to market professionals or used to manage or establish a future Hedge Fund or RIA for investment management. The Schneiders were managing members of Wizard, and the plaintiff was an investor in Wizard. The Schneiders were never served with the complaint. The case was dismissed before they were served. They were not aware that the case had been filed until after the repurchase described below had been consummated.
After several years of delays and technology development cost overruns, an investor in Wizard wanted out. In the Complaint, however, it was alleged that he had been induced into entering the partnership through false statements made in regards to the business prospects of the partnership and the suitability of the investment. The investor, despite numerous two-way communications, did not voice any complaints about suitability or prior to filing the complaint (which was never served on the Schneiders) in July 2015.
Mr. Schneider had received a request to rescind his investment from this investor. To avoid a dispute, Wizard repurchased the investor's $100,000 interest, paying him what he had put in, using company funds. Keith Schneider and [Third Party] did not personally commit any funds to the repurchase. The plaintiffs terminated and disclaimed their interest in Wizard as a result of the repurchase. The case was dismissed with prejudice by the [Customers].
