Losses On Servergy, Inc ? – Recovery Options for Investors

Losses On Servergy, Inc ? – Recovery Options for Investors

Losses On Servergy, Inc ? – Recovery Options for Investors 150 150 Robert Rex, Esq.

April 12, 2016-Fort Worth, Texas

The Securities and Exchange Commission (SEC) filed fraud charges against McKinney, TX based Servergy, Inc. , William E. Mapp III, Caleb J. White and Texas attorney general Warren K. Paxton, Jr. Link to complaint. 

The SEC alleges that from November 2009-September 2013 $26 million was raised through private offerings by Servergy Inc. from investors who were duped into believing that Servergy was generating sales on new groundbreaking server technology when, in reality,  the server technology was behind that of competitors and there were not any sales.

In a February 2013 Private Placement memorandum, Servergy’s co-founder and then CEO William Mapp, III, led investors to believe their new server, the Cleantech-1000, was revolutionary and in high demand, Servergy hired WFG Investments of Dallas to raise $20 million in that offering.

According to the SEC complaint Servergy made numerous misrepresentations and omissions in the private placement memorandum about the new server to investors. In addition, the SEC alleges that investors were misled as to the purported sales figures leading investors to believe the company was generating income.

Brokerage firms have a duty to investigate the companies they are recommending. Thorough due diligence would likely have revealed the false information being disseminated by Servergy and its promoters.

If you invested in Servergy, Inc.  you may be able to recover damages from WFG Investments or the brokerage firm where you purchased Servergy, Inc. Call to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

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Rex Securities Law

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