SAN FRANCISCO – A Los Gatos man is suing a company over claims of securities fraud.
Don Ferrera filed a complaint on Feb. 9 in the U.S. District Court for the Northern District of California against TRMHC Inc., citing fraud and concealment and violation of Federal Securities Laws.
According to the complaint, the plaintiff alleges that he transferred his shares to the defendant under a stock purchase agreement. Ferrera also claims that he was told by the company's presidents that stock was worth $3.5 million and it would not be selling.
The plaintiff holds TRMHC Inc. responsible because the defendant allegedly made false representations of the stock prices to the plaintiff in order for it to sell them his shares. The defendants could and were planning to sell the company for a higher amount after they were able to obtain the stock from the plaintiff at a much depressed price, the complaint states.
The plaintiff seeks the following: return of the $500,000 he claims he lost from the misrepresentations allegedly made by the defendant, costs of the suit and any other relief the court deems just and proper. He is representing himself.
U.S. District Court for the Northern District of California Case number 5:16-cv-00655-HRL