HOUSTON — An investor claims he was fraudulently sold a high risk investment by an unlicensed firm and financial advisor in a company that later came under SEC investigation for fraud.
Scott Donaldson, individually and on behalf of his individual retirement account filed a complaint March 8 in Harris County District Court against Raphael Vallier, Terry Williams and INF Solutions LLC alleging violation of the Texas Securities Act, negligent misrepresentation and other claims.
Donaldson, according to his complaint, sought financial investment advice from Vallier who claimed to be a financial professional through INF Solutions in 2019. He claims he asked Vallier for low risk investments for a 55 year old who was nearing retirement. Donaldson alleges Vallier recommended the investment of $400,000 into "Deeproot 575 Fund" which would pay a seven percent annualized return over a five-year period and was told it had "conservative risk tolerance."
He further alleges the investment funds were to be held in his IRA, were supposed to accrue in the account and that for several years, he had no reason to believe the investment was suspect until he received notice from the SEC in August of 2021, that Deeproot defrauded nearly 300 investors of about $58 million. Donaldson claims INF was not registered with any U.S. or Texas authority to sell securities and that the defendants made false representations about the risks of his investment as well as their experience, knowledge and expertise.
Donaldson seeks monetary relief of more than $400,000, interest, trial by jury and all other just relief. He is represented by Samuel Edwards and Ryan Cook of Shepherd, Smith, Edwards & Kantas LLP in Houston.
Harris County District. Court case number 2022-13963