Peter Rainaldi

Investors who claim they were swindled by a Bahamas-based stockbroking firm are preparing legal action in a bid to recover approximately $12 million in lost funds. The investors claim they were sold dubious stocks traded on the NASDAQ over-the-counter market by Equity Management Group Ltd., which operated from the Bahamas Financial Centre in Nassau.

Complaints from investors in several countries have been made against the Equity Management Group, a firm of stockbrokers based in the Bahamas. Several clients, including those from Spain, France, Switzerland and South Africa, have accused the company of misappropriating their funds, according to sources.