Action against Defendants, an investment adviser firm and its two former principals, for alleged investor fraud. According to the SEC, Defendants advertised that certain funds would invest in a variety of instruments but instead invested in settlement advance loans to several of one Defendant principal’s class-action clients. The SEC also alleges that Defendants failed to disclose one of Defendant principal’s criminal history and investment adviser bar, and that one of Defendant principals defrauded investors by borrowing undisclosed personal mortgage loans from the funds, which he never repaid, and misappropriating investor funds.

SEC Complaint  

SEC Litigation Release