SEC Charges: Former Registered Investment Advisor Darryl Matthew Cohen 

Darryl Matthew Cohen first registered as an investment advisor (RIA) with FINRA in 1997. During his professional career, he was associated with Merril Lynch, Wells Fargo Advisors, and Morgan Stanley. According to the complaint filed by the SEC, Mr. Cohen engaged in securities fraud between October of 2017 and April of 2020, while he was a registered representative of Morgan Stanley.

In the complaint filed in the United States District Court for the Southern District of New York, the federal agency contends that former Morgan Stanley financial advisor Darryl Matthew Cohen defrauded three former NBA players. Among other things, Mr. Cohen is accused of using his clients’ funds without their understanding or authorization.

 Why Professional Athletes are At Risk of Being Targets of Investment Fraud 

Professional athletes are often seen as the epitome of success, with exceptional physical abilities and true dedication to their craft. However, they are not exempt from the risk of falling victim to investment fraud. In fact, professional athletes are at a higher risk of being targeted by unscrupulous investment schemers. Here are several reasons why:

• High Earnings: Professional athletes often earn substantial amounts of money in a relatively short period of time. High earnings may attract fraudsters who seek to take advantage of their financial situation and coerce them into questionable investments.
• Public Face: Professional athletes are celebrities. They are known to the public and their salaries are public information. Unfortunately, this can make them a target of investment fraud. The high profile status of professional athletes may put them at risk.
• Trust in Advisors: Athletes commonly rely on a network of advisors, such as agents and financial planners, to manage their finances. However, these advisors can sometimes have ulterior motives and may guide athletes towards fraudulent investments for personal gain.

Suspicions of investment fraud should always be followed-up with in a proactive manner. If you believe you suffered losses because of the improper conduct of an investment advisor, a top Miami, FL investment fraud attorney can help.

 Get in Touch With Our Miami Financial Advisor Fraud Attorney Today

At ​Carlson & Associates, P.A., we are dedicated to protecting the rights of investors. If you or your loved one is a professional athlete who was the victim of investment fraud, we are more than ready to help. Contact our securities fraud team today for a fully confidential, no obligation case review. Our firm provides securities fraud representation in Miami and throughout Southeast Florida.

Source:

sec.gov/news/press-release/2023-60

SEC Asset Freeze: Jack C. Ridall and Gus Capital, LLC 

The SEC contends that Jack C. Ridall used the investment firm Gus Capital, LLC to raise approximately $750,000 from at least four different investors starting in December of 2020. Funds were raised on the grounds that the more than $100 million under management. Notably, actual and prospective investors were shown documentation from a major U.S. law firm confirming an “audit” of the funds under management. However, the SEC alleges that the law firm report was a forgery. In reality, the SEC contends that Miami-based Gus Capital, LLC had no legitimate assets under management. Further, the SEC alleges that investor money was not actually invested at all.

 SEC Seeking Full Range of Available Penalties 

In filing a complaint in the United States District Court for the Southern District of Florida, the SEC is seeking the full range of available sanctions and penalties against Jack C. Ridall  and Gus Capital, LLC. The SEC contends that Mr. Ridall and Gus Capital, LLC violated federal securities laws. The federal agency has already obtained an emergency asset freeze. In addition, the SEC is seeking all appropriate penalties, potentially including:

• A permanent injunction;
• Disgorgement of ill-gotten proceeds; and
• Civil monetary penalties.

Mr. Ridall’s Wife Named as a Relief Defendant 

The SEC has named Shannon A. Sharpe—the wife of Jack C. Ridall—as a relief defendant. The SEC contends that she received more than $90,000 in investor funds for no legitimate purpose. A relief defendant is a person or entity that is named as a defendant in a securities fraud lawsuit, but who has not necessarily committed any wrongdoing.

A relief defendant is included in the lawsuit because they are believed to have received ill-gotten gains from the fraud, and the court may order them to return those funds to the investors who were harmed by the fraud. They are not considered a primary defendant and are not liable for the fraud but for the illegal proceeds received.

 Set Up a Confidential Consultation With a Top Miami Financial Advisor Fraud Lawyer

At ​Carlson & Associates, P.A., we are dedicated to protecting the rights of investors. If you or someone you know suffered losses due to financial advisor fraud, our attorneys can help. Give us a phone call now or send us a direct message to arrange your fully private case review. We provide investment fraud representation to investors in Miami and throughout Southeast Florida.

Source:

sec.gov/litigation/litreleases/2023/lr25624.htm

• Archer Capital Management Group;
• Archer Growth Fund;
• HDR Management LLC; and
• Silvermoon Group LLC.

In this blog post, our Miami financial advisor fraud lawyer puts together a detailed overview of the latest information contained in the SEC’s litigation release.

SEC Complaint: At Least $2.6 Million Defrauded from Nearly Two Dozen Investors 

The Securities and Exchange Commission (SEC) filed a complaint in the United States District Court for the Southern District of Florida. The primary defendants are Archer Capital Management Group; and Archer Growth Fund. The SEC has also named HDR Management LLC and Silvermoon Group LLC as suspected related entities.

According to the allegations raised by the SEC, the defendants engaged in a securities fraud scheme between December of 2019 and December of 2020. The investment opportunity was primarily promoted to the public through the website: www.archerfund.com. The operators of the scheme purchased Google-based advertising to push their scheme to investors.

The SEC contends that investors were promised safe annual returns of 47 percent. In total, at least 20 investors—many from Florida—invested within the fund. Altogether, the investors put in nearly $2.6 million into the investment project. These investors were promised that the fund was operated by an experienced team of talented financial professionals.

An Outright Fraud: There Was No Archer Capital Fund 

According to the allegations raised by the SEC, this was an especially brazen securities fraud scheme. The SEC believes that the Archer Capital Fund never actually existed at all. Instead, the money that was invested was simply siphoned off and effectively stolen by the perpetrators. The SEC alleges that investor funds were misappropriated for the personal use of the fraudsters.

The SEC is Taking Enforcement Action—Fraudsters Not Yet Identified 

The SEC is taking immediate enforcement action to put a stop to any further fraud on the part of Archer Capital Management Group, Archer Growth Fund, HDR Management LLC, Silvermoon Group LLC, or any other connected investment entities. The federal agency is seeking a permanent injunction against all parties, disgorgement of ill-gotten funds and financial restitution for affected investors, and payment of pre-judgment interest.

Notably, the SEC has yet to identify the individuals who were responsible for the multi-million dollar securities fraud scheme. A more comprehensive investigation is still underway to identify any people involved in the investment fraud scheme and to protect the legal rights and financial interests of investors.

 Consult With a Securities Fraud Lawyer in Southeastern Florida

At ​Carlson & Associates, P.A., our Miami securities fraud lawyers put in the time, resources, and attention to detail to protect the rights of investors. If you sustained investment losses because of the material misrepresentations of a broker, brokerage firm, or unregistered advisor, we are ready to help. Call us now for your strictly private case evaluation with an experienced attorney.

Source:

sec.gov/litigation/litreleases/2022/lr25495.htm

SEC Charges: Unregistered Brokers Joseph Salvatore DeVito and Dean Anthony Esposito 

In the United States District Court for the Southern District of Florida, the SEC filed securities fraud charges against Joseph Salvatore DeVito and Dean Anthony Esposito. Mr. DeVito and Mr. Esposito are both listed as residents of Palm Beach County, Florida. The complaint alleges that the Florida men acted as unregistered brokers, solicited investment for unregistered securities, and unlawfully

deceived investors both about the nature of financial products and about their personal history. The SEC states that the securities in question—an offering by a company called Property Income Investors LLC (PPI)—were pushed on and sold to investors through aggressive cold calling tactics.

Property Income Investors LLC (PII) Was Previously Cited in Securities Fraud Charges 

In announcing the securities fraud charges against unregistered Florida brokers  Joseph Salvatore DeVito and Dean Anthony Esposito, the SEC noted that a securities fraud case is already pending against the investment entity, Property Income Investors LLC (PII). In June of 2021, the SEC filed securities fraud charges against PII and several other companies. The case against PII was also brought in a federal court in South Florida.

According to the allegations in that securities fraud complaint, PII raised more than $9 million from at least 156 different investors. Many of the investors were Florida residents. PII marketed itself as being an investment entity that brought and managed multi-family properties in South Florida. However, the SEC contends that millions of dollars in investors funds were misused and misappropriated by the owners and operators of PII.   

SEC is Seeking All Appropriate Sanctions and Remedies 

In the charges filed in the federal court in South Florida, the Securities and Exchange Commission is seeking all appropriate sanctions and remedies. Among other things, the proposed penalties against Joseph Salvatore DeVito, Dean Anthony Esposito, and Property Income Investors LLC (PII) include:

• Permanent injunctions;
• Penny stock bans for both individuals;
• Officer and director bans for individuals;
• Disgorgement of ill-gotten gains;
• Payment of prejudgment interest; and
• Civil financial sanctions.

Schedule a Confidential Consultation With an Unregistered Broker Attorney 

At ​Carlson & Associates, P.A., our Miami unregistered broker lawyer fights relentlessly to protect the best interests of investors. If you suffered major financial losses because of the poor practices of an unregistered broker, we are ready to help. Reach out to us by phone or connect with us directly online to set up your confidential case evaluation. With a law office in Miami, we handle unregistered broker claims throughout Southeastern Florida.

Resource:

sec.gov/litigation/litreleases/2022/lr25363.htm