Four Investment Entities Charged In Relation To $2.6 Million Securities Fraud Scheme In Florida
On September 1st, 2022, the Securities and Exchange Commission (SEC) announced securities fraud charges against four different investment entities:
- 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