SEC Charges Miami Investment Advisor And Company In Fraud Scheme
On January 18th, 2023, the Securities and Exchange Commission (SEC) confirmed emergency enforcement action, obtaining an asset freeze against Miami financial advisor Jack C. Ridall and investment firm Guss Capital, LLC. The SEC alleges that Mr. Ridall and the firm took in approximately 750,000 from at least four different investors on fraudulent grounds. An additional individual, Shannon A. Sharp, was named as a relief defendant. In this article, our Miami financial adviser fraud attorneys discuss the charges from the SEC in more detail.
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
