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SEC Issues Litigation Update: Agency Obtains Judgment in Civil Case Against a Florida-Based Investment Adviser

On November 9th, 2020, the U.S. Securities and Exchange Commission (SEC) released a litigation update in its case against David C. Coggins, his Florida-based company Coral Gables Asset Management, and two other relief defendants. In August, the federal regulator filed civil charges in the United States District Court for the Southern District of Florida. More recently, the SEC announced that it obtained a judgment against Mr. Cogggins and his company. Below, our Miami investment fraud lawyers provide an overview of the SEC’s litigation update.

Allegations: Coral Gables Asset Management Raised $1.85 million on False Pretenses 

Back in August, the SEC took emergency enforcement action to stop an alleged securities fraud scheme. The agency filed civil charges on the grounds that David C. Coggins improperly raised approximately $1.85 million through his investment advisory company, Coral Gables Asset Management. Mr. Coggins is a resident of Miami and his company also lists its principal place of business in Miami.

The SEC notes that Mr. Coggins raised money for Coral Gables Asset Management using a variety of different methods, including the sale of limited partnership interests and the private placement agreements. However, the SEC alleges that Mr. Coggins radically misrepresented the past performance and future prospects of his firm. As an example, investors were shown documentary “proof” that Coral Gables Asset Management has 36 straight months of gains. The SEC found those documents to be fraudulent—the majority of the time the fund suffered losses.

In addition, the SEC believes that Mr. Coggins siphoned off nearly $500,000 in investor capital for his own personal use. Among other things, the misappropriated funds were allegedly used to pay down personal debt, cover the car payments for a BMV, support a lavish lifestyle of shopping and travel, and pay off a divorce lawyer.

 SEC Judgment May Help to Provide Financial Relief to Affected Investors   

The litigation update confirms that the SEC obtained a legal judgment against David C. Coggins and his company Coral Gables Asset Management. Notably, two other companies owned and controlled by Mr. Coggins were also included as relief defendants. A relief defendant is a defendant not technically alleged to have committed wrongdoing, but who potentially received funds that were unlawfully obtained. In securities fraud cases, relief defendants are typically close family members of the alleged perpetrator or other companies/entities controlled by the alleged perpetrator. By naming relief defendants, the SEC is in a better position to pursue the maximum available financial relief for affected investors. 

Call Our Florida Securities Fraud Lawyers for a Confidential Case Evaluation

At ​Carlson & Associates, P.A., our Miami, FL securities fraud attorneys advocate for investors’ rights. If you or someone you know suffered monetary losses in a private placement fund, we are available to help. Get in touch with us right away to request your completely confidential initial consultation. We represent investors in Miami and throughout the entire region in South Florida.


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