Unregistered Florida Investment Advisor Charged With Defrauding Municipality
On December 1st, 2020, the Securities and Exchange Commission (SEC) published a press release announcing investment fraud charges against Eugenio Garcia Jimenez, Jr., an unregistered financial advisor who was most recently based in Orlando, Florida. Federal officials allege that Mr. Garcia Jimenez Jr. knowingly defrauded the municipality of Mayagüez, Puerto Rico out of nearly $9 million. The agency filed a civil complaint in the United States District Court of the District of Puerto Rico earlier this month. Below, our Miami investment fraud lawyers discuss the allegations against Eugenio Garcia Jimenez, Jr.
SEC Investment Fraud Complaint: Eugenio Garcia Jimenez, Jr. of Orlando, Florida
False Promises: Safe, Secure Ten Percent Return on Investment
According to the SEC complaint, Eugenio Garcia Jimenez, Jr. of Central Florida presented an investment plan to the municipality of Mayagüez in 2016. He promised the investors that he could invest nearly $9 million in funds, generating a ten percent annual return with zero risk to the principle. He presented a complex investment strategy focused on purchasing many different financial products.
The SEC believes that this unregistered investment advisor owned and operated several companies and that these investment entities were used to carry out the fraud scheme. Companies and entities that were named in the complaint include Eugenio Garcia Jr. & Associates, LLC, Mayaguez Economic Development Financial Strategies, Inc., M.A.G. Holdings, Inc., and TEGA Holdings, LLC.
Allegations: Misappropriation of $7.1 Million in Investor Funds
The SEC alleges that Mr. Garcia Jimenez, Jr. never carried out the proposed plan. Instead, the agency contends that he misappropriated more than $7 million in investor funds, transferring that money to himself, the aforementioned entities that he controlled, and some of his close personal associates. In order to execute the fraud scheme, Mr. Garcia Jimenez Jr. allegedly falsified financial records, including bank statements and brokerage account documents. As a direct consequence of his false promises and improper conduct, his client sustained significant investment losses.
Proposed Sanctions: Injunctive Relief and Civil Penalties
The SEC filed the investment fraud complaint in a federal court in Puerto Rico. As Mr. Garcia Jimenez, Jr. is charged with violating the anti-fraud provisions of U.S. securities law, the regulatory agency is pushing for all available sanctions and penalties. Along with other remedies, the SEC is petitioning the court for injunctive relief, disgorgement of ill-received financial gains, payment of appropriate interest, and civil financial penalties. They argue that unless he is restrained by a legal order, this unregistered investment advisor is likely to violate federal securities law again.
Schedule a Confidential Consultation With an Investment Fraud Attorney in Miami, FL
At Carlson & Associates, P.A., our dedicated Florida FINRA arbitration lawyers represent investors with honesty, integrity, and the highest degree of professionalism. If you suffered losses after working with an unregistered investment advisor, we are here to help. Get in touch with us today to arrange your confidential consultation. We provide legal advice to investors throughout South Florida, including in Miami-Dade County, Broward County, Palm Beach County, and Martin County.
Resources:
sec.gov/news/press-release/2020-299
sec.gov/litigation/complaints/2020/comp-pr2020-299.pdf