Notable litigation filed during August 2023 includes: (1) SEC v. Rocha; (2) Legum v. Garfinkel, et al.; and (3) SEC v. Conn. Jr.
The SEC filed suit against the schemer defendant for losses arising from an alleged Ponzi wherein the defendant promised to invest the
Chan v. Anthony, et al. was filed in the District Court for Denver County, Colorado on March 1, 2022, asserting claims under the Colorado Securities Act for securities fraud, investment advisor fraud, unlicensed broker/dealer activity, unlicensed investment adviser activity, and unregistered securities.
Tung Chan (“Chan”), Colorado’s Securities Commissioner, brought this action against Defendant David Anthony (“Anthony”) and nine unlicensed investment companies that he owned and operated (collectively with Anthony, the “Defendants”). Chan also included Anthony’s wife as a relief defendant to claw back funds from the scheme used for the Anthonys’ personal expenses.Continue Reading New Complaint – Chan v. Anthony, et al.
Mills v. Trustmark National Bank, et al. was filed in the Southern District of Mississippi on August 19, 2021 by a receiver appointed on behalf of companies engaged in a scheme to defraud investors by producing false deeds for the purchase and sale of timber.
Plaintiff Alysson Mills (“Plaintiff”) is the Receiver for Arthur Adams (“Adams”) and his company turned Ponzi scheme Madison Timber Properties, LLC (“Madison Timber”). The defendants are Trustmark Corporation d/b/a Trustmark National Bank (“Trustmark”), Southern Bancorp Bank (“Southern”), Riverhills Bank (“Riverhills”), Bennie Butts (“Butts”), and Jud Watkins (“Watkins”) (collectively, “Defendants”). Butts and Watkins were employees of Trustmark and Riverhills during the alleged Ponzi scheme.Continue Reading New Complaint – Mills v. Trustmark National Bank, et al.
Plaintiff Surefire Dividend Capital, LP (“Plaintiff”) filed Surefire Dividend Capital, LP v. Industrial and Commercial Bank of China Financial Services LLC in the Supreme Court of New York for the County of New York on April 15, 2021, claiming at least $46,598,676.84 in money damages, along with its costs and attorneys’ fees. Specifically, the complaint alleges claims for aiding and abetting fraud and aiding and abetting breach of fiduciary duty against Defendant Industrial and Commercial Bank of China Financial Services LLC (“ICBC”).
Plaintiff is an entity investor in Broad Reach Capital, LP (“Broad Reach”)—a purported hedge fund allegedly turned Ponzi-scheme ran by Brenda Smith (“Smith”). The defendant served as the clearing broker for Broad Reach, maintained several accounts on behalf of Broad Reach, and allowed many transfers from the Broad Reach accounts to other accounts controlled by Smith, both internally and externally.Continue Reading New Complaint – Surefire Dividend Capital, LP v. Industrial and Commercial Bank of China Financial Services LLC