McGuireWoods’ Ponzi Litigation team launched its Ponzi Perspectives blog in early 2021.  Since that time, our focus is to track key cases and decisions that have the potential to influence controlling law on Ponzi-related issues.  The blog also offers analysis on practical considerations when defending Ponzi litigation.  This 2022 mid-year round up summarizes the new

Securities and Exchange Commission v. BNZ One Capital, LLC, et al. was filed in the United States District Court for the Central District of California on October 28, 2021 claiming Defendants violated the antifraud provisions of the Securities Act,  the Securities Exchange Act,  and Rule 10b-5 thereunder, as well as the registration provisions of the Securities Act. The SEC also brings claims against individual Defendants Barber and Zimmerle for violations of the broker-dealer registration provisions of the Exchange Act and accuses them of being secondarily liable for BNZ’s fraud as control persons pursuant to the Exchange Act.

Continue Reading New Complaint – SEC v. BNZ One Capital, LLC, et al.

IMG Memorial Fund 1 was filed in the Southern District of New York on April 14, 2021, alleging that various defendants, including individuals and investment funds, violated federal securities laws and the common law through their use of a proprietary trading platform.  Specifically, the complaint alleges violations of Sections 10(b) and 20(a) of the Securities Act, along with common law claims for breach of fiduciary duty and negligent misrepresentation.

Plaintiff IMG Memorial Fund 1 is a family investment fund.  Defendant Jeffrey Spotts is the principal individual who created various investment funds, including the Prophecy Special Opportunities Fund and Prophecy Special Ops GP LLC (collectively, “Prophecy”).  Defendant Vantage Consulting Group is an investment advisor with an ownership interest in defendant investment fund First Landing Fund LLC, which is co-controlled by individual defendants, Mark Finn and David Schippers (collectively, “First Landing”).

Continue Reading New Complaint – IMG Memorial Fund 1, LLC v. First Landing Fund, LLC, et al.