CLEVELAND, April 15, 2021 / PRNewswire / – A Registered Investment Adviser (“RIA”) is the subject of a complaint filed by investor rights attorneys with Goldman Scarlato & Penny law firm on behalf of an investor in the Ponzi scheme alleged by EquiAlt. The EquiAlt investor, on the recommendation of the RIA representative, requests compensation for losses incurred as a result of investing in the EquiAlt funds.
The EquiAlt investor’s complaint alleges that the RIA did not conduct adequate due diligence through its agent prior to offering and selling the allegedly fraudulent and unregistered EquiAlt securities. The complaint also alleges that the RIA agent violated fiduciary duties in promoting and selling the unregistered EquiAlt securities. The RIA is also charged with violating securities laws and regulations by selling the unregistered EquiAlt securities to a non-accredited investor through its agent. No judgment has been given on the recently filed allegations and no liability has been established for any company referred to in this press release.
The EquityAlt Ponzi Program
in the February 2020 The Securities and Exchange Commission (“SEC”) filed a lawsuit against EquiAlt, its CEO Brian Davisonand its manager Barry Rybicki.
The SEC claimed that the launch January 2011, EquiAlt, Davison and Rybicki have raised fraudulently $ 170 million for 1,100+ investors, many of whom invested their retirement savings by misrepresenting EquiAlt’s financial condition, investment strategy and use of investor proceeds. The SEC also claimed that a large portion of Davidson and Rybicki’s investments were spent to fund their lavish lifestyles, while money from one of the EquiAlt funds was used to make Ponzi-like payments to investors in another fund.
Separately, the SEC charged several sellers for their alleged involvement in the EquiAlt program.
Investors in EquiAlt funds can contact Goldman Scarlato & Penny’s attorneys to assess possible claims for damages
EquiAlt investors can contact Goldman Scarlato & Penny’s securities attorneys Alan Rosca and Paul Scarlato If you have any questions about this matter and your investment losses, or to provide useful information, toll-free at 888-998-0530, email at [email protected] or [email protected]or via the contact form on the Equialt Investor Center page.
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SOURCE Goldman Scarlato & Penny, PC