SEC Files Fraud Charges Against Arizona Residents for Stealing $18 Million
The Securities and Exchange Commission (“SEC”) has charged five Arizona residents with stealing $18 million from investors. The SEC alleges that Jason Mogler, James Hinkeldey, Casimer Polanchek, Brian Buckley, and James Stevens stole about 97% of the $18 million they raised from 225 investors. Investors were told that their money would be used to buy foreclosed homes, buy and develop beachfront property in Mexico, and to operate recycling facilities. But the accused apparently used investors’ money to make car and child support payments, buy clothes, pay for travel and entertainment at luxury resorts, casinos, and strip clubs.
The accused reportedly lied about the purported performance of the investments to appease worried investors when they did not make promised payments on promissory notes. At times, they even made Ponzi-like payments to investors who threatened them with lawsuits, using money from new investors to pay “investment returns” to those who threatened lawsuits.
According to the SEC’s complaint, the five individuals who are the subject of the SEC complaint, who were not properly licensed to sell securities:
- solicited and lured prospective investors at bars, on cruises, and through radio, magazine, and internet ads, and self-help seminars;
- participated in an Arizona radio program called The Investment Roadshow, during which they instructed listeners about how to invest using self-directed IRAs;
- steered prospective investors to an Arizona Investment Center website they created for investors to schedule appointments or sign up for seminars or webinars to learn more about their investment opportunities;
Mogler, who reportedly referred to investor funds as “our treasure chest” and his “personal (expletive) candy store,” is accused of stealing $10 million. Polanchek, Hinkeldey, Buckley, and Stevens allegedly stole $2 million, $900,000, $500,000, and $200,000, respectively.
If you are a victim of this investment fraud, please contact a DKR lawyer for a free consultation about your rights.
See SEC Complaint: http://www.sec.gov/litigation/complaints/2015/comp-pr2015-190.pdf