24 Mar Securities and Exchange Commission Levies Fraud Charges Against American Growth Funding II LLC and Portfolio Advisors Alliance; Peiffer Rosca Wolf Securities Lawyers Investigating
American Growth Funding II LLC (“AGF II”), AGF II’s owner Ralph Johnson (“Johnson”), Portfolio Advisors Alliance (“PAA”), PAA’s owner Howard Allen (“Allen”), and PAA’s president Kerri Wasserman (“Wasserman”) were charged with securities fraud by the Securities and Exchange Commission (“SEC”). The Peiffer Rosca Wolf securities lawyers Alan Rosca and Joe Peiffer are investigating.
American Growth Funding II LLC Misrepresented Key Facts and Concealed Important Information from Investors, According to the SEC.
AGF II raised money from investors to fund loans made to businesses and promised investors 12% annual returns. However, AGF II concealed information from investors about the deteriorating loan values that could affect the investors’ return on those loans, according to the complaint filed by the SEC. AGF II and Johnson also made false claims in offering materials that AGF II’s financial statements were annually audited, when in fact, such audits did not occur, according to the complaint. Additionally, AGF II’s offering materials misrepresented the extent and expertise of AGF II’s management by stating that AGF II was governed by a “Board of Managers” consisting of Johnson and two other individuals, according to the complaint. However, the two individuals allegedly never agreed to serve in any managerial capacity.
SEC Alleges Portfolio Advisors Alliance was Aware of American Growth Funding II’s Alleged Fraudulent Conduct and Facilitated the Alleged Fraud
PAA sold approximately $8.6 million worth of AGF II investments between March 2011 and December 2013. PAA, Allen, and Wasserman learned that the AGF II offering materials contained false information about the program’s audits, according to the SEC’s complaint. Despite such knowledge, PAA continued to distribute AGF II offering materials to investors and failed to tell investors that no audits had been performed, according to the complaint.
The Peiffer Rosca Wolf Securities Lawyers Preparing to Take Action
The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of brokers churning customer accounts are encouraged to contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.