Litigation » “Offering Frauds” Are An SEC Litigation Focus

“Offering Frauds” Are An SEC Litigation Focus

“Offering Frauds” Are An SEC Litigation Focus

August 1, 2023

Offering fraud cases are typically based on the sale of interest in a fund. The bad actor finds something investors want and promises a good potential profit. Examples include IPOs, cannabis funds and even tickets to Broadway shows. In a recent case, SEC v. Legendary Partners, LLC, investors were solicited to acquire interests in a start-up that would use the money to refurbish damaged luxury vehicles. They would be sold for a profit. A man calling himself “Bill Miller” cold-called elderly investors and talked them into putting money into the scheme. Some of them thought they were investing in a movie company or a pharmaceutical company. The money was all misappropriated, but as a result of an SEC settlement, more than $100,00 was recovered. The defendant will be barred from offering or selling securities, and from serving as a corporate director or officer.

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