Two local investment advisers, along with a Carmel attorney, stand accused by the Securities & Exchange Commission of running a $15 million Ponzi scheme. Charged in the scheme are Veros Partners' Matthew Haab and Tobin J. Senefeld, and Jeffrey B. Risinger, a Carmel attorney.
According to a press release issued by the SEC, the three men raised $15 million from about 80 investors for the purpose of making short-term loans to farmers. In actuality, the investment proceeds were used to cover unpaid debts already owed by farmers who had been previously loaned money. At the same time, the three men are accused of paying themselves $800,000 in undisclosed "success" and "interest rate spread" fees.
In addition to Veros Partners, Haab, Senefeld and Risinger, the federal complaint also names as defendants Veros Farm Loan Holding, LLC and FarmGrow Cap, LLC, the issuers of the offerings and PinCap, LLC and Pin Financial, LLC as the registered broker-dealer. According to the press release, Judge Jane Magnus-Stinson issued an asset freeze order against the defendants, as well as a temporary restraining order prohibiting them from soliciting, accepting or depositing any monies from prospective investors.
4 comments:
Is this a civil case or criminal?
It's a civil enforcement case by the SEC.
Veros Partners President, Matthew Haab, indicates in his bio on his website dental page that he is a Certified Financial Planner. According to the CFP Board, he is not certified.
This accounting firm also happens to be a Registered Investment Advisory firm handling clients money. However, based on its webpage, it does not appear to have any employee that has securities or investment training.
I see Mr. Risinger is a premier attorney according to Martindale-Hubbell. Their ratings must be as reliable as Angie's List.
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