SEC Charges Former Adviser Derek Taller with $22 Million Investment Fraud Scheme
The Securities and Exchange Commission (SEC) has reportedly filed civil charges against former financial adviser Derek Taller, alleging that he engaged in a “persistent and egregious” fraud while managing two investment funds, including Vision BioBanc Holdings LLC and StHealth Capital Investment Corporation.
According to the SEC complaint filed in the U.S. District Court for the Southern District of New York, the allegedly fraudulent conduct spanned nearly six years, from March 2018 through January 2024, and involved misrepresentations, undisclosed conflicts of interest, and the misappropriation of investor funds.
Details of the Allegations
Taller reportedly served as the principal officer, director, and investment adviser for both Vision BioBanc Holdings LLC, an unregistered fund, and StHealth Capital, a business development company (BDC). The SEC alleges that in 2020, he provided prospective investors with offering documents that falsely stated Vision Holdings was overseen by an independent board of directors and that its financials would be audited by an independent firm. In reality, Vision Holdings reportedly never engaged an auditor, and Taller was the only active board member until at least August 2021.
The SEC also claims that Taller misappropriated at least $500,000 from the two investment funds for his personal benefit.
Perhaps most troubling are the allegations surrounding Taller’s undisclosed conflicts of interest. In May 2020, the complaint states, he acquired an interest in a third-party startup and then directed both Vision Holdings and StHealth Capital to loan the startup $2 million, without disclosing his stake in the borrower. Over the next year, he allegedly caused Vision Holdings to lend an additional $21.7 million to the startup and its affiliates, again without disclosing his relationship with the entities.
As StHealth Capital was a registered BDC, it was required to obtain prior approval from the SEC before entering into any joint transaction of this nature. Taller reportedly failed to seek such approval.
Charges Filed against Derek Taller
The SEC has charged Taller with violating multiple securities laws, including:
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Section 17(a) of the Securities Act of 1933
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Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
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Sections 206(1) and 206(2) of the Investment Advisers Act of 1940
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Section 57(a)(4) of the Investment Company Act of 1940 and Rule 17d-1
The SEC is seeking a permanent injunction, disgorgement of ill-gotten gains with interest, civil penalties, and a bar prohibiting Taller from serving as an officer or director of any public company.
Recovering Investment Losses – What Can Investors Do?
If you are an investor in Vision BioBanc Holdings LLC, StHealth Capital Investment Corporation, or were otherwise advised by Derek Taller, you may have options to recover your losses through FINRA arbitration or securities litigation.
The White Law Group is currently investigating potential claims on behalf of investors involving Derek Taller and the allegedly fraudulent investment vehicles he controlled. Our securities fraud attorneys have handled over 700 FINRA arbitration cases nationwide and may be able to help you pursue compensation.
Free Consultation with a Securities Fraud Attorney
If you invested with Derek Taller or believe you were misled by your financial adviser, contact The White Law Group at 888-637-5510 for a free consultation.
For more information, visit www.whitesecuritieslaw.com.
About The White Law Group
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Seattle, Washington, and Chicago, Illinois. We help investors nationwide recover investment losses due to fraud, negligence, or improper financial advice.
