SEC Charges Deceased Advisor Stephen Romney Swensen’s Estate with Alleged Ponzi Scheme
According to a Litigation Release on Oct. 18, 2022, the Securities and Exchange Commission filed charges against the estate of Stephen Romney Swensen, a former registered investment advisor, for allegedly operating a fraudulent investment offering from 2011 until 2022 that raised over $29 million from more than 50 investors.
The SEC’s complaint alleges that Swensen, who died on June 6, 2022, fraudulently induced victims into investing in Crew Capital Group, LLC. Swensen purportedly lied to investors that Crew Capital was a fund that was co-managed by a reputable firm and “guaranteed investors a minimum 5% annual return and up to 10% if the S&P 500 performed well,” according to the complaint.
Crew Capital, which was reportedly owned and controlled by Swensen, did not invest in any securities, according to the agency. Instead, the SEC alleges, Swensen stole all investor funds to make Ponzi payments to other investors and to pay for Swensen’s personal expenses, including real estate, vehicles and multiple private aircraft.
The SEC’s complaint, filed in U.S. District Court for the District of Utah, charges Swensen and Crew Capital with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks a permanent injunction against Crew Capital, and disgorgement with prejudgment interest from Swensen’s estate and Crew Capital.
According to his FINRA BrokerCheck profile, Swensen was affiliated with the following firms during his career in the securities industry, among others.
06/26/2018 – 06/08/2022, WEALTH NAVIGATION ADVISORS (CRD#:140612), CENTERVILLE, UT
05/08/2018 – 07/02/2018, J.W. COLE FINANCIAL, INC. (CRD#:124583), CLEARFIELD, UT,
B, 07/01/2014 – 05/08/2018, ALLEGIS INVESTMENT SERVICES, LLC (CRD#:168557), Clearfield, UT
B, 03/22/2010 – 07/02/2014, SUMMIT BROKERAGE SERVICES, INC. (CRD#:34643), CLEARFIELD, UT
Potential Lawsuits to Recover Investment Losses
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, such as excessively trading customer accounts, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you suffered investment losses with financial advisor Stephen R Swensen, the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation, or visit us on the web at www.whitesecuritieslaw.com.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.
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