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Written by 4:24 pm Blog, Securities Fraud

SEC Charges A.G. Morgan Financial Advisors, Two Execs with Fraud  

SEC Charges A.G. Morgan Financial Advisors, Two Execs with Fraud , featured by top securities fraud attorneys, the White Law Group

Complete Business Solutions Group, d/b/a Par Funding Securities Fraud Investigation  

According to a press announcement, on June 10, 2022 the Securities and Exchange Commission filed a complaint involving unregistered securities offering that raised more than $75 million from more than 200 investors. Between August 2017 and July 2020, investment adviser A.G. Morgan Financial Advisors, LLC and its principal and former Chief Compliance Officer allegedly violated federal securities laws.   

According to the complaint, the defendants allegedly solicited investors and offered or sold promissory notes to investors in connection with a more than $500 million unregistered fraudulent offering with lending company Complete Business Solutions Group, d/b/a Par Funding. The SEC previously charged Par Funding and others with operating a fraudulent scheme that raised hundreds of millions of dollars from investors nationwide.  

While allegedly soliciting investors, the firm and two executives purportedly violated their fiduciary duty to their investment adviser clients by failing to disclose to investors that they had a conflict of interest.   

Specifically, in December 2016, AGM’s principal reportedly began borrowing money from Par Funding through so-called “merchant cash advance” transactions, or loans, and by July 2017, AGM owed Par Funding approximately $750,000 in connection with the alleged loans. In August 2017, the two executives purportedly began soliciting investors to invest in promissory notes through Par Funding’s unregistered securities offering.  

From August 2017 until November 2017, the two executives allegedly convinced numerous investors to invest at least $2.6 million in the Par Funding promissory notes. Further, the principal allegedly told at least two investors that it was a safe investment, while failing to disclose that his company AGM was in debt to Par Funding and that he was a guarantor on that debt to Par Funding.   

AGM, and the two executives allegedly received more than $7 million in compensation from their sales of the Par Funding securities.   

This information is publicly available and provided to you by The White Law Group.   

If you have suffered losses investing in Complete Business Solutions Group, d/b/a Par Funding, the securities attorneys at the White Law Group may be able to help you. Please contact The White Law Group at 888-637-5510 for a free consultation.     

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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.     

 

Tags: , , , , , Last modified: September 2, 2022