The Father & Son Pair of Jerome and Shaun Cohen Allegedly Operated a $135 Million Ponzi Scheme via Their Real Estate Investment Firm, EquityBuild Inc.
Jerome and Shaun Cohen, a father and son duo, allegedly operated a $135 million Ponzi scheme via their Equitybuild Inc., according to a Complaint from the SEC under review by attorney Alan Rosca
Said alleged Ponzi scheme allegedly brought in roughly 900 investors with purported promises of double-digit returns, the SEC reports. EquityBuild allegedly solicited investors through Internet advertising, social media, and other methods, the SEC states, in a reported scheme that purportedly invested in notes backed by South Side of Chicago real estate and other assets.
The SEC Complaint further states that EquityBuild affiliates allegedly sustained heavy losses and the properties they pitched to investors failed to earn anywhere near enough to pay the promised double-digit returns.
As a result, (the EquityBuild) investment program devolved into a Ponzi scheme: Defendants could only pay earlier investors by raising funds from unwitting new investors.
Alan Rosca, of the Goldman Scarlato & Penny PC law firm, is investigating activity related to Equitybuild Inc.’s alleged Ponzi scheme. Investors who believe they may have lost money in activity related to Equitybuild Inc.’s alleged Ponzi scheme are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
EquityBuild Allegedly Shaved 15 to 30 Percent off Each Investment through Undisclosed Fees & Paid Returns to Older Investors with New Investments
EquityBuild, of Marco Island, Florida, allegedly shaved 15 to 30 percent off each aforementioned investment through fees that the company and the Cohens allegedly failed to disclose, according to the aforementioned SEC Complaint under review by attorney Alan Rosca.
EquityBuild also allegedly solicited investors to invest in debt used to finance properties while allegedly touting outsize returns of 12 to 20 percent with minimal risk of loss of principal, the SEC notes.
Finally, EquityBuild also allegedly paid out returns to older investors with the proceeds of newer investments, and thus paying investors roughly $14.5 million in interest payments between January 2015 through February 2017 although income and fees from EquityBuild properties totaled only $3.8 million, the SEC suit reports.
Securities Lawyer Investigating
The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Equitybuild Inc.’s alleged Ponzi scheme. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of Equitybuild Inc.’s alleged Ponzi scheme may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at email@example.com, or through the contact form on this webpage.