Essex Capital Corporation & Its Founder Ralph Iannelli Allegedly Orchestrated a Fraud Related to an $80 million Securities Offering Involving Approximately 70 Investors
Have you or a loved one lost your hard-earned money investing in Essex Capital Corporation? The SEC is seeking an emergency relief against Essex Capital Corporation, equipment leasing company, and its founder, Ralph Iannelli, in in connection with an alleged $80 million securities offering involving approximately 70 investors, according to an SEC Complaint under review by attorney Alan Rosca.
Attorney Alan Rosca, of the Goldman Scarlato & Penny PC law firm in the Philadelphia area, is investigating activity related to Essex Capital’s alleged investment fraud. Investors who believe they may have lost money in activity related to Essex Capital’s alleged investment fraud are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
Iannelli, from 2014 to 2017, allegedly brought in investor capital via the sale of said promissory notes that purportedly paid a high rate of return, usually 8.5%, but up to as high as 10% per annum. In certain of its marketing materials, Essex often market the notes by claiming that 100% of investor funds would be implemented to purchase equipment, and that investors would get their return on their investment within a 3-year time frame, the SEC states.
In reality, however, Essex’s business did not turn a steady profit and the representations which Iannelli made were materially false and misleading, the SEC reports.
Essex & Iannelli Allegedly Provided One Investment Adviser with Phony Financial Statements that Overstated Essex’s Assets by over $20 Million
Essex and Iannelli allegedly provided one investment adviser with phony financial statements that purportedly overstated Essex‘s assets by more than $20 million, according to the aforementioned SEC Complaint under review by attorney Alan Rosca.
Essex and Iannelli also allegedly falsely told another investment adviser that Essex would assign equipment leases to its clients when the same leases had already been pledged as collateral for bank loans, the SEC Complaint states.
As Essex‘s finances deteriorated, the company allegedly resorted to frequent Ponzi-like payments, paying off interest and principal to existing Essex investors with funds raised from newer investors, the Complaint notes.
Simultaneously, Iannelli allegedly paid himself millions of dollars in bonuses and siphoned millions of dollars out of Essex through interest-free loans with no maturity date, and personally owes the company over $6.4 million, the Complaint states.
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 Essex Capital’s alleged investment fraud. 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, 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 Essex Capital’s alleged investment fraud may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at firstname.lastname@example.org, or through the contact form on this webpage.