Essex Capital Corporation Its Founder Ralph Iannelli Allegedly Made a Series of False & Misleading Statements & Illusory Personal Guarantees to Registered Investment Advisers
Are you or a loved one pursuing losses suffered in the Essex Capital Corporation? Essex Capital Corporation, and its founder, Ralph T. Iannelli, between 2014 and 2017, allegedly produced a series of false and misleading statements and illusory personal guarantees to registered investment advisers to induce them to invest millions of dollars of their clients’ money in Essex’s failing equipment leasing business, 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.
Said statements were allegedly used by Essex Capital Corporation, an equipment leasing company, and its founder Ralph Iannelli, to allegedly defraud investors in connection with sales of over $80 million in promissory notes, according to the aforementioned Complaint.
Essex Allegedly Spent $2.3 Million or Only 9% of the Capital Raised via the Sale of $20 Mil-lion of Promissory Notes Totaling & Bank Loans Totaling $6 Million to Allegedly Buy Equipment
Essex, by 2014, had only allegedly spent $2.3 million, or roughly 9% of the capital it had raised that year via the sale of $20 million of promissory notes and certain bank loans totaling $6 million, to actually purchase equipment, according to the aforementioned SEC Complaint under re-view by attorney Alan Rosca.
Essex and Iannelli then turned to allegedly making Ponzi-like payments to investors, whereby “[E]ssex [used] the bulk of its revenues to pay back investors and banks instead of using it to purchase income generating equipment”, the Complaint notes.
Said defendants, between 2014 and 2016, allegedly implemented approximately $65 million of company revenue to pay back investors on interest due on their notes, as well as to satisfy certain bank lenders, the Complaint reports.
What is more, the SEC has alleged in its Complaint that, as Essex’s financial condition plummeted, Iannelli allegedly “continued to siphon millions of dollars out of the company in the form of discretionary bonuses and interest-free personal loans to himself”, 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.