SEC & Other Regulatory Agencies

SEC vs. Copeland Wealth Management | Redlands, CA

Appointed as Permanent Receiver by the US District Court of Los Angeles over an alleged Ponzi-like scheme involving a company which operated 1) a $150 million financial advisory business, 2) two private equity and three fixed income investment funds, and 3) 18 real estate limited partnerships. The project involved the sale of the financial advisory business, recovering assets from the private equity and fixed income investment funds, performing a full forensic review of the complete operations of the enterprise, and managing and ultimately selling or otherwise liquidating the real estate investment properties, which are located throughout the United States.

SEC vs. Shidaal Express, Inc. | San Diego, CA

An alleged affinity fraud scheme within the San Diego Somali community. The owner of two check cashing locations solicited investments in $10K increments with the promise of a $500 monthly return on investment. The alleged ponzi scheme netted $3M in investments. Appointed as Receiver, an E3 principal took possession of and eventually closed the two check cashing stores, investigated the diversion of funds, and attempted recovery of the amounts invested.

SEC vs. Pacific West Capital Group | Los Angeles, CA

Appointed as a federal equity receiver for the PWCG Trust portfolio of 114 life settlement policies with a total maturity value of $234 million. The SEC alleged that Defendant raised over $100 million from investors, and that numerous policies were on the verge of defaulting because insufficient funds were left in reserves to pay premiums in order to prevent the policies from lapsing. The Receiver prepared cash flow forecasts and analyzed the policies in order to determine which policies should be maintained, and which should be sold or surrendered. The Receiver hired a new management company, pooled available funds to maintain the policies in good standing, and arranged interim credit financing.

SEC vs. Western Financial Planning | San Diego, CA

An E3 principal was appointed as Receiver by the US District Court over an alleged investment fraud which raised over $150 million from investors to purchase undeveloped land in Arizona, California, New Mexico and Nevada. The project involves over 3,400 investors in 86 active general partnerships which hold 23 investment properties. The Receiver also had to undertake forensic accounting review to quantify and identify amounts obtained from investors as well as how proceeds were spent by the Defendant. The Receiver has been authorized by the Court to conduct an orderly sale of the investment properties for subsequent distribution of the investors.

SEC vs. Alvin R. Brown, First Choice Investment, Inc., Advanced Corporate Enterprises, Inc. | Redondo Beach, CA

An E3 principal has been appointed as Receiver by the US District Court, Central District of California over entities which allegedly, in violation of federal securities laws, (a) committed fraud in the offer and sale of securities, (b) offered and sold securities without being registered with the Commission, and (c) misappropriated and misused offering proceeds. The project involves performing an accounting of the assets and financial condition of the receivership entities, and investigating, locating, and accounting for receivership assets.

SEC vs. World Capital Market | Pasadena, CA

An E3 principal was appointed as Receiver over numerous entities involved in an alleged $68 million Ponzi scheme involving over 350,000 investors worldwide. The Receiver is charged with identifying and recovering assets; which include but are not limited to cash, two operating golf courses, three single-family homes, vacant land, a warehouse, antique furniture and artwork, and various other investments and litigation claims. The Receiver also performed a forensic accounting of the financial affairs of the numerous entities in receivership, which involved analyzing and accounting for more than $200 million of transactions. The Receiver completed the claims process for this project, has been conditionally discharged (with “especially extraordinary” results praise from the Judge), has issued final distributions and is currently within the window for payment negotiation of the final distributions.

SEC vs. McKinley Mortgage Co. LLC, et. al.

An E3 principal (through E3) was engaged as Independent Monitor and Independent Manager through a Final Judgment entered by the US District Court for the Eastern District of California, Sacramento Division. The Independent Monitor/Independent Manager has and continues to work diligently to identify monitorship estate assets and liabilities, to assess business operations, to communicate with investors, and to maximize the value of the asset portfolio, which involves hundreds of assets located throughout the United States (including Alaska and Hawaii) and Mexico.

SEC vs. Blackhawk Manager, LLC, ISR Capital, LLC, et. al.

An E3 principal (through E3) was engaged as Independent Monitor through a Final Judgment entered by the US District Court for the District of Idaho. The Monitor is currently overseeing the work of an unrelated Independent Manager (also engaged under the Final Judgment), including assisting with the sale of several real and personal property assets located in Idaho and Montana.

Consumer Financial Protection Bureau (CFPB) vs. Pension Funding, Pension Income, et. al. | Huntington Beach, CA

An E3 principal was appointed as Receiver over several entities which are alleged to have offered consumers “pension advances” – lump-sum payments that Pensioners could receive in return for agreeing to direct all or part of their pension payments back to the defendant entities; such lump-sum payments are alleged to have been funded by investors who provided provide the capital for the transactions with Pensioners. The Receiver is charged with servicing operations and ongoing Pensioner payment collections, has completed a forensic accounting to determine the balance of Pensioner and Investor accounts, has completed a claims process, a second distribution of funds to investors and has motioned the Court for approval of final distributions and wrap-up of the receivership.

FTC vs. American Home Servicing Center, LLC, Capital Home Advocacy Center, LLC, National Advocacy Center, LLC, et al. | Santa Ana/Tustin, CA

An E3 principal was appointed as Receiver by the US District Court for the Central District of California, Southern Division, over entities that allegedly violated federal law in performing mortgage modification services. With very limited resources available, the project involved promptly securing and assessing the business enterprise, multiple communications with consumers and lenders, and swift pursuit of closure of the enterprise, operating premises and receivership.

FTC vs. Impetus Enterprises, Inc., et al. | Santa Ana, CA

An E3 principal was appointed as Receiver by the US District Court for the Central District of California, Southern Division, over entities that allegedly violated federal law in performing student debt modification services. The project involved promptly securing and assessing the business enterprises, researching dozens of potential operating locations, securing and recovering assets located through assessment of initial documentation obtained, and taking action for prompt closure of the enterprises. This receivership is ongoing.