SEC Files Fraud Charges Against Arizona Residents for Theft of $18M

The SEC filed fraud charges against five Arizona residents, because they deceived investors out of $18 million between 2006 and 2013. According to the SEC, Jason Mogler, James Hinkeldey, Casimer Polanchek, Brian Buckley and James Stevens convinced 225 investors that their money would be used to purchase foreclosed homes, buy and develop beachfront property in Mexico, and invest in various recycling facilities.

Instead of investing the money, the group used nearly 97 percent of the $18 million to fund their personal lifestyle, with the funds going toward travel, car and child support payments, clothes, entertainment and more.

According to the complaint filed by the SEC, the group engaged in fraudulent securities offerings through a series of limited liability companies all under the various defendants’ control, none of which were registered with the SEC, nor were they licensed to sell securities.

The group solicited investors by airing commercials on the radio, in magazines, on the Internet and even in person. They also ran a company known as the Arizona Investment Center, where potential investors signed up for webinars or seminars and were encouraged to invest in the group’s fraudulent schemes.

When the group failed to make promised payments on their promissory notes, they engaged in Ponzi-like payments to investors who threatened them with a lawsuit. Mogler is accused of stealing $10 million in investor funds while Polanchek, Hinkeldey, Buckley and Stevens are accused of stealing $2 million, $900,000, $500,000 and $200,000, respectively.

Call a Los Angeles Fraud Attorney Today

If you are a victim of this investment fraud, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles fraud attorney today for a consultation regarding your rights.