The investment lawyers of Gana LLP are investigating allegations by investors that Fusion Analytics Securities LLC (Fusion Analytics) and its agent Eric Willer (Willer) acted as placement agents to solicit investments tied to a massive $350 million Ponzi scheme involving the Aequitas funds. The U.S. Securities and Exchange Commission (SEC) has brought action against Aequitas Capital Management and three top executives for allegedly running the scheme. The SEC claims Aequitas defrauded more than 1,500 investors with sales pitches of investing in health care, education and transportation-related investments when in reality their money was used to try to save the firm from sinking.
According to BrokerCheck records kept by The Financial Industry Regulatory Authority’s (FINRA) one customer has filed a complaint against Willer concerning a private offering promissory note believed to be related to Aequitas. According to BrokerCheck records Willer has been in the securities industry for 10 years and has one customer complaints on his record. Willer is currently registered with Fusion Analytics out of the firm’s Dallas, Texas office location.
Brokerage firms like Fusion Analytics are required to conduct due diligence on the securities they offer to the public. A brokerage firm’s claim of ignorance of is not a proper defense to fraud in the absence of reasonable due diligence. Brokerage firms are obligated under the FINRA rules to properly monitor and supervise its employees in order to detect and respond to red flags of potential misconduct. In order to properly supervise their brokers each firm is required to have procedures in order to monitor the activities of each advisor and their interaction with the public. Ponzi schemes often occur where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct.
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana LLP are experienced in representing investors in cases of Ponzi schemes and brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover.