5 Star Commercial, LLC and 5 Star Capital Fund LLC – Complaint Filed by SEC

5 Star Commercial, LLC and 5 Star Capital Fund LLC – Complaint Filed by SEC | Goodman & Nekvasil P.A. May Recover Investor Losses

According to the SEC Allegations

This case centers on material misrepresentations made to investors – and a fraudulent scheme perpetrated – by Defendant Earl D. Miller and two private investment vehicles that he controlled, 5 Star Commercial, LLC (“5 Star Commercial”) and 5 Star Capital Fund, LLC (“5 Star Capital”).

Miller has been in the business of real estate development and sales since 2006. Starting in 2008 – despite having no experience in managing private investment funds – Miller started recruiting investors for a number of private investment entities that he created. Those private investment entities, in turn, were supposed to generate a return by investing in the building and/or rehabilitating of residential real estate (Miller’s “Real Estate Entities”).

In approximately 2012, Miller started raising money for a new private investment fund – 5 Star Commercial. As with his other Real Estate entities, 5 Star Commercial was supposed to invest investors’ money in various real estate projects. Miller gained sole control of 5 Star Commercial in July 2014 and continued to solicit investor funds. In February 2015, Miller branched out and created 5 Star Capital which was supposed to invest in “green energy saving product (sic) that save the average American consumer hundreds of dollars each year.”

Earl Miller recruited investors for 5 Star Commercial, 5 Star Capital and his other Real Estate entities from a network of predominantly novice investors, including members of the local Amish community.

Earl Miller has been enormously successful in exploiting this investor network. From at least July 29, 2014 to the present, he has raised at least $3.9 million from at least 70 investors for his 5 Star Commercial and 5 Star Capital entities.

But, in raising those funds, Earl Miller repeatedly lied to prospective investors. Through 5 Star Commercial, Miller lied to prospective investors in two critical instances. First, he falsely told investors that he would not get paid anything for managing the fund when, in reality, he misappropriated over $1 million from 5 Star Commercial investors for his personal use and to pay off a former business partner. Second, Miller and 5 Star Commercial informed investors that their money would be invested exclusively in real estate when, in reality, he invested and/or transferred over $391,000 of 5 Star Commercial’s funds into highly speculative, fledgling companies that purportedly made and marketed “green products.”

Miller similarly defrauded prospective investors in 5 Star Capital – the fund that actually was supposed to invest in the purported “green” companies. Earl Miller (a) told investors that 5 Star Capital owned patents on many of the “green” products that he would be investing in, (b) assured investors that he would “manage risks” on behalf of 5 Star Capital, and (c) orally represented to at least one investor in 5 Star Capital that their money would be invested in real estate (just like Earl Miller’s other entities).

None of those representations was true. In reality, 5 Star Capital owned no “green product” patents, Earl Miller performed virtually no due diligence into the purported “green” companies before handing them the lion’s share of 5 Star Capital’s assets, and – contrary to his oral representations to certain investors – the overwhelming majority of 5 Star Capital’s assets were not invested in real estate.

Investors in 5 Star Commercial, LLC and/or 5 Star Capital Fund LLC May Recover their Losses with Goodman & Nekvasil, P.A.

If you invested in 5 Star Commerical LLC and/or 5 Star Capital Fund LLC, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors. 

All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years. 

There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.

If you incurred investment losses in 5 Star Commerical LLC and/or 5 Star Capital Fund LLC and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us. 

5 Star Commercial, Investment Fraud Attorney, Stockbroker Misconduct Disciplinary Actions, Unsuitable Investment Advice, Investment Fraud, Churning, Misrepresentation and Omission of Material Facts, Elder Fraud, Unauthorized Trading, Theft, Selling Away, Unapproved Outside Business, Nationwide, PIABA, SEC, Securities Exchange Commission, NASD, National Association of Securities Dealers, NASDAQ, Dow Jones, Wall Street, New York Stock Exchange, 5 Star Capital

 

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