McDonald Partners LLC Sanctioned by SEC| Goodman & Nekvasil P.A. May Recover Investor Losses
These proceedings arise out of Respondent’s role as placement agent for private securities offerings conducted by two pooled investment vehicles that Respondent advised (the “PIVs”). Those PIVs offered and sold securities to raise bridge funding for the construction of a resort in Montenegro. Investor monies raised through these offerings were to be used to purchase debt in a Montenegrin entity that was to construct the resort. Between September 2013 and continuing through January 2017, Respondent offered and sold more than $14 million in securities issued by the PIVs to investors located in the United States, including both its brokerage customers and its advisory clients. In October 2016, Respondent became aware of allegations that its point person at the Montenegrin entity had misappropriated $488,331 of investor funds2 by misusing a debit card belonging to that entity to pay for certain personal expenses. According to Respondent, after being confronted with the allegations that this individual had misappropriated funds from the Montenegrin entity, he conceded that he was not entitled to certain of the funds alleged to have been misappropriated. Accordingly, after negotiation, the individual agreed to repay approximately $335,000 that he had allocated to personal expenses.
Respondent did not disclose the misappropriation to existing investors in October 2016. Respondent then raised approximately $1.5 million in additional funds from existing security holders and new investors, including brokerage customers and advisory clients, in early 2017 without disclosing the misappropriation to those investors. In addition, for the period December 31, 2014 through December 31, 2018, Respondent failed either to provide investors in the PIVs with audited financial statements or to retain an independent public accountant to conduct surprise examinations of the books of those entities. By this conduct, Respondent violated Sections 17(a)(2) and (3) of the Securities Act and Sections 206(2) and 206(4) of the Advisers Act and Rules 206(4)-2 and 206(4)-8 thereunder.
Investors in McDonald Partners LLC May Recover their Losses with Goodman & Nekvasil, P.A.
If you invested in McDonald Partners LLC, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a St. Petersburg, FL law firm with a national practice representing victimized investors, has recovered more than $200 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 McDonald Partners 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.