Morgan Mezzanine Fund and Morgan Acquisitions LLC – SEC Files Complaint | Goodman & Nekvasil P.A. May Recover Investor Losses
ACCORDING TO THE SEC:
The Commission brings this emergency action to halt ongoing misconduct by Defendants in connection with a series of fraudulent private securities offerings, which Defendants have operated in a Ponzi scheme-like manner by using investor funds to make interest and principal redemption payments back to prior investors, and to cover up other mortgage fraud-related conduct.
Morgan is a developer of residential and commercial real estate projects located primarily in the Northeastern United States. Morgan has financed these projects using four basic sources of capital: (a) sales of securities directly to retail investors, on which this action focuses; (b) institutional mortgage loan financing, where the loans are then typically securitized as part of commercial mortgage-backed securities issued by either government-sponsored entities such as The Federal Home Loan Mortgage Corporation (“Freddie Mac”) or private entities; (c) mezzanine financing; and (d) construction loans. Between 2013 and September 2018, Morgan raised more than $110 million from investors through sales of securities directly to retail investors. Of this amount, Morgan has raised at least $80 million from investors in four sets of purported funds (the “Notes Funds”).
Over time, more than 200 individuals and entities located in at least 17 states have invested in the Notes Funds, many of whom are residents of this District. Approximately three dozen investors used their retirement accounts to invest directly in the Notes Funds. A pension plan for an electrical workers union based in this District also invested in the Notes Funds.
Emergency relief is necessary in order to protect investors in the Notes Funds. Though investors are owed more than $63 million, the Notes Funds have few if any assets beyond the receivables from the Portfolio Loans they have already made to Affiliate Borrowers. Accordingly, a freeze of Morgan’s assets, which includes his equity interests in these Affiliate Borrowers, will help preserve the status quo and protect against the dissipation of further assets, while also maximizing the value of Morgan’s existing assets for the benefit of investors. Indeed, news reports indicate that, a day after the recent guilty plea of an individual who used to work for Morgan, and who implicated Morgan in an insurance fraud conspiracy,2 Morgan listed his primary residence for sale. Additionally, with the properties in the Morgan portfolio in various stages of marketing and sale, and Morgan’s own superseding indictment that was returned in the Morgan Criminal Action on the afternoon of May 21, 2019, a Court-appointed receiver is necessary to administer and unwind the Notes Funds, make payments authorized by the governing documents, and pursue claims on behalf of the Notes Funds (including claims against Morgan on his personal guaranties).
Investors in Morgan Mezzanine Fund and/or Morgan Acquisitions LLC May Recover their Losses with Goodman & Nekvasil, P.A.
If you invested in Morgan Mezzanine Fund and/or Morgan Acquisitions, 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 with Morgan Mezzanine Fund and/or Morgan Acquisitions 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.
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