Call Now For a Free Consultation:
(614) 502-6165

Lending Company and Brokerage Firm Charged With Fraud

On February 3, 2016, the Securities and Exchange Commission announced charges of fraud against a lending company out of Manhattan and its owner. Fraud charges were also levied against the brokerage firm acting as the placement agent, as well as two executives.

American Growth Funding II LLC and Ralph Johnson are accused of repeatedly lying to investors purchasing high-yield securities, promising a 12% annual return to investors in AGF II. They allegedly falsely claimed that the financial statements were being checked with an annual audit and misrepresented documents regarding details of loan values and management. According to the complaint, AGF II raised roughly $8.6 million from investors during the time period from March 2011 to December 2013.

Portfolio Advisors Alliance, a brokerage firm and the placement agent for AGF II—are also accused of fraud. The SEC alleged the firm knew of the inaccurate documents, but still continued to use them in order to solicit sales.

Andrew A. Calamari, Director of the SEC’s New York Regional Office said this:

“We allege that AGF II misled investors and overstated the true value of these investments, which are worth far less than presented because many of the company’s loans are non-performing. We further allege that Allen and Wasserman looked the other way and allowed PAA to facilitate the fraud as the placement agent.”

If you lost money with American Growth Funding II LLC, learn about your legal rights to seek compensation. Call our securities fraud attorneys at Meyer Wilson for a free consultation today.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram