I received a document from a confidential source that was prepared by Aequitas and it is quite enlightening. It is written about the Aequitas Private Notes issued by ACF (Aequitas Commercial Finance), and dated the third quarter of 2015.
The document states, “ACF uses proceeds from Private Notes primarily to repay prior investors.” I interpret this to mean that the company did not have the assets to pay prior investors from its regular course of business. I define a Ponzi Scheme as an investment scheme that operates by using new investor money to pay prior investors, and creating the illusion that distributions are from operations, when they are not. It is beginning to sound a lot like Ponzi at Aequitas. Investors in the ACF Private Notes who were unaware of this fact when they made their purchases have legitimate reason to complain, and file claims against Aequitas principals and the advisors who sold those notes. The law requires that investors be told all of the material facts if they are solicited to make a purchase.
So far we don’t know whether the other Aequitas programs also used new investor money to pay existing investors, but we will find out.
Samuels Yoelin Kantor securities attorneys Robert Banks and Darlene Pasiczny are heading up the Aequitas investigation. Banks recently updated concerned investors with information regarding their choices for pursuing recovery. Please contact our office to discuss your situation confidentially. You can call 800-647-8130 or reach us by email at email@example.com or firstname.lastname@example.org.