
Aequitas Private Notes
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.