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Introduction:
Dwayne Golden, Mardy Eger, and Greg Aggesen have all just been indicted for their alleged participation in a plot to defraud investors out of money invested in the stock market. According to the allegations, the con was carried out via a business known as Equitybuild, which pretended to be an investment firm specializing in real estate. The three people are being investigated for several counts relating to wire fraud, including conspiracy to conduct the crime. In the next paragraphs, we will look at the evidence that was presented against them.
The history of Equitybuild
Equitybuild was a real estate investment company that marketed itself as being able to guarantee high rates of return on investments made by clients. Shaun Cohen, who said that he had years of expertise in the real estate market, launched the firm in 2008 and has been its only proprietor ever since. Cohen promoted Equitybuild as a risk-free investment option that offered certain profits to potential customers.
Investors were informed that their funds would be used toward the acquisition of real estate, which would then be leased out to tenants. The return on investment for the investors would be paid out of the revenue from the rental property. Equitybuild said that it has a sizable portfolio consisting of properties located throughout the United States.
The Supposed Conspiracy to Commit Fraud
The indictment alleges that Dwayne Golden, Mardy Eger, and Greg Aggesen were all complicit in a conspiracy to commit fraud against investors by using Equitybuild as the vehicle. The three individuals are accused of lying to investors and exaggerating the status of the company’s finances. They are also accused of making fraudulent representations to investors.
According to the allegations, investors were led to believe that their money would be utilized to acquire rental properties; but the funds were used to pay for the extravagant lives of the defendants. The indictment makes the allegation that the defendants utilized the monies from the investors to acquire luxury automobiles, go on pricey holidays, and pay for various personal expenditures.
In addition to this, the indictment alleges that the defendants lied to investors about the status of the properties that were acquired after they had already bought them. But many of the buildings were in a state of disrepair and generated little to no revenue. The investors were reportedly assured that the houses were in excellent shape and that they were producing rental money.
The defendants are also accused of utilizing monies from new investors to pay returns to investors who had contributed money earlier in the scam. This is a typical example of a Ponzi scheme.
The Allegations Dwayne Golden, Mardy Eger, and Greg Aggesen have been accused of conspiring to conduct wire fraud, committing wire fraud, and conspiring to commit money laundering. The charges have been brought against them. The charges might result in a term of up to twenty years in prison for the defendant.
In addition to the criminal allegations, the defendants are now facing a civil case that has been brought against them by the Securities and Exchange Commission (SEC). The Securities and Exchange Commission (SEC) is taking legal action to get all of the money that was fraudulently gained back from the defendants and to permanently enjoin them from breaking any securities laws in the future.
The Securities and Exchange Commission (SEC) asserts that the defendants violated the anti-fraud sections of the federal securities laws by providing investors with claims that were both false and misleading. The defendants are also being accused by the SEC of offering and selling securities that have not been registered.
The SEC has filed a civil complaint against the company, although the creator of Equitybuild, Shaun Cohen, is not mentioned in either the indictment or the civil case. On the other hand, he has been the target of other legal proceedings connected to Equitybuild.
The Securities and Exchange Commission (SEC) initiated a civil case against Cohen in 2019, saying that he duped investors out of more than $135 million via Equitybuild. The Securities and Exchange Commission (SEC) accused Cohen of defrauding investors by making false and misleading representations to them as well as using investor monies for his gain.
Cohen reached a settlement with the SEC, in which he agreed to pay a penalty of $10 million and to be prohibited from engaging in the offering or sale of securities for a term of twenty years.
Significance of the Indictment
The indictment of Dwayne Golden, Mardy Eger, and Greg Aggesen emphasizes the need of doing thorough research before making decisions on potential investment possibilities. The company Equitybuild was able to recruit investors by luring them in with false promises of big profits and by making statements that were both false and deceptive to give the impression that the company was doing well.
The phrase “great profits with little to no risk” should always raise red flags for potential investors since these opportunities should be avoided at all costs.
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