Originally Syndicated on June 12, 2023 @ 8:00 am
The Securities and Exchange Commission charged Vincent Camada, the owner of registered investment adviser A.G. Morgan Financial Advisors, and former Chief Compliance Officer James McArthur with illegally offering and selling securities in connection with a more than $500 million unregistered fraudulent offering.
According to the SEC’s complaint, Vincent Carmada received more than $7 million in compensation for raising more than $75 million from more than 200 investors in connection with Par Funding’s unregistered securities offering from at least August 2017 to July 2020.
Why did SEC Charge CEO Vincent Carmada?
AGM’s CEO Vincent Carmada allegedly began taking out funds from Par Funding in December 2016 through “merchant cash advance” transactions. By July 2017, AGM owed Par Funding $750,000 in connection with the alleged loans.
In August 2017, two executives, Vincent Carmada and James McArthur, allegedly began seeking investors to invest in promissory notes through Par Funding’s unregistered securities offering.
Between August and November 2017, the two executives reportedly convinced many investors to spend at least $2.6 million in the Par Funding promissory notes. Furthermore, the CEO Carmada allegedly reassured at least two investors that it was a secure investment while ignoring that his firm AGM was in debt to Par Funding and that he was a guarantee.
AGM and CEO Vincent Carmada and former Chief Compliance Officer allegedly took more than $7 million in compensation for selling Par Funding securities.
SEC Charges Against Vincent Carmada
The SEC alleges that the defendants, including Vincent Carmada, offered and sold securities to investors without the permission of the licensed broker-dealer with whom they were connected. The complaint further claims that in 2017, AGM and Carmada failed to provide notice advising clients that AGM had borrowed and not completely repaid $750,000 from Par Funding.
The complaint, filed in federal court in the Eastern District of New York, charges AGM and its owner, Vincent Carmada, as well as McArthur, with the following:
- Breaching the Securities Act of 1933’s registration provisions,
- Acting as unregistered broker-dealers in violation of the Securities Exchange Act of 1934, and
- Vincent Camada with breaching the Investment Advisers Act of 1940’s antifraud provisions.
The SEC seeks permanent injunctions, disgorgement, prejudgment interest, and civil monetary penalties.
The investigation was led by Christine M. Hernandez and Crystal C. Ivory of the SEC’s Miami Regional Office, with assistance from Raymond J. Slezak, Michael P. O’Donnell, and Mary Beth Lynch of the Division of Examinations, and handled by Elisha L. Frank, Fernando Torres, and Glenn S. Gordon. The SEC’s lawsuit will be led by Amie R. Berlin, who will report to Teresa Verges.
Violations of Section 206(1) of the Advisers Act Against CEO Vincent Carmada and AGM
According to court documents, from no later than August 2017 to November 2017, AGM and CEO Carmada engaged in the conduct as mentioned earlier, directly knowingly through the use of the mail and while involved in the business of advising others in exchange for money on the advisability of investing in, purchasing, or selling securities, employed devices, schemes, or artifices to defraud.
Violations of Section 15(a) of the Exchange Act Against Vincent Carmada
The Commission charged Carmada, its Firm AGM, and McArthur with engaging in the business of effecting securities transactions for the account of others; and using the mails commerce to effect transactions in, or attempt to induce the purchase or sale of, securities without being registered as a broker or dealer with the Commission.
Because of the preceding AGM, Carmada and McArthur have violated, and are reasonably likely to continue to violate, Section 15(a)(1) of the Exchange Ac.
Who is Vincent Carmada?
Vincent Carmada is the Chairman and CEO of AG Morgan Financial Advisors. He has worked in finance since 1994.
Carmada’s firm increased through client referrals over time. By 2003, he was the country’s second highest-producing advisor with American Express Financial Advisors. He claims to have received the most referrals compared to the other 13,000 advisors in the country.
Carmada left American Express in 2005 to launch his independent investment management firm. Carmada graduated from Hofstra University with a B.B.A in Accounting. He also claims to hold FINRA Series 7, 63, and 66 securities licenses and permits. He is living in a Long Island residence with his three children, Andrew, Gregory, and Morgan.
What Does AG Morgan Financial Advisors Offer?
Vincent Carmada, CEO of AG Morgan Financial Advisors, claims to advise clients with a wide range of portfolio sizes; the average client balance is $313,048. A.G. Morgan Financial Advisors manages a total of $217.3 million in assets.
AG Morgan Financial Advisors provides a wide range of financial planning services to Americans as a financial advisory firm. They were saving for retirement, for example, by creating a comprehensive financial strategy and managing an investment portfolio (e.g., stocks, ETFs, mutual funds, bonds).
It also involves tax planning, estate planning, retirement planning, and planning for major life decisions such as saving for college, getting married, buying a home, paying off debt, or planning an inheritance.
AG Morgan Financial Advisors’ headquarter is at 5260 Merrick Road, Massapequa, NY 11758.
Conclusion
According to a news release, the Securities and Exchange Commission filed a complaint on June 10, 2022, about an unregistered securities offering that received over $75 million from more than 200 individuals. A.G. Morgan Financial Advisors, LLC and its founder Vincent Carmada and former Chief Compliance Officer reportedly violated federal securities laws between August 2017 and July 2020.
The defendants allegedly solicited investors and sold promissory notes to investors concerning a more than $500 million unregistered fraudulent offering with loan company Complete Business Solutions Group, Par Funding.
