Illinois Resident Pleads Guilty to Investment Scheme
From the Desk of Jim Eccleston at Eccleston Law Offices:
Patrick G. Rooney, an Illinois resident, and his company, Solaris Management, LLC, were charged with perpetrating an investment fraud. Rooney has pled guilty to those SEC charges.
Rooney invested in Positron, a financially troubled microcap company, through Solaris Opportunity Fund L. The SEC alleges that Rooney, who has been Chairman of Positron since 2004 and received salary and stock options from Positron since September 2005, misused the Fund's money by investing more than $3.6 million in Positron through both private transactions and market purchases. Many of the private transactions were undocumented while other investments were interest-free loans to Positron.
Rooney and Solaris then hid the Positron investments, and Rooney's relationship with the company, from the Fund's investors for over four years. Those investments benefited Positron and Rooney while providing the Fund with a concentrated, undiversified, and illiquid position in a cash-poor company with a lengthy track record of losses.
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