SEC Charges Florida Man and French National with $40 Million Securities Fraud

Posted on October 24th, 2022 at 12:58 PM
SEC Charges Florida Man and French National with $40 Million Securities Fraud

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged a Florida-based real estate agent, Fernando Bastos, and a resident of France, Joao Fonseca, as well as four entities they owned for orchestrating an investment fraud.

The two individuals, who were half-brothers, generated at least $40 million from nearly 250 investors between 2016 and 2020 via an unregistered securities offering in connection with the sale and management of investment properties in Detroit, according to the SEC. The SEC’s complaint alleged that Bastos, Fonseca, RBF Trust LLC and other companies owned by the half-brothers sold nearly 900 properties to investors without ever owning a majority of the properties.

The half-brothers falsely informed investors that they would manage the investment properties and secure paying tenants, according to the SEC. However, the SEC alleged that the half-brothers misappropriated nearly all the funds for their own personal use. The SEC is seeking a permanent injunction, disgorgement, and civil penalties against each defendant.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

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