SEC Charges New York Advisor and His Firm With Securities Fraud

Posted on November 24th, 2021 at 12:27 PM
SEC Charges New York Advisor and His Firm With Securities Fraud

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has filed suit against Joshua Burrell and his company, Activated Capital LLC, alleging securities fraud pertaining to Opportunity Zone Investments. 

The SEC’s complaint alleges that Burrell and Activated Capital collected at least $6.3 million from clients between February 2019 and February 2021 to invest in Opportunity Zones, which is a community development program created by the Tax Cuts and Jobs Act of 2017. The offering documents informed clients that the real estate would be purchased in the name of the clients funding the investment and that distributions would represent income from the properties. However, Burrell instead misappropriated investor funds to purchase real estate in the name of other entities unrelated to the clients, according to the complaint. 

The SEC further alleges that the offering documents misrepresented that the fund would feature an outside custodian while falsely claiming that Activated Capital principals had substantially invested in the fund. Burrell misappropriated nearly $100,000 of client funds, which included $56,000 falsely classified as “property improvement” expenses, according to the SEC’s complaint. 

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

 

Tags: eccleston, eccleston law, sec, fraud

Return to Archive

TESTIMONIALS

Previous
Next

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

February 14, 2025
Jefferies Financial Group Dismisses Miami Advisory Team Amid Alleged Misconduct

Jefferies Financial Group recently terminated a team of Miami-based wealth advisors following allegations of improper money transfers and the use of unauthorized communication methods to conceal the activity.

February 13, 2025
FINRA Panel Denies J.P. Morgan's $39.7 Million Claim Against Former Advisor

A FINRA arbitration panel recently rejected J.P. Morgan Securities’ bid to recover $39.7 million in damages from Edward Turley, a former financial advisor whose alleged
misconduct led the firm to incur significant settlement costs.

February 12, 2025
Edward Jones Advisor Barred by FINRA Over Allegations of Unauthorized Account Changes

FINRA has barred Gwendolyn J. Hayes, a former Edward Jones advisor in Oregon after allegations surfaced that she altered client account information without authorization.