SEC Charges Real Estate Investment Firm and Owner Over $100 Million Fraud

Posted on October 3rd, 2022 at 1:29 PM
SEC Charges Real Estate Investment Firm and Owner Over $100 Million Fraud

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission has charged Secured Income Group, Inc. along with its owner, Max McDermott, and its head investor relations representative, Stacey Porter, with fraud in a securities offering. The defendants raised $100 million between July 2017 and January 2021 from those who invested in the firm’s “Secured Debentures” offering.

The Orange County-based firm, at McDermott’s direction, informed investors that their funds would be pooled to make real estate loans secured by first lien positions on the underlying properties and that their investments were secured, according to the SEC. The SEC’s complaint alleged that Secured Income Group and McDermott departed from their intended business model, and subsequently misrepresented material details of the investment.

Secured Income Group failed to originate real estate loans and it additionally sold off millions of dollars of its loans along with the corresponding security interests, according to the SEC. Due to the change in course, the outstanding principal value of the firm’s real estate loan collateral had been substantially less than what it actually owed to investors. The SEC is seeking permanent injunctions, disgorgements 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

Return to Archive

TESTIMONIALS

Previous
Next

I am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.

LATEST NEWS AND ARTICLES

September 5, 2025
Merrill Lynch Advisor Faces FINRA Disciplinary Action for Refusing to Cooperate with Investigation

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary proceedings against former Merrill Lynch broker Ali F. Chehab of Portland, Oregon. According to ThinkAdvisor, FINRA alleges that he refused to cooperate in an investigation into potential misconduct, including unauthorized trading and material misrepresentati...

September 4, 2025
Wells Fargo Ties $2,000 Bonus to Non-Solicitation Clause, Raising Advisor Concerns

Wells Fargo & Co. recently issued a $2,000 bank-wide award to its 215,000 employees, following the Federal Reserve’s June decision to lift its asset growth restrictions.

September 3, 2025
Kansas City Advisory Firms Agree to $25.5 Million Settlement Over No-Poach Allegations

Mariner Wealth Advisors, along with two other Kansas City-area firms, has agreed to a $25.5 million class action settlement over allegations that they illegally agreed not to solicit each other’s advisors.