SEC Charges Texas Advisor and Three Individuals with Defrauding Retail Investors

Posted on May 19th, 2021 at 11:53 AM

From the Desk of Jim Eccleston at Eccleston Law LLC:

On May 13, the Securities and Exchange Commission (SEC) filed suit against Texas-based investment advisor Knight Nguyen Investments and three individuals for allegedly planning to invest funds from retail investors in at least five fraudulent securities offerings. According to the SEC filing, Knight Nguyen’s majority owner Chris Lopez and advisor Forrest Jones advertised the firm as a reputable investment advisor that specializes in low-risk alternative investments. 

The SEC also alleges that Lopez and Jones mostly targeted older and unsophisticated investors by informing them that Knight Nguyen invested only in “proven” businesses that matched the firm’s investment criteria. However, the complaint alleges that Chris Lopez has no experience as a securities professional or with alternative investments before creating Knight Nguyen. In fact, the client funds were invested only in high-risk securities issues by companies that were owned or controlled by Lopez, according to the complaint. Between March 2016 and September 2018, Lopez and Jones raised nearly $3.7 million from at least 70 advisory clients and retail investors due to the misrepresentations. 

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

Tags: eccleston, eccleston law, sec, defrauding

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