SEC Files Suit Against Georgia Advisor Over Misappropriation of Client Funds

Posted on August 8th, 2022 at 2:25 PM
SEC Files Suit Against Georgia Advisor Over Misappropriation of Client Funds

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) is filing suit against a Georgia-based advisor, Christopher Burns, who allegedly misappropriated client funds.

Between April 2017 and October 2020, Burns operated as the sole owner of Investus Advisors, which managed funds for at least 90 advisory clients, according to the SEC. The SEC’s complaint alleged that Burns misappropriated investor funds, falsely informed investors how the funds were invested, and misrepresented how the clients’ investments were performing. Burns recommended that his clients purchased promissory notes issues by two entities that were owned solely by Burns, according to the SEC.

Burns falsely informed investors that the notes were included in a peer-to-peer loan program, known as Peer Connect, and that the proceeds of the note sales would be loaned to small businesses. According to the SEC, Burns informed investors that the notes offered returns between 5% and 15% per year. Instead, Burns misappropriated a substantial portion of the funds and utilized the remaining funds to make Ponzi-style payments to previous investors. According to the SEC, Burns sold at least $10 million in fraudulent promissory notes to investors.   

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

Tags: eccleston, eccleston law, sec, georgia advisor

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