Tr?id=566623520170033&ev=PageView&noscript=1

SEC Freezes Assets of Wells Real Estate Investment and Leaders Amid $56 Million Fraud Allegations

Posted on September 5th, 2024 at 1:47 PM
SEC Freezes Assets of Wells Real Estate Investment and Leaders Amid $56 Million Fraud Allegations

From the desk of Jim Eccleston at Eccleston Law

The Securities and Exchange Commission (SEC) has taken emergency action against Wells Real Estate Investment, LLC, its CEO Janalie C. Bingham, and Jean Joseph, a previously convicted felon, for allegedly defrauding investors out of $56 million. The SEC’s complaint claims that the defendants misled approximately 660 investors nationwide, many of whom invested their retirement savings, into their fraudulent scheme.

According to SEC.gov, the defendants falsely claimed that Wells managed a $450 million real estate portfolio focused on South Florida and that investor funds were solely used to purchase and improve properties. Starting in January 2020, the defendants allegedly used unregistered sales agents to promote Wells' "Assets-to-Income Program," which offered promissory notes supposedly backed by real estate and promised returns ranging from 12 percent to as high as 99 percent over three years.

In reality, the SEC alleges that only $11 million of investor funds were used to purchase properties, which were heavily mortgaged and failed to generate enough income to meet the promised returns. The complaint also accuses Bingham and Joseph of diverting $28 million of investor funds into speculative futures and options trading, resulting in $11.9 million in losses. The defendants allegedly paid $6.9 million in undisclosed commissions to sales agents and used about $10 million in a Ponzi-like scheme to pay interest and redemption requests from earlier investors. Furthermore, Bingham and Joseph are accused of personally misappropriating $1.8 million and transferring $1.95 million worth of Wells-financed properties to themselves.

 

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

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

1774884494 Law
March 30, 2026
SEC and CFTC Plan Coordinated Examinations and Enforcement Efforts

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) plan to coordinate examinations and enforcement actions involving firms that fall under both agencies' jurisdiction, signaling a renewed effort to streamline regulatory oversight, according to AdvisorHub.

1774622627 Law
March 27, 2026
FINRA Charges Former Pruco Securities Representative With Forging Dozens of Customer Signatures on Annuity Applications

The Financial Industry Regulatory Authority (FINRA) filed a disciplinary complaint against former Pruco Securities representative Avinesh Shankar alleging he forged customer signatures on annuity paperwork to obtain commissions, according to ThinkAdvisor.

1774540693 Law
March 26, 2026
FINRA Bars Former Morgan Stanley Financial Advisor After Refusal to Cooperate with Investigation

The Financial Industry Regulatory Authority (FINRA) has barred former Morgan Stanley financial advisor Gregory V.