Vincent Carmada sued by the SEC for fraud? (2023)
Vincent Carmada is a scammer who faced stringent action from the SEC. Learn about his illegal activities in this detailed review below:
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Why SEC Took Action Against Vincent Carmada?
The Securities and Exchange Commission currently charged enrolled investment advisory firm A.G. Morgan Financial Advisors, LLC (“AGM”) of Massapequa, New York, AGM’s owner Vincent Carmada.
It also includes AGM’s former Chief Compliance Officer James McArthur with illegal marketing and selling investments in connection with a more than $500 million not registered illegal offering with lending company Complete Business Solutions Group Inc. Par Funding.
The SEC previously charged Par Funding and others with running a fraudulent operation that obtained hundreds of millions of dollars from investors across the country.
Based on the SEC’s complaint, the defendants earned more than $7 million in remuneration for raising more than $75 million from more than 200 individuals associated with Par Funding’s unregistered securities selling from at least August 2017 to July 2020.
According to the SEC, the accused, Vincent Carmada distributed and sold securities to investors without the consent of the authorized broker-dealer with which they were affiliated. The complaint further claims that in 2017, AGM and Vincent Carmada failed to notify advising clients that AGM had borrowed and failed to repay $750,000 from Par Funding.
The complaint, submitted in a US district court in the Eastern District of New York, accuses AGM, Camarda, and McArthur of breaking the Securities Act of 1933’s registration provisions and performing as unregistered broker-dealers in contravention of the Securities Exchange Act of 1934, as well as AGM and Vincent Camarda of violating the Investment Advisers Act of 1940’s antifraud provisions. Permanently injunctions, disgorgement plus prejudgment interest, and monetary civil penalties are all sought by the SEC.
The inquiry was led by Christine M. Hernandez and Crystal C. Ivory of the SEC’s Miami region Office, with assistance from Raymond J. Slezak, Michael P. O’Donnell, and Mary Beth Lynch of the Division of Examinations, and was overseen by Elisha L. Frank, Fernando Torres, and Glenn S. Gordon. The SEC’s lawsuit will be handled by Amie R. Berlin, who will report to Teresa Verges. The SEC appreciates Finra’s assistance.
Case study filed against Vincent Carmada
Alan Rosca and his associates at Rosca Scarlato LLC have been examining potential investment loss recovery possibilities on behalf of investors who believe they have lost funds deposited in the Par Funding alleged scheme at the direction of Vincent Carmada.
According to public records reviewed by attorney Alan Rosca, A.G. Morgan Financial Advisors, Vincent Carmada, James McArthur, and their related entities were accused of serious violations of securities rules and regulations in an allegation submitted by the Securities and Exchange Commission in United District Court for the Eastern District of New York. The matter is still pending.
Customers who invested in the claimed Par Funding fraud and need to assess their options for seeking compensation and/or filing claims may contact investor protection advocates Alan Rosca and Paul Scarlato.
Attorneys Rosca and Scarlato possess significant expertise in obtaining compensation for investor harm and litigating claims originating from securities law violations such as unregistered securities sales, breach of fiduciary responsibility, and fraudulent behavior. They often work on a contingency fee basis, do not seek any money upfront from the customers they represent, advance case expenditures, and are paid only if and when the case is successful.
In general, complaints that are not prosecuted timely may expire or else be lost. Customers of AGM / Camarda who believe they have experienced losses as a result of their investment in Par Funding and want to investigate their options for filing claims should move quickly.
An alert for the investors of Vincent Carmada
According to the SEC’s accusations, Vincent Carmada signed three agreements for loans with Par Funding between 2016 and 2017, under which Par Funding borrowed or advanced AGM a total of $750,000.
The loans were reportedly advanced on future receivables Par Funding expected from AGM’s advising business, and the loans were asked to allow Vincent Carmada to continue AGM’s activities and avoid bankruptcy, according to the Commission.
According to the lawsuit, Camarda and McArthur allegedly started raising funds for Par Funding in August 2017 under a Finder’s Agreement by advising investors to acquire Par Funding promissory papers that purportedly offered 12% interest and a return of principle after one year. Camarda and McArthur reportedly encouraged twelve AGM clients to spend $2.6 million in Par Funding over the next three months.
The SEC reports that AGM reimbursed Par Funding in full in February 2018. According to the SEC complaint, Camarda and AGM neglected to disclose the financing agreements between AGM and Par Funding while courting investors, and consequently, they were in breach of fiduciary duty.
The Commission alleges that between late 2018 and July 2020, Vincent Carmada, James McArthur, and AGM continued contacting shareholders in Par Funding through two investment funds designated AGM Fund I and AGM Fund II.
According to the complaint, Vincent Carmada and McArthur reportedly offered AGM monies promissory notes and subsequently transferred investor monies to Par Funding, which in turn issued Par Funding promissory notes to AGM Funds.
According to the SEC, Camarda and McArthur raised more than $60 million from investors and AGM clients through the sale of AGM Fund I notes between December 2018 and the end of 2019.
What do know about Par Funding Alleged Fraudulent Scheme?
Furthermore, between June 2013 and December 2017, McArthur had been licensed as a financial consultant with LPL Financial, American Portfolio Advisors, and A.G. Morgan Financial Advisors, according to his IAPD Report. James McArthur has been a client of A.G. Morgan Financial Advisors LLC since February 2021.
Complete Business Solutions Group Inc. d/b/a Par Funding is a Philadelphia-based organization with operations in Florida that supposedly offered short-term loans to small businesses and is alleged to have financed in excess of $600 million in loans.
Between 2018 and 2020, Par Funding was facing enforcement actions by Pennsylvania, New Jersey, and Texas securities regulators for suspected violations of state securities laws. The orders made by each state regulator are listed below in the Important Case Documents section.
The Securities and Exchange Commission filed an accusation against Par Funding, affiliated entities, and its controlling individuals in July 2020, seeking a temporary injunction and a freeze of assets to allegedly prevent an alleged fraudulent scheme that allegedly raised nearly $500 million from approximately 1,200 investors across the country through a network of sales agents.
The court issued a temporary freeze on assets and approved the SEC’s request for the appointment of a receiver, according to the docket. The bankruptcy case is still active.
Important case docs against Vincent Carmada
What do you know exactly about Vincent Carmada?
Vincent Carmada works as a financial counselor in Massapequa. Vincent Carmada is the founder, CEO, and Chairman of AG Morgan Financial Advisors, a financial planning and investment organization. Vincent Carmada has been assisting individuals in reaching their financial objectives for over twenty-eight years.
The ultimate conclusion is that Vincent Carmada is the architect of various fraudulent schemes, which is why he and his associates were charged by the SEC. The moral of this story is to be cautious of such fraudulent individuals.