Recovering Losses caused by Investment Misconduct

Ohio-Based Investment Adviser Charged in Alleged $39 million Ponzi Scheme

Enrique F. Villalba, Jr. of Cuyahoga Falls, Ohio, has been charged by the United States Securities and Exchange Commission (“SEC”) with fraud in his running of an alleged Ponzi scheme.

The SEC’s complaint, filed recently in the United States District Court in Cleveland, alleges that Mr. Villalba solicited clients in California, Illinois, Ohio, Tennessee, and Washington through his former investment advisory business, Money Market Alternative, L.P.  According to the complaint, from 1996 through June 2009, Mr. Villalba attracted over $39 million in client investment.  During this time, he lost over $17 million of his clients’ funds through his trading activities.

He also allegedly misappropriated approximately $6 million of client funds.  Using the funds to purchase property, invest in two start-up coffee businesses he owned, make Ponzi-like payments to his clients, and pay himself management fees, salary, and his company’s overhead.

To cover up his misdeeds and investment failures, the complaint alleges that Mr. Villabla falsified account statements, which always showed that his clients' accounts had overall increased in value.

Mr. Villalba is facing numerous legal challenges.  The U.S. Attorney’s Office for the Northern District of Ohio filed criminal charges against Villalba on the same day the SEC filed its complaint.  The United States Commodities Futures Trading Commission has also filed a complaint against Mr. Villalba.  He is also facing civil suits in Ohio and Washington.