Brothers Charged by SEC in Ponzi Scheme Allegations
According to the Securities and Exchange Commission, two brothers have been charged after allegations of a Ponzi scheme. The accusations claim losses of $2.7 million from unsophisticated elderly investors.
In announcing the charges, the SEC claims that one of the brothers, Daniel Rivera, allegedly made false statements to roughly 30 investors from 2008 to 2014 informing them they could profit by investing in Robbins Lane, a real-estate ventured founded and owned by Daniel and his brother, Matthew Rivera. The complaint against the brothers claims they allegedly recommended the elderly investors to sell retirement assets so they could invest in the company.
The brothers allegedly created the Robbins Lane website and brochures that promised an opportunity for guaranteed monthly income. Instead, Daniel allegedly used the money he received from investors for personal expenses, some of which he supposedly transferred into the janitorial business at which his brother was a partner.
The SEC investigation found no investment portfolio for the real-estate venture, Robbins Lane. Furthermore, they found no way that the company would provide the guaranteed monthly income they allegedly promised the senior investors.
Without admitting or denying the charges, Daniel Rivera agreed to pay $1.9 million to investors plus a $160,000 civil penalty, and Matthew Rivera agreed to pay a $100,000 civil penalty and $20,000 to the investors. The companies owned and controlled by Daniel—Daniel Rivera Inc. and Rivera & Associates—agreed to pay $591,000.
If you invested and lost money with Daniel or Matthew Rivera, contact our securities fraud attorneys at Meyer Wilson. You can discuss your case with us in a free consultation.