William Apostelos and His Companies Charged with Fraud
The SEC released charges on October 30, 2015 alleging that William Apostelos and his companies, WMA Enterprises, Midwest Green Resources, and OVO Wealth Management conducted a fraudulent investment scheme. The complaint claims that the companies raised at least $66.7 million from about 350 investors since January of 2010.
The SEC claims that throughout the scheme, Apostelos knowingly made multiple misrepresentations to recruit prospective investors, including clients of OVO, a state-registered investment adviser. Apostelos told certain investors that their investment funds would be pooled with funds from other investors and invested in stock, precious metals, real estate, or used to make short-term loans at high interest rates to small businesses and farmers, with returns being generated by the underlying investments. He told other investors that he would place their funds in a pooled brokerage account and invest them in publicly traded stocks, bonds, and options.
In reality, Apostelos is alleged to have funneled nearly all the investor funds to WMA’s bank accounts and used them to make Ponzi-like payments to earlier investors and promoters, to finance other businesses he and his wife owned, and to pay for personal expenditures, including gambling.
The SEC’s complaint charges that WMA and Midwest Green violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (the “Securities Act”) and Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder. It charges that OVO violated Sections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities Act; Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 (“Advisers Act”). It charges that Apostelos violated Sections 5(a), 5(c), and 17(a) of the Securities Act; Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder; and Sections 206(1), 206(2), and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder. The SEC also charges that Apostelos aided and abetted and is liable as a control person for the violations of WMA and Midwest Green.
The SEC’s complaint further alleges that Apostelos’s wife, Connie Apostelos, and three businesses that she controls, Apostelos Enterprises, Inc., Coleman Capital, Inc., and Silver Bridle Racing, LLC, benefited from the fraudulent scheme by receiving at least $7 million in illicit earnings, to which they have no legitimate claim and seeks disgorgement of those funds.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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Brenda Hamilton, Securities Attorney
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