Securities Arbitration Lawyers BlogSEC Charges Essex Capital Corporation and Securities Fraud Recidivist Ralph Iannelli in $80 Million Fraud
On June 6, 2018, the Securities and Exchange Commission (the “SEC”) charged Essex Capital Corporation and its founder, Ralph Iannelli, with defrauding investors in connection with the sale of over $80 million in promissory notes. Silver Law Group is investigating potential claims against third parties for losses in Essex Capital Corporation.
According to the SEC’s complaint, Iannelli and Essex Capital Corporation induced approximately 70 investors to collectively invest over $80 million dollars in the company’s failing equipment leasing business through two (2) unnamed registered investment advisors. Iannelli and Essex Capital Corporation induced these investors by making false and misleading statements and illusory personal guarantees to these two registered investment advisors.
The first investment advisor, based out of Santa Barbara, California, had been recommending Essex Capital Corporation to its customers since 2002. Between 2015 and 2017, this investment advisor invested over $8.1 million on behalf of over 20 customers in Essex Capital Corporation. According to the SEC complaint, a major reason this investment advisor recommended Essex Capital Corporation customers to invest were due to false financial statements prepared by Essex Capital Corporation’s outside accountant.