The Securities and Exchange Commission is charging Frederick Alan Voight with Texas securities fraud in running an alleged $114 million Ponzi scam that bilked investors. The regulator claims that the Houston-area man defrauded over 300 investors via multiple offerings of promissory notes that his companies DayStar Finding LP and F.A. Voight & Associates LP had issued.
In its complaint, the SEC said Voight recently raised $13.8 million that he claimed would be a loan to InterCore Inc., a company start up. The loan was supposed to fund the deployment of a DADS-a Driver Alertness Detection System.
Voight allegedly told prospective investors that the technology was to be installed in millions of buses and trucks. He promised 30 to 42% yearly interest rates on the promissory notes to be paid out by the company, which he said it could do “many, many times over.”
However, the Commission claims that Voight as aware he was making false claims because he was an InterCore board member and knew that the company was financially beleaguered and could not repay the loans. Voight allegedly used the money from new investors to pay off earlier investors or funnel them to InterCore via another two partnerships that belonged to him. The money would then be sent to subsidiary InterCore Research Canada, Inc.
In the meantime, Voight would have made money off stock warrants and fees to facilitate these transactions. The investors were not aware of the fees.
The whereabouts of some $22 million of clients’ funds remains unknown.
Voight settled the SEC case without denying or admitting to the charges.
In Texas, our Houston securities fraud lawyers represent investors throughout the state. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.
Read the SEC Complaint (PDF)