SEC Files Fraud Charges in $18M Arizona Securities Scam that Bilked 225 Investors

The Securities and Exchange Commission is charging James Hinkelday, Jason Mogler, Brian Buckley, Casimer Polanchek, and James Stevens with bilking millions of dollars from investors. The regulators claims that the Arizona residents misappropriated about 97% of $18 million from 225 investors who thought their money was being used to acquire and develop beachfront property in Mexico, run recycling facilities, and buy foreclosed residential properties to resell. The men are accused of making Ponzi-like payments to investors who threatened to sue them.

In its complaint, the SEC says that the men-none of whom were registered with the agency to sell investments-solicited prospective investors via magazine, radio, and Internet ads, along with cold calls, marketing materials, and investor presentations. Polanchek purportedly looked for investors at cruises, bars, and self-help seminars. The men also were involved in The Investment Roadshow, which is an Arizona radio program that instructed listeners on how to use self-direct IRAs to put money in their companies. Prospective investors were guided to a website where they could schedule appointments and join seminars to find out more about the investment opportunities.

The men are accused of using the investors’ money to purchase clothes, make car payments, and pay for travel and entertainment at casinos, luxury resorts, and strip clubs. Meantime, said the SEC, investors thought that their money was going into buying promissory notes from licensed brokers.

The SEC is charging the men with violating federal antifraud laws and regulator rules. The Commission wants disgorgement of ill-gotten gains, prejudgment interest, penalties, and permanent injunctive relief.

Please contact our Arizona securities fraud law firm today. We would like to offer you a free case consultation.

Read the Complaint (PDF)