This case is an example of what can go wrong if you suddenly find out the person or group you’re investing with is unregistered and goes on to commit fraudulent acts. In 2021 the Securities and Exchange Commission brought charges against Matthew J. Skinner of Santa Clarita, CA for conducting four unregistered and fraudulent real estate investment offerings in which he raised more than $9 million from over 100 investors. The SEC reminds us that “Those attempting to raise money in private offerings must still fully comply with the federal securities laws.”
The SEC’s complaint alleged Skinner, who touted himself to investors as a successful real estate investor and dealmaker, made multiple misrepresentations to investors and misappropriated millions of dollars of investor funds. The SEC contends Skinner told investors their money would be used to finance specific real estate projects or investments, projecting and, in some cases, guaranteeing double-digit annual returns.
The SEC alleges that instead, Skinner spent substantial amounts of investor funds on his personal expenses, including European vacations and payments for a Maserati and an Aston Martin. The SEC also alleged that Skinner used investor money to pay operational and marketing expenses unrelated to the specific projects and to make Ponzi-like payments to other investors.
Ipsen Due Diligence assists investors with a.) their due diligence needs before investing or b.) who suspect wrongdoing by Investment Sponsors, General Partners, and the like by investigating the matter and providing a forensic accounting report.
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