The Securities and Exchange Commission has charged Thomas D. Renison and Timothy J. Allcott, principals of a Peabody, Mass.-based investment firm, ARO Equity, with fraud.
The SEC alleges that the two made false statements to current and prospective retail investors about ARO Equity's performance and used investor funds to pay interest to other investors. Such actions constitute a Ponzi scheme.
According to the SEC’s complaint, Mr. Renison, of South Glastonbury, Conn., was barred from the securities industry by the SEC in July 2014. Nevertheless, the SEC alleges that from at least July 2015 through June 2018, Mr. Renison, along with Mr. Allcott, of Peabody, Mass., formed ARO Equity and raised approximately $6 million from at least 15 investors.
The SEC is seeking a permanent injunction against the firm, conduct-based injunctions against its two principals, disgorgement plus prejudgment interest, civil penalties, and an order from the court requiring Mr. Renison to comply with the SEC's 2014 bar.
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