SEC freezes assets of group charged with $55 million Ponzi scheme

SEC freezes assets of group charged with $55 million Ponzi scheme
Daniel B. Rudden and Denver-based Financial Visions allegedly defrauded 150 investors
JUL 27, 2018
The Securities and Exchange Commission froze the assets of a Denver-based group of companies and their principal, and charged the group with defrauding at least 150 investors in a $55 million Ponzi scheme. Daniel B. Rudden and a group of companies operating under the name Financial Visions allegedly issued promissory notes to fund the companies' operations providing short-term financing for funerals and related expenses. Investors were promised annual returns of 12% or more. Mr. Rudden and Financial Visions could not be reached for comment. (More: SEC charges RIA and CEO with putting $19 million of client money into risky investments) Mr. Rudden is charged with using new investor funds to pay interest and redemptions to existing investors since 2010 or 2011. The SEC alleged that Mr. Rudden concealed the Financial Visions companies' true financial performance and condition. Mr. Rudden is also charged with representing the business as successful to existing and prospective investors when he knew he was running a Ponzi scheme. (More: SEC charges eight in $102 million Ponzi scheme) The SEC complaint was filed in federal court in Denver, Colo., on July 19. The SEC seeks permanent injunctions, disgorgement plus interest and penalties. The SEC also named three entities, which the agency alleges were controlled by Mr. Rudden and received investor funds from the alleged Ponzi scheme, as relief defendants. (More: SEC bars Washington State RIA for selling unregistered promissory notes)

Latest News

RIA dealmaking accelerates as three firms hit AUM milestones
RIA dealmaking accelerates as three firms hit AUM milestones

Wealth Consulting Group, Coastline and Maridea report fresh capital, acquisitions and asset growth as advisor M&A keeps climbing

VastAdvisor closes $1 million SAFE round from advisor-side backers
VastAdvisor closes $1 million SAFE round from advisor-side backers

Carson Group's Dani Fava, Jason Pereira of Woodgate Financial, and Sally George of Convergency Partners led the raise as the growth-tech startup builds out its AI platform and leadership bench.

Wells Fargo adds three advisor practices as recruiting rebound continues
Wells Fargo adds three advisor practices as recruiting rebound continues

New teams from William Blair, Ameriprise and UBS bring more than $560 million in combined client assets to the firm's employee and independent channels.

UBS will pay advisors 'handsomely' for banking starting next year
UBS will pay advisors 'handsomely' for banking starting next year

Regulators this year approved UBS Bank USA’s conversion to a nationally chartered bank.

SEC accuses Tricolor executives of hiding $800 million collateral hole
SEC accuses Tricolor executives of hiding $800 million collateral hole

How a subprime lender’s car-loan bonds allegedly unraveled before bankruptcy.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income