Washington state regulators claim advisor was running Ponzi-like fund

The Washington State Department of Financial Institutions last month filed civil charges against investment advisor representative Joel Frank, a registered investment advisor, Equilus Group Inc., and related businesses, alleging that Frank and the Equilus-branded businesses engaged in a Ponzi-like scheme to harm investors.

Frank and Equilus allegedly sold more than $39 million worth of investments in the Equilus Funds to more than 90 investors, at least 70 of whom are Washington investors, according to Washington regulators.

Frank then stole money from the Equilus Funds, made Ponzi-like payments to investors, created false account statements, made material misrepresentations to investors, sold unregistered and non-exempt securities, as well as other violations of securities rules.

The alleged misappropriation of client money occurred from between at least April 2017 and October 2025, according to Washington State. “In particular, the Division alleges that the parties distributed at least $779,777.43 to Joel Frank in unearned dividends for Frank’s personal benefit,” according to a statement in April from the Washington State Department of Financial Institutions.

Frank, who has been registered in the securities industry since 2014, and the businesses are based in Wenatchee, Wash. A call to the Equilus office on Monday was not returned.

The Washington State Department of Financial Institutions also obtained a temporary restraining order and preliminary injunction in Thurston County Superior Court against the parties allegedly involved in the matter.

The court also agreed to Washington State’s request to appoint a receiver, High Plateau Asset Management, over the entities. 

The receiver has the authority to: take control of investor funds, designate a successor investment adviser to oversee the funds, engage in an accounting, and determine the amount of misappropriated investor funds and any actions for recovery.

The Washington State Department of Financial Institutions “is taking these extraordinary measures in light of the significant investor harm we believe has been perpetrated by these individuals and organizations,” DFI Acting Director of Securities Anderson said in a statement. “This type of alleged activity is precisely why state regulatory oversight and examinations are crucial.”

The state’s order and charges suspends the registrations of Frank and Equilus and orders them to cease and desist from violations of the Securities Act. The Washington regulators are seeking to revoke the registration of Frank and Equilus, that they return the allegedly stolen money and that they pay a fine.