Court orders Georgia RIA to disgorge $169,000 in fraud case

A federal district court in Washington, D.C., has ordered Ikenna "Ike" Ikokwu, a Cumming, Ga.-based RIA, to pay a civil penalty of $80,000, and — along with his companies, Winning the Money Game with Ike, and Winning the Money Game — to pay disgorgement of $169,311.64 plus prejudgment interest of $6,869.93. Mr. Ikokwu and his companies had been charged with fraud by the Securities and Exchange Commission. The SEC alleged that Mr. Ikokwu persuaded more than 20 clients of his companies to collectively invest $5 million in securities issued by FutureGen, a company the agency previously charged with defrauding investors. The complaint against Mr. Ikokwu and his companies also alleged that Mr. Ikokwu received undisclosed "kickbacks" of over $100,000 from FutureGen. The SEC said he also allegedly told investors that he conducted extensive due diligence into FutureGen prior to making his recommendation, "when, in reality, he did little or no research on the company". The SEC also barred Mr. Ikokwu from the securities industry, although he has the right to reapply after five years. Separately, the court entered an order approving a settlement agreement between the receiver appointed to administer the assets of FutureGen and Mr. Ikokwu, under which he agreed to repay an additional $64,796.43 to injured investors.