EquiAlt Investor Represented by Goldman Scarlato & Penny Attorneys Files Suit for Compensation for His Investment Losses

CLEVELAND, April 15, 2021 /PRNewswire/ -- A registered investment adviser ("RIA") is the subject of a complaint filed by investor rights lawyers at the Goldman Scarlato & Penny law firm on behalf of an investor in EquiAlt alleged Ponzi scheme. The EquiAlt investor is seeking compensation for losses caused as a result of investing in the EquiAlt funds at the recommendation of the RIA's agent.

The EquiAlt investor's complaint alleges that the RIA, through its agent, failed to conduct adequate due diligence prior to offering and selling the allegedly fraudulent and unregistered EquiAlt securities. The complaint further alleges that the RIA' agent was in breach of fiduciary duties when he recommended and sold the unregistered EquiAlt securities. The RIA is also accused of violating securities laws and regulations by selling the EquiAlt unregistered securities, through its agent, to an unaccredited investor. No judgment has been entered as to the recently-filed allegations and there has not been a finding of liability as to any entities referenced in this release.

The EquityAlt Ponzi Scheme

In February 2020 the Securities and Exchange Commission ("SEC") filed a lawsuit against EquiAlt, its CEO Brian Davison, and its Managing Director Barry Rybicki.

The SEC alleged that starting January 2011, EquiAlt, Davison and Rybicki fraudulently raised $170 million for more than 1,100 investors, many of whom invested their retirement savings, by misrepresenting EquiAlt's financial condition, investment strategy, and the uses of investor proceeds. The SEC further alleged that a large portion of investments were spent by Davidson and Rybicki to fund their lavish lifestyle while using money from one of the EquiAlt's funds to make Ponzi-like payments to investors in another fund.

Separately, the SEC charged several sales persons for their alleged involvement in the EquiAlt scheme.

Investors in EquiAlt Funds May Contact the Goldman Scarlato & Penny Attorneys to Evaluate Potential Claims for Compensation

EquiAlt investors may contact the Goldman Scarlato & Penny securities attorneys Alan Rosca and Paul Scarlato with any questions regarding this matter and their investment losses, or to offer useful information, toll free at 888-998-0530, via email at [email protected] or [email protected], or through the contact form on the Equialt Investor Center page.

Copyright Goldman Scarlato & Penny PC ("GSP") 2021. This release contains attorney advertising. Visit investorlawyers.org for important disclosures and the GSP attorneys' respective admissions to practice law.

SOURCE Goldman Scarlato & Penny, P.C.