U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23347 / September 15, 2015
Securities and Exchange Commission v. Jason Mogler, et al., Civil Action No. 15-cv-01814-DKD (D. Ariz., filed September 11, 2015)
SEC Charges Five Arizona Residents with Stealing Millions from Investors to Fund Travel and Entertainment Sprees
The Securities and Exchange Commission charged five Arizona residents with stealing millions of dollars from investors to make car payments, buy clothes, and fund travel and entertainment at luxury resorts, casinos, and strip clubs.
The SEC alleges that Jason Mogler, James Hinkeldey, Casimer Polanchek, Brian Buckley and James Stevens misappropriated roughly 97 percent of the $18 million they raised from 225 investors who were told the funds would be used to acquire and develop beachfront property in Mexico as well as to operate recycling facilities and purchase foreclosed residential properties for resale. They repeatedly lied about the purported progress of the investments to calm worried investors as time extended past when their promissory notes should have been repaid. In certain instances they made Ponzi-like payments to investors threatening them with lawsuits by using money from new investors, which Mogler termed "robbing Peter to pay Paul."
According to the SEC's complaint filed in U.S. District Court for the District of Arizona:
The SEC's complaint charges Mogler, Hinkeldey, Polanchek, Buckley, and Stevens with violating federal antifraud laws and related SEC rules. The SEC seeks disgorgement of ill-gotten gains plus prejudgment interest and penalties as well as permanent injunctive relief.