U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23635 / September 1, 2016
Securities and Exchange Commission v. Providence Financial Investments, Inc., Providence Fixed Income Fund, LLC, Jeffory Churchfield, Jack Jarrell, and Anthony Buzaneli, No. 0:16-cv-1877 SRN-FLN (D. Minn.)
SEC Obtains Emergency Order Prohibiting Anthony Buzaneli from Leaving the United States
On August 26, 2016, Judge Susan Richard Nelson of the District of Minnesota issued an order requiring Anthony Buzaneli to surrender his passports and prohibiting him from leaving the United States until further order of the Court. The order also freezes his assets, requires Buzaneli to provide an accounting, and requires Buzaneli to repatriate all of his assets to the United States.
The Court issued this order as a result of papers filed under seal by the Securities and Exchange Commission seeking emergency relief against Buzaneli and naming him as an additional defendant in the SEC's previously filed action against Providence Financial Investments, Inc. ("Providence Financial"), Providence Fixed Income Fund, LLC ("Providence Fund") and others. The order and the SEC's papers were unsealed by the court on August 30, 2016.
In the Amended Complaint, the SEC alleges that Buzaneli engaged in a scheme that defrauded investors in Providence Financial and the Providence Fund. The Amended Complaint also alleges that Buzaneli is liable for the violations of Providence Financial and the Providence Fund as a control person for those entities and that he is liable for aiding and abetting violations committed by Providence Financial and the Providence Fund. The original complaint was filed on June 7, 2016.
The SEC's Amended Complaint alleges that:
The SEC's Amended Complaint alleges that Providence Financial and Providence Fund violated Sections 5(a), 5(c), and 17(a)(2) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(b) thereunder; that Jarrell and Churchfield violated Sections 5(a) and 5(c) of the Securities Act and Section 15(a)(1) of the Exchange Act; and that Jarrell violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The Amended Complaint adds Buzaneli as an additional defendant and alleges that he violated Section 17(a)(1) and (3) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5(a) and (c) thereunder, that he is liable as a control person of Providence Financial and the Providence Fund under Section 20(a) of the Exchange Act for their violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and that he aided and abetted Providence Financial's and the Providence Fund's violations of Sections 5(a), 5(c), and 17(a)(2) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
The SEC's investigation in this matter is continuing.