SEC Files Civil Investment Fraud Charges Against Delray Beach, Florida Executive
On May 16th, 2018, the Securities and Exchange Commission (SEC) announced investment fraud charges against Brent Borland. Mr. Borland has a residence in Manhattan, New York and a second residence in Delray Beach, Florida. According to investigators, Mr. Borland misappropriated nearly $6 million in investor funds.
While investors were informed that their money was going into an international infrastructure development project, the SEC contends that a large portion of it was siphoned off for Mr. Borland’s personal use. Here, our Miami securities fraud lawyers review the allegations against Mr. Borland. All of the information contained within this article has been sourced directly from the official SEC complaint, which was filed in the United States District Court for the Southern District of New York.
SEC Complaint: Brent Borland of Borland Capital and the Belize Infrastructure Fund
Money Was Raised for an Infrastructure Project in Belize
According to the SEC complaint, the relevant period in the case runs from 2014 through 2017. During that time, Mr. Borland used two companies that he controlled (Borland Capital, LLC and Belize Infrastructure Fund, LLC) to raise money from investors. These two funds were both advertised as ‘alternative investment opportunities’. At least 44 different investors put a combined $21.9 million into these companies through the purchase of promissory notes. Under the terms of the promissory notes that were offered to the investors, their investment capital was largely meant to finance the development of an international airport in Belize.
At Least $5.8 Million Was Siphoned Off
Unfortunately for investors, the SEC believes that a significant portion of the capital was misappropriated by Brent Borland. Investigators allege that Mr. Borland used another company that he owned and controlled (Relief Defendant Canyon Acquisitions, LLC) to funnel money away from financing of the international airport and into his own personal accounts. Investor money was used to fund his lavish lifestyle, including making his mortgage and tax payments on a Florida mansion and paying his own personal credit card debts.
The SEC Has Frozen the Remaining Assets
To protect investors, the SEC has obtained an asset freeze on all companies controlled by Mr. Borland. According to the agency, Mr. Borland has violated several securities regulations, including anti-fraud laws. Currently, the agency is seeking the following civil penalties against Mr. Borland:
- Disgorgement of ill-gotten gains;
- Restitution of funds to damaged investors; and
- Additional appropriate civil penalties.
The SEC is also seeking to protect the remaining assets from being misused. Mr. Borland wife has been named as a relief defendant.
Get Help With Your Investment Fraud Claim
At Carlson & Associates, P.A., we are proud to be advocates for investors throughout South Florida. Our Miami securities fraud lawyers have decades of experience helping wronged investors recover full financial compensation for their losses. If you or a family member was a victim of investment fraud or broker negligence, please call our Miami office today at 1-(305)-372-9700 to arrange your confidential initial consultation.
Resources:
sec.gov/news/press-release/2018-89
sec.gov/litigation/complaints/2018/comp-pr2018-89.pdf