SEC Halts Florida’s Financial Advisor’s Fraudulent Securities Offering
On August 26th, 2020, the Securities and Exchange Commission (SEC) published a public announcement stating that emergency regulatory action against a South Florida financial advisor and his investment entity. According to allegations raised by the agency, Coral Gables Asset Management LLC and its owner David C. Coggins defrauded investors. Below, our South Florida securities fraud team lays out the details of the charges filed by the SEC.
Investment Fraud Charges: Florida Financial Advisor David C. Coggins
Background & Facts
The SEC sought emergency action in the United States District Court for the Southern District of Florida. The primary defendant named in the case is David C. Coggins. Mr. Coggins is listed as a resident of Miami, Florida. A private financial advisor, he is the sole owner and operator of a company called Coral Gables Asset Management LLC (CGAM). He also owned and controlled two other related investment entities that were listed as relief defendants in the SEC’s complaint: Coral Gables Asset Holdings, L.P. and Coral Gables Capital, L.P.
Allegations of Misconduct
The Securities and Exchange Commission alleges that Mr. Coggins and his company CGAM solicited money from private market investors by materially and substantially misrepresenting the recent performance of his fund. For instance, the SEC cites marketing materials presented to an individual investor. Those documents—allegedly touted by David C. Coggins—showed more than three consecutive years of positive returns on a monthly basis.
The true performance of the fund was radically different. In fact, the SEC believes that CGAM lost money on a monthly basis more than two thirds of the time over the last three years. Among other things, Mr. Coggins is believed to have created fake brokerage account records, fraudulent investment statements, and illegitimate audit records. By doing so, he sought to entice new investors into his fund. At the same time, Mr. Coggins was allegedly siphoning off and misusing investor funds to cover his own lavish personal expenses.
Asset Freeze and Proposed Sanctions
While the SEC believes that David C. Coggins engaged in a complicated scheme to conceal wrongdoing, the totality of the allegations against him are relatively straightforward: He misrepresented himself as a successful fund manager to fraudulently solicit investors and he misused investor money. The federal agency emergency action is meant to protect actual and prospective investors from fraudulent conduct. In addition, the SEC is seeking all applicable legal sanctions against Mr. Coggins and Coral Gables Asset Management LLC, including disgorgement of illegitimate profits and payment of restitution to investors.
Contact Our South Florida Investor Rights Attorneys for Professional Guidance
At Carlson & Associates, P.A., our Miami investment fraud attorneys are experienced representatives for investors. Did you suffer losses because of financial advisor fraud or misconduct? We are here to explain your rights and options. Call our securities fraud lawyers now for a strictly confidential review and assessment of your case. We are more than ready to protect your best interests and help you seek fair financial compensation for your investment losses.
Resource:
sec.gov/news/press-release/2020-193
