National investment fraud lawyers KlaymanToskes is investigating Crew Capital Group, LLC following SEC charges filed against the firm and its owner, Stephen Romney Swensen (CRD# 2885578), after the former broker and investment adviser allegedly operated a fraudulent investment offering that raised over $29 million from over 50 investors.
If you suffered investment losses with Stephen Romney Swensen and/or Crew Capital Group, LLC, you are encouraged to contact Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com to discuss recovery options.
On October 14th, 2022 the SEC filed charges against the Estate of Stephen Romney Swensen, a now deceased broker and investment adviser, who was registered with J.W. Cole Financial, Inc. in 2018 and with Allegis Investment Services, LLC from 2014 to 2018 in Clearfield, UT. Swensen was also associated with Wealth Navigation Advisors from 2018 to 2022 in Centerville, UT.
According to the SEC’s complaint, filed in the U.S. District Court for the District of Utah, Swensen allegedly defrauded over 50 investors of at least $29.3 million from approximately July 2011 until his death on July 6th, 2022. To induce customers to invest in Crew Capital Group, Swenson allegedly told investors “that Crew Capital was a safe investment fund paying a guaranteed minimum of 5% annually, and up to 10% annually depending on the performance of the S&P 500 index.”
Swensen also allegedly provided falsified documentation about the Crew Capital investments to some investors, which described Crew Capital as an “actively managed portfolio” that invested both in senior secured floating rate loans and options on the S&P 500 index. Several of these documents also falsely stated that Pacific Investment Management Company, LLC (“PIMCO”) was the sub-advisor to Crew Capital and that Crew Capital had been in existence since 1997.
The SEC’s investigation revealed that Crew Capital allegedly did not invest in any securities at all, and that instead, Swensen misappropriated nearly all of the investors’ funds to make Ponzi-like payments to other victims and to pay for personal expenses including the living expenses of his family and his mistresses, vehicles, and multiple private aircrafts.
Swensen diverted investor funds from Crew Capital to other entities he owned, including Relief Defendants Swensen Capital, LLC and Wingman, LLC. Swensen was also the sole trustee of a Wells Fargo bank account in Crew Capital’s name that he used to pool together Crew Capital investor funds.
The SEC’s complaint lists the following defendants:
The complaint goes on to state that although Swensen is now deceased, “Crew Capital continues to violate the federal securities laws by disseminating false and misleading statements to investors.” Swensen created a website for Crew Capital that is still operating and displaying fictitious “account information.” According to the SEC, no such accounts exist, and the remaining investor funds sent to Crew Capital are now being spent (and otherwise dissipated) by the named Defendants and Relief Defendants.
By the time of Swensen’s death, he had raised at least $29.3 million in investor funds in the Ponzi-like scheme and Crew Capital’s bank account received additional transfers of investor funds from the Bank of Utah of at least $7.1 million. The SEC’s complaint charges Swensen and Crew Capital with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
According to the SEC’s complaint, from approximately September 2013 to May 2018, Swensen worked with Jason Kimber (CRD# 6244188), who was a registered representative of Summit Brokerage Services, Inc. and Allegis Investment Services, LLC. See our related blog to learn more: “Jason Kimber: Over $13 Million in Investor Complaints Filed”.
From approximately May 2018 to May 2022, Swensen worked with Jacob Cazier (CRD# 6904198), an investment adviser representative of Wealth Navigation Advisors.
According to the complaint, in July 2022, one of Swensen’s related entities, Swensen Capital, LLC, received a new signatory to its bank account, Ronald S. Gibb, who became Swensen Capital’s sole manager. Swensen Capital received at least $978,429 in funds from Swensen’s fraud to which it has no legitimate claim.
Investors who suffered losses with Capital Crew Group, LLC, or who have suffered losses following recommendations by Stephen Romney Swensen, are encouraged to contact Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss their recovery options.
All cases are taken on a contingency basis, meaning we do not collect attorney’s fees unless we are able to make a recovery for you. KlaymanToskes has recovered over $250 million for investors in FINRA arbitrations cases alone.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com