National investment fraud lawyers KlaymanToskes issues an update to customers of A.G. Morgan Advisors, nearly a year after the company’s owner VINCENT JEROME CAMARDA (CRD# 2463703) and the company’s Chief Compliance Officer (“CCO”) JAMES EDWARD MCARTHUR (CRD# 2797856) were charged by the SEC for fraudulently offering and selling more than $75 million in securities. The charges are in connection with a more than $500 million unregistered alternative investment offering known as Complete Business Solutions Group Inc. (doing business as Par Funding).
Investors who suffered losses with Vincent J. Camarda or James E. McArthur and had accounts at IBN Financial Services, Traderfield Securities, or American Portfolios Financial Services may hold their brokerage firm liable in a FINRA arbitration claim for selling away – a securities violation.
Investors that suffered losses in Par Funding/Complete Business Solutions Group and/or at A.G. Morgan Advisors are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com for a free and confidential consultation to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
On June 9th, 2022, the Securities and Exchange Commission filed a complaint naming A.G. Morgan Advisors (“AGM”), its principal Vincent J. Camarda and its Chief Compliance Officer (“CCO”) James E. McArthur, alleging that they “solicited investors and offered or sold promissory notes to investors in connection with a more than $500 million unregistered fraudulent offering” with lending company Complete Business Solutions Group, doing business as Par Funding.
The SEC’s complaint alleges that in 2016, Vincent Camarda, on the behalf of AGM, began borrowing money from Par Funding through several purported “merchant cash advance” transactions and that the firm owed Par Funding approximately $750,000 by July 2017. By February 2018, AGM owed Par Funding and other creditors $2.63 million. Par Funding allegedly raised over $500 million from investors nationwide through the offer and sale of unregistered promissory notes.
According to the Commission, “From August 2017 until November 2017, and again from December 2018 until July 2020, Camarda and McArthur raised at least $75 million from investors in connection with Par Funding’s unregistered securities offering.” The brokers generally offered investors 12% percent interest with the return of principal after 12 months, later creating an Investment Fund known as the “AGM Fund I” which allegedly provided a 12% or 14% return to investors depending on whether the investor invested less than or more than $1 million.
The complaint’s findings state that the Private Placement Memorandum (“PPM”) for the AGM Fund I (originally dated October 10, 2018) disclosed that “4000 Units” were being offered of “$100,000,000 Aggregate Amount 12%-14% Promissory Notes.” The PPM also disclosed that the investments involved “a high degree of risk” and that AGM Fund I “is an early stage company that has been organized to operate as a lending company to merchant cash advance businesses.” AGM also created the “AGM Fund II”, which provided a 9% or 11% return depending on whether the investor invested less than or more than $1 million.
Camarda allegedly engaged in a breach of fiduciary duty and created a conflict of interest when he “told at least two investors that it was a safe investment, while failing to disclose that his company AGM was in debt to Par Funding and that Camarda was a guarantor on that debt.” The SEC’s findings state that AGM, Camarda and McArthur collectively received more than $7 million in sales compensation from Par Funding.
Through their misconduct and fraudulent actions, AGM, Camarda and McArthur allegedly violated Sections 5(a) and 5(c) of the Securities Act, 15 U.S.C. §§ 77e(a) and 77e(c). AGM and Camarda were found to have further violated Section 206(1) of the Advisers Act, and Section 206(2) of the Advisers Act. The SEC issued an Order directing “all of the defendants to disgorge all ill-gotten gains received within the applicable statute of limitations, including prejudgment interest, resulting from the acts or courses of conduct alleged in this Complaint,” and demanded a jury trial take place.
In July 2020, the SEC filed a complaint, an emergency action and obtained a temporary restraining order and an asset freeze to stop Complete Business Solutions Group’s (doing business as Par Funding) fraudulent scheme. The complaint alleged spouses Lisa McElhone and Joseph W. LaForte orchestrated the scheme and charged charges all defendants 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, and the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act. The SEC is seeking disgorgement of ill-gotten gains, prejudgment interest, and civil penalties.
Vincent Jerome Camarda (CRD# 2463703)
According to the SEC, Vincent Jerome Camarda is currently registered as an investment advisor with A.G. Morgan Financial Advisors in Massapequa, NY.
Camarda was previously registered as a broker and investment advisor with IBN Financial Services from 2021 to 2022 in Massapequa, NY. On June 17th, 2022 he was permitted to resign from the firm in connection with the SEC’s fraud complaint.
From 2019 to 2020, Camarda was registered as a broker and investment advisor with Traderfield Securities in Massapequa, NY. From 2014 to 2018, Camarda was registered as an investment advisor with American Portfolios Financial Services in Holbrook, NY.
James Edward McArthur (CRD# 2797856)
According to the SEC, James Edward McArthur is currently registered as an investment advisor with A.G. Morgan Financial Advisors in Massapequa, NY.
McArthur was previously registered as a broker and investment advisor with IBN Financial Services from 2021 to 2022 in Massapequa, NY. On June 17th, 2022 he was permitted to resign from the firm in connection with the SEC’s fraud complaint.
From 2019 to 2020, McArthur was registered as a broker and investment advisor with Traderfield Securities in Massapequa, NY. From 2014 to 2018, McArthur was registered as a broker and investment advisor with American Portfolios Financial Services.
As investment advisors registered with the SEC, Vincent J. Camarda and James E. McArthur had a fiduciary duty to their advisory clients, which they breached by failing to disclose AGM’s debt to Par Funding, engaging in private securities transactions, and through Camarda’s personal guarantees to investors relating to the unregistered securities sold.
Under securities rules and regulations, AGM and its financial professionals are responsible for disclosing all material facts to their customers (including a duty to tell customers about conflicts of interest involving AGM and its representatives).
Additionally, brokerage firms are required to supervise their advisors, including their outside business activity. KlaymanToskes believes that IBN Financial Services, Traderfield Securities, and American Portfolios Financial Services failed to supervise Camarda and McArthur while they were “selling away” from the firms, leaving the firms liable in FINRA arbitration claims.
Investors that have suffered losses as a result of their advisor’s violations of securities rules may hold their brokerage firm and financial professional liable through a FINRA arbitration claim. Contact KlaymanToskes today at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to learn more about the arbitration process.
We offer legal services on a contingency basis, meaning we do not collect attorney’s fees unless we are able to obtain a recovery for you.
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