National investment fraud lawyers KlaymanToskes continues investigating A.G. Morgan Advisors, more than a year after the company’s owner Vincent Jerome Camarda and its Chief Compliance Officer (CCO) James Edward McArthur were charged with fraudulently selling more than $75 million in an unregistered investment offering known as Complete Business Solutions Group Inc. (doing business as Par Funding).
Investors who suffered losses with Vincent Camarda and/or James McArthur, and had accounts at American Portfolios Financial Services, IBN Financial Services, and/or Traderfield Securities may hold their brokerage firm liable in a FINRA arbitration claim for selling away.
Affected investors should immediately contact investment fraud attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com for a free and confidential consultation to discuss recovery options.
The SEC’s complaint alleges that Vincent Camarda, on the behalf of A.G. Morgan (“AGM”), began borrowing money from Par Funding through several purported “merchant cash advance” transactions in 2016. The SEC allegedly found that Par Funding raised over $500 million from investors nationwide through the offer and sale of unregistered promissory notes.
AGM allegedly owed Par Funding approximately $750,000 by July 2017. Less than one year later, by February 2018, AGM owed Par Funding and other creditors $2.63 million. According to the SEC, “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.”
AGM and its advisors allegedly offered investors 12% percent interest with a return of principal after 12 months. Camarda and McArthur also created 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.
Further, the SEC found that AGM, Camarda and McArthur collectively received more than $7 million in sales compensation from Par Funding. In July 2020, the SEC filed a complaint and an emergency action, obtaining a temporary restraining order and an asset freeze to stop Complete Business Solutions Group’s (doing business as Par Funding) fraudulent scheme.
As investment advisors registered with the SEC, Vincent Camarda and James 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 inform customers about conflicts of interest involving the firm and its representatives.
Brokerage and investment advisory firms are required to supervise their advisors’ outside business activities. 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 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