SEC Charges Joshua W. Coleman With $200 Million Loan Fraud

February 9, 2023

Investment Losses With Joshua W. Coleman of Frontier Solutions and Vesta Advisors? Contact KlaymanToskes

National investment fraud lawyers KlaymanToskes investigates Joshua W. Coleman (CRD# 5199629) after the North Wales, Pennsylvania-based adviser was charged by the SEC for obtaining over $200 million in illicit loan fraud.

If you invested with Joshua W. Coleman, you are encouraged to contact Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com to discuss recovery options.

Over $200 Million in Fraud

According to the SEC’s Complaint, from December 2018 to at least June 2022, Coleman ran a fraudulent scheme through Vesta Advisors, LLC and Vesta Ottawa Feeder LP whereby he obtained over $200 million in illicit loan proceeds. Coleman pledged over $160 million in advisory client assets as collateral for personal loans without the investors’ knowledge or consent, and deceived lenders by forging client signatures and falsifying account statements.

Coleman agreed to purchase an oil and gas venture for approximately $22 million, which included a $4 million nonrefundable deposit. To avoid losing his deposit when his attempt to solicit an investor failed, Coleman arranged for a bank to issue a $25 million line of credit to Vesta Advisors, secured by $40 million in customer funds without the customer’s approval.

When the customer attempted to transfer his funds, the bank informed the customer that his funds were collateralizing the $25 million credit line. Coleman claimed that the proceeds could not be transferred because he had invested in illiquid securities and needed time to unwind the positions, but then applied for a new $100 million line of credit using new customer funds to release the previous client’s funds. The scheme continued until Coleman ultimately defaulted on one loan, which resulted in the lender seizing $20 million in pledged client funds.

Investors of Joshua W. Coleman are encouraged to contact Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com to discuss recovery options.

About KlaymanToskes

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.