Show Cause Hearing Update
The Court intends to conduct a Show Cause Hearing via Zoom video conference on June 16, 2020 at 1:30 p.m.
The Court has set aside two hours for the hearing. See Court’s Notice (Doc. 92) here.
Announcements
Receiver Files First Quarterly Status Report
On May 8, 2020, the Receiver filed is First Quarterly Status Report. The Report may be viewed here.
Show Cause Hearing Update
The Show Cause Hearing previously scheduled for Wednesday, May 13, 2019 at 1:30 PM has been postponed pending further order of the Court. See Court’s ORDER CONCERNING JURY TRIALS AND OTHER PROCEEDINGS (Doc. 59) here. Please check back after May 29, 2020 for updates.
1099 Issues
If an investor has a question related to their 2019 Form 1099, please contact the EquiAlt office at 813-252-5112 or via email at Accounting@EquiAlt.com. The office staff, under the direction of the Receiver, will endeavor to answer your questions related to this year’s tax forms.
Show Cause Hearing Update
The Show Cause Hearing previously scheduled for Thursday, February 27, 2020, at 1:30 p.m., is rescheduled for Wednesday, May 13, 2019 at 1:30 PM.
Tampa investment firm accused of $170 million Ponzi scheme
Federal regulators say two EquiAlt executives used millions of dollars for luxury cars, fancy watches and chartered jets.
By Richard Danielson – Tampa Bay Times
TAMPA — The U.S. Securities and Exchange Commission is accusing a Tampa real estate investment firm and its founder of running a Ponzi scheme that raised $170 million from about 1,140 investors and misappropriated millions of dollars to pay for sports cars, collector wristwatches and chartered jets.
Federal regulators sued EquiAlt, its owner and chief executive officer, Brian Davison of Tampa, and its managing director, Barry Rybicki, of Phoenix, Ariz., in federal court in Tampa last week. U.S. District Judge Mary Scriven has since frozen EquiAlt’s assets, ordered the company not to destroy documents and appointed a receiver to manage its affairs while the case is pending.
SEC Charges Real Estate Company and Executives With Defrauding Retail Investors, Obtains Emergency Relief
FOR IMMEDIATE RELEASE
Washington D.C., Feb. 18, 2020 —
The Securities and Exchange Commission today announced an emergency enforcement action and a temporary restraining order and asset freeze against Florida-based private real estate firm EquiAlt LLC, its CEO Brian Davison, and its Managing Director Barry Rybicki, in connection with an allegedly fraudulent unregistered securities offering that raised more than $170 million from at least 1,100 investors, a number of whom invested their retirement funds.
According to the SEC’s complaint, unsealed Feb. 14, 2020, in the U.S. District Court for the Middle District of Florida, EquiAlt, Davison, Rybicki, and the entities they control, fraudulently raised millions of dollars by making material misrepresentations to investors about EquiAlt’s investment strategy, the financial condition of the investments, and the uses of investor proceeds. The defendants allegedly told investors they would pool investor funds and use approximately 90% of the money to purchase undervalued real estate, rent or flip the properties, and pay investors 8-10% annual interest generated from the real estate investments. In reality, the complaint alleges, a large portion of investor money went to support Davison’s and Rybicki’s lavish personal spending, and less than 50% of the funds raised were used to invest in properties. In addition, money from one investment fund controlled by EquiAlt was allegedly used to make Ponzi-like payments to investors in another fund.
Exhibits To Plaintiff Securities And Exchange Commission’s
Emergency EX PARTE motion and memorandum of law for temporary restraining order, asset freeze, and other injunctive relief sought.
