U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Colin Nathanson, et al.

On March 25, 2004, the SEC filed a civil complaint alleging that since 2001, Colin Nathanson and nine of his companies raised $29.5 million from over 1800 investors nationwide through various fraudulent investment schemes. The SEC alleged that the defendants lied to investors about how they would use investor funds and used the funds, without the investors' consent, to operate Nathanson's unprofitable businesses. The complaint also alleged that Nathanson used at least $1 million of investor funds to support his extravagant lifestyle and, in Ponzi-like fashion, caused over $5 million of the money raised to be paid to certain investors either as purported "returns" on their investments or repayments of their principal.

On August 26, 2004, the Court entered final judgments against Nathanson and his companies in which they consented to permanent injunctions and disgorgement of all of their funds and assets. The Court ordered Nathanson to disgorge $4.7 million, and he agreed to relinquish to the Court-appointed Receiver, Thomas A. Seaman, all of his real property as well as certain personal property. Payment of the remainder of the $4.7 million was waived based upon his demonstrated inability to pay.

For more information about the SEC's action, you can read Litigation Release Nos. 18642, 18861, and 18663.

You can learn the latest information about the Receivership by visiting the Receiver's website.



Modified: 10/31/2005