Angelo A. Alleca, Summit Wealth Management, Inc., Summit Investment Fund LP et al., 1:12-cv-03261-WSD (U.S. District Court, N.D.Ga., Atlanta Division)
On September 19, 2012, the SEC obtained a permanent injunction, an asset freeze and other relief against Angelo A. Alleca (Alleca), Summit Wealth Management, Inc. (Summit Wealth), Summit Investment Fund, LP (Summit Fund), Private Credit Opportunities Fund, LLC (Credit Fund) and Asset Class Diversification Fund, LP (Asset Fund).
According to the complaint, Alleca created Summit Fund as a "fund-of-funds," which was supposed to invest money of advisory clients of Summit Wealth in other funds and investment products rather than directly in stocks and other securities. Instead, Alleca engaged in risky trading with investors' funds and incurred substantial losses. The SEC alleged that Allega started at least two successive funds—Credit Fund and Asset Fund—to try to recoup the losses, but incurred further losses with the funds raised. The SEC also alleged the scheme resulted in approximately $17 million in investor losses. According to the complaint, Summit Wealth and the funds issued false account statements to the investors, and Alleca's fraud was, in part, a Ponzi scheme, in that monies raised by some of the funds were used for redemptions and other payments to investors in other funds.
On September 21, 2012, the Court appointed Robert D. Terry as Receiver over Summit Wealth and the three funds. Mr. Terry has established a website for the Receivership at swmreceivership.com. If you have questions, you can contact Mr. Terry by email at firstname.lastname@example.org.
For more information about the SEC's action, you can read Litigation Release No. 22485 (Sept. 19, 2012).