Capital Cove Bancorp LLC; Christopher M. Lee aka Rashid K. Khalfani
Civil Action No. 8:15-cv-00980-JLS-JC (C.D. Ca.)
On June 18, 2015, the SEC obtained a temporary restraining order, asset freezes and other relief against Christopher M. Lee aka Rashid K. Khalfani and his Newport, California based company Capital Cove Bancorp LLC. The SEC alleged that the defendants perpetrated an offering fraud in which they raised nearly $2 million for purported investments in two private real estate funds.
According to the SEC's complaint, the defendants enticed investors by falsely boasting that a fund was "vetted, qualified, and registered" with the SEC and several other government agencies, and the money would be used to invest in real properties. In addition, based on the complaint, defendants misappropriated 94% of the investors' money, and in some instances used it to purchase their own real estate. See the SEC's complaint.
The Court also appointed Robert Mosier as Receiver. On September 1, 2015, the Court issued an order imposing a preliminary injunction against the defendants.
Persons to Contact:
Robert Mosier, 714-267-3588
Amy Longo, Trial Counsel, 323-965-3835
Junling Ma, Senior Counsel, 323-965-4539