SEC v. Daniel Rivera, et al.
Case No. 16-cv-01636-MLC-DEA (D.N.J.)
On March 24, 2016, the Commission filed a complaint (the “Complaint”) against Daniel Rivera (“Rivera”), Matthew Rivera (“M. Rivera”), and Robbins Lane Properties Inc. (“Robbins Lane”), (collectively, the “Defendants”) and named Daniel Rivera Inc. (“Rivera Inc.”) and Rivera & Associates (a/k/a Strategic Wealth Partners of New Jersey) (“Rivera & Associates”) as relief defendants (collectively, the “Relief Defendants”). The complaint alleged that, from 2008 through at least 2014, the Defendants violated federal securities laws by engaging in a $2.7 million Ponzi scheme that targeted approximately 30, largely elderly and unsophisticated, investors. Rivera told investors that they would share in the profits of Robbins Lane, a Pennsylvania real estate venture that purportedly bought, redeveloped and sold properties. In fact Robbins Lane had no real estate portfolio, no operations, no employees, and no ability to provide income to investors (much less “guaranteed” income”). Instead of investing in real estate, hundreds of thousands of dollars of investor funds were used to pay other investors and for personal expenses. See Complaint.
On March 28, 2016, the Court entered a final judgment (the “Final Judgment”) ordering the Defendants and Relief Defendants to pay a total of $2,212,716.00 in disgorgement, prejudgment interest, and penalties to the Commission. The Commission was ordered to hold all funds, together with interest and income earned thereon (collectively, the “Fund”), pending further order of the Court. See the Final Judgment.
The Fund consists of $226,945.15; any future funds paid pursuant to the Final Judgment will be added to the Fund.
On February 20, 2018, the Court entered an order that appointed Miller Kaplan Arase LLP as the Tax Administrator to fulfill the tax obligations of the Fund.
On June 20, 2018, the Commission filed a motion to establish a fair fund, appoint a plan administrator, and approve a distribution plan, which details the distribution plan (the “Plan”). See the Commission’s Motion with the Plan.
On July 18, 2018, the Court issued an order that established a fair fund, appointed a plan administrator, and approved the Plan. See the Court’s Order.
The Plan provides that the distribution of the Fair Fund shall be made to individuals who invested money in Robbins Lane and who suffered a net loss, pursuant to the methodology in the Plan.
For more information, please contact the Plan Administrator:
Michael S. Lim
SEC, Office of Distributions
Telephone Number: 202-551-4659