On September 21, 2020, the U.S. District Court for the Northern District of Illinois entered a default final judgment against Marcus Beam for defrauding advisory clients and stealing investment funds.

According to the SEC's complaint, filed on September 30, 2019, Beam solicited and obtained money from individuals in connection with a purported investment advisory business, promising to invest the money in pre-IPO shares and other securities. According to the complaint, Beam misappropriated the vast majority of investor funds for personal and business expenses and provided investors fabricated account statements. The complaint further alleges that, when victims sought to redeem their investments, Beam failed to return the funds.

The final judgment permanently enjoins Beam from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, and Sections 206(1), 206(2), and 206(4) and Rule 206(4)-8 of the Investment Advisers Act of 1940. In addition, the Court ordered Beam to pay disgorgement and prejudgment interest of $219,921 and a civil penalty of $207,000.

The SEC's litigation was led by Patrick R. Costello and supervised by Jan M. Folena. David Neuman, supervised by David A. Becker, of the SEC's Asset Management Unit assisted in the litigation. The SEC appreciates the assistance of the Securities Department-Enforcement Division of the Illinois Secretary of State's Office, the Federal Bureau of Investigation, the U. S. Postal Inspector Service, and the U.S. Attorney's Office for the Northern District of Illinois.

The SEC's Retail Strategy Task Force and Office of Investor Education and Advocacy (OIEA) encourage investors to check the background of anyone selling or offering them an investment using the free and simple search tool on Investor.gov.