SEC Halts Fraudulent Offering of Private Fund Investments
Feb. 17, 2017
The SEC has charged Patrick O. Howard and two Dallas-based companies he controls - Optimal Economics Capital Partners, LLC and Howard Capital Holdings, LLC – in connection with raising approximately $13 million from 119 investors through the fraudulent offer and sale of interests in three private funds. According to the complaint, Howard and his companies made several misrepresentations to investors, among them misrepresentations about annual returns and risk exposure; Howard and his companies then used much of the investor funds for Howard’s personal expenses and on unrelated business expenses.
The SEC’s investigation was conducted by Catherine E. Floyd and Carol Stumbaugh and was supervised by Barbara L. Gunn and David L. Peavler of the Fort Worth Office. Timothy McCole, David Fraser, and Scott Mascianica will conduct the SEC’s litigation. More information is available here.