The Securities and Exchange Commission announced charges against an Arizona resident for fraudulently raising $700,000 from elderly investors between April 2017 and May 2018.

According to the SEC's complaint, Conrad Coggeshall of Scottsdale, Arizona told investors that they were investing in Business Owners Tax Relief, LLC, a successful mergers and acquisitions firm based in New York that would pay investors periodic interest at fixed rates. Instead, the complaint alleges that no such firm existed and Coggeshall deposited investors' funds into brokerage and bank accounts for an Arizona company he owns with the same name. Coggeshall allegedly used those funds to trade securities, incurring significant losses, and to pay personal expenses, including the rent for his apartment. The complaint further alleges that Coggeshall also used funds from these accounts to make payments to investors, which he falsely represented were interest payments from the New York mergers and acquisitions firm.

The SEC's complaint, filed in the U.S. District Court for the District of Arizona, charges Coggeshall with violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking a permanent injunction, disgorgement, prejudgment interest, and civil money penalties against Coggeshall and disgorgement and prejudgment interest from Business Owners Tax Relief, which the SEC named as a relief defendant.

The SEC's investigation has been conducted by Jen Peltz and Rebecca Hollenbeck and supervised by Paul A. Montoya of the Chicago Regional Office. The litigation will be led by Robert M. Moye and Ms. Peltz. The SEC appreciates the assistance of the Arizona Corporation Commission, Securities Division.