The Securities and Exchange Commission announced it filed an action against Empirex Capital LLC, a Coral Gables, Florida company, its sole owner and manager Rafael Alberto Vargas Gonzalez ("Rafael Vargas"), his sister Paola A. Vargas and an entity she managed, AKC Management LLC, seeking an order directing them to comply with investigative subpoenas for documents or testimony.

According to the SEC's application, filed in U.S. District Court for the Southern District of Florida, the SEC is investigating whether Empirex, its officers and others violated the federal securities laws in connection with an unregistered securities offering.  The filing states evidence uncovered in the investigation indicates Empirex and Rafael Vargas may have used AKC - a limited liability company created by Paola Vargas - to raise funds from investors to funnel to Empirex.  As stated in the filing, SEC staff served Empirex, Rafael Vargas, and AKC with investigative subpoenas requiring the production of certain documents and served Paola Vargas with an investigative subpoena compelling her testimony.  According to the filing, despite multiple accommodations by the SEC, Empirex, Rafael Vargas and AKC have failed to comply with the document production obligations of the subpoenas and Paola Vargas has failed and refused to comply with the testimonial obligation of the subpoena.

The SEC's application seeks an order from the court directing Empirex, Rafael Vargas, AKC, and Paola Vargas, to show cause why the court should not compel them to produce documents or appear for testimony as required by the subpoenas. The application further seeks an order from the court, following its ruling on the order to show cause, directing Empirex, Rafael Vargas, AKC, and Paola Vargas to comply fully with the subpoenas. The SEC is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws.