SEC Takes Action Against James A. Evans, Jr. Over Investment Scheme

Strategic Insights -

The Securities and Exchange Commission has issued a public administrative proceeding against James A. Evans, Jr., citing allegations of operating an investment scheme through his business, DollarMonster. Evans allegedly promoted his website as a "private fund" with an opaque investment strategy, promising investors "big profits." However, the SEC claims that Evans used investor funds for personal compensation, falsified investment returns, and misrepresented the fund's activities to investors.

Key Takeaways:

  • The SEC alleges that James A. Evans, Jr. operated a website at cashflowbot.com, using the business name "DollarMonster," to promote an investment scheme to investors.
  • Evans claimed that DollarMonster was a "private fund" with over $38 million in assets under management and more than 120 management teams.
  • The SEC claims that Evans falsified investment returns, misrepresented the fund's activities to investors, and used investor funds for personal compensation.
  • Evans received compensation by withdrawing over $30,000 of investor funds for his personal use.
  • A final judgment was entered against Evans in 2015, permanently enjoining him from future violations of the Securities Act, the Exchange Act, and the Advisers Act.
  • The SEC is launching public administrative proceedings to determine whether the allegations are true and to decide on appropriate remedial action.

Statistics:

  • The SEC alleges that Evans operated the investment scheme from at least January 2012 to April 2014.
  • Evans claimed that DollarMonster had over $38 million in assets under management.
  • Evans received compensation by withdrawing over $30,000 of investor funds for his personal use.
  • The final judgment against Evans was entered on September 30, 2015.

Sources:

  • Securities and Exchange Commission. (Oct. 13) In the Matter of JAMES A. EVANS, JR. Respondent. ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940 AND NOTICE OF HEARING.