A settled final judgment was reached in the case of a financial advisor’s widow who received funds from a fraudulent investment scheme allegedly carried out by her late husband, Think Advisor reports.
The Securities and Exchange Commission announced that the defendant, Wendy Swensen, had agreed to disgorge over $3.8 million in funds she received as the result of the scam that was run by Utah advisor Stephen Romney Swensen.
The SEC’s original complaint, filed in federal court in October 2022, alleged that Stephen Swensen, a registered investment adviser representative, fraudulently induced victims into investing in Crew Capital Group, LLC, which he owned and controlled. Swensen falsely told investors that Crew Capital was a fund co-managed by a reputable firm and guaranteed investors a minimum 5% annual return and up to 10% if the S&P 500 performed well, the SEC said.
But the commission learned that Crew Capital did not invest in any securities and that Mr. Swensen misappropriated essentially all investor funds to make Ponzi payments to other investors and also to pay for his family’s personal expenses, such as real estate, vehicles and multiple private aircraft, and living expenses.
From 2011 until 2022, the scheme was reported to have raised over $29 million from more than 50 investors.
The SEC did not allege wrongdoing by Ms. Swensen. She consented to the entry of a final judgment ordering her to pay a total of $3,839,009, consisting of $3,626,138 in disgorged investor funds, $41,279 in prejudgment interest, and $171,592 in interest Ms. Swensen earned on investor funds during the case. The entire amount will be distributed to harmed investors by the court-appointed receiver.
At Hyman Cotter PC, we represent clients nationwide who are the victims of unauthorized trading, breaches of fiduciary duty and other forms of financial adviser misconduct and securities fraud. Our team of lawyers brings a diverse range of knowledge and experiences to our clients’ cases. If your financial adviser made trades without your consent, you may be able to pursue a lawsuit to recoup your losses. We’ll help you understand your rights and options. Contact us at 312-291-4600 or email our team to learn more.
