SEC Sues 4 in Phony Investment Scheme

Jack Humphrey, Regulatory journalist
September 25, 2012 /

The Securities and Exchange Commission filed a complaint in Indiana charging Rudolf D. Pameijer, Lindsay R. Sayer, Ryan W. Koester and his entity Rykoworks Capital Group, LLC with running a fraudulent investment scheme.

The complaint alleges that the defendants in this scheme misappropriated nearly $1.7 million from investors.

As alleged in the complaint, Koester held himself out as an expert foreign currency trader, and falsely represented to investors that his unique trading strategy offered investors a principal guaranteed investment opportunity. As alleged in the complaint, Koester and Pameijer, a career insurance salesman, agreed to a profit sharing arrangement for clients Pameijer brought to Rykoworks.

The complaint alleges that, starting in 2010, Pameijer and his daughter, Sayer, began soliciting clients to invest with Rykoworks through promissory notes which purported to guarantee investor principal while offering risk free returns from forex trading.

As alleged in the complaint, Pameijer and Sayer misappropriated the majority of funds they raised from investors for personal use. The complaint alleges that Pameijer used investor money to pay for luxury automobiles, a motorcycle, a boat, home renovations, his son’s college tuition, and Sayer’s wedding and honeymoon in St. Lucia.

The complaint further alleges that Sayer used investor money to pay rent and wedding expenses, and for other personal expenditures. According to the complaint, the remaining investor funds Pameijer and Sayer transferred to Koester and Rykoworks, and additional funds Koester raised from investors directly, Koester depleted through trading losses and misappropriation of funds for personal expenses.

The SEC alleges that, as part of the scheme, each of the proposed defendants made materially false representations to investors, including providing investors with false account statements and information.

Koester and Pameijer also are subject to pending Indiana state criminal charges.


Share your opinion

SEO Powered By SEOPressor