Securities Law Blog

A federal judge in the Southern District of Florida ruled in favor of the Securities and Exchange Commission (SEC) in their case against U.S. Pension Trust Corp. and U.S. College Trust Corp., and three owners for defrauding roughly 14,000 investors in a 13-year scheme.

The SEC alleged that the two Miami-based companies and their three owners, Iliana Maceiras, Leonardo Maceiras Jr., and Nildo Verdja, fraudulently siphoned investor money through excessive, undisclosed commissions and fees in the sale of mutual funds. The court found that from 1995 until 2007, U.S. Pension Trust and U.S. College Trust solicited investments from mostly foreign investors in multi-year investment plans consisting of U.S. mutual funds and insurance products.

The court found that there were numerous misrepresentations made to investors. Both in written and verbal communications with investors, the sales agents and companies omitted disclosing the exorbitant fees. According to court findings, the companies and individuals misrepresented that their products were registered and regulated by the SEC, the Federal Reserve Bank, and the Office of the Comptroller of the Currency. The defendants also acted as registered broker-dealers in selling their products.

“Under the federal securities laws, investors are entitled to full disclosure so they know how much of their investment is going toward commission and fees,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office.

The two companies were ordered to disgorge $62.6 million and pay a $50 million penalty. Each individual has been ordered to disgorge their salaries during that time as well as a $200,000 penalty. In addition to the disgorgement and penalties, the court entered permanent injunctions against both companies and all three individuals against future violations of the securities laws.