SEC v. Bernardo Mendia-Alcaraz; and Toltec Capital LLC, No. LR-26085, Northern District of California (Aug. 28, 2024) — Press Release
raw: Bernardo Mendia-Alcaraz and Toltec Capital LLC
Bernardo Mendia-Alcaraz and Toltec Capital LLC, No. 4:24-cv-05823 (Aug. 28, 2024)
The SEC charged Bernardo Mendia-Alcaraz and Toltec Capital LLC for a $3.3 million unregistered securities offering fraud involving Ponzi-like payments and personal luxury spending.
The SEC charged Bernardo Mendia-Alcaraz and Toltec Capital LLC with conducting fraudulent and unregistered securities offerings totaling approximately $3.3 million. The defendants allegedly used investor funds for Ponzi-like payments and Mendia-Alcaraz's personal luxury expenses. The SEC is seeking permanent injunctions, disgorgement with interest, civil penalties, and an officer-and-director bar.
The SEC has filed charges against Bernardo Mendia-Alcaraz and his private equity firm, Toltec Capital LLC, for conducting fraudulent and unregistered securities offerings. Between December 2019 and September 2023, the defendants allegedly raised approximately $3.3 million by promising low-risk investments and guaranteed returns. Instead of investing the capital as promised, Mendia-Alcaraz used the funds to make Ponzi-like payments to other investors and to fund his personal luxury expenses. The complaint alleges violations of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both defendants. Additionally, the agency is pursuing a conduct-based injunction and an officer-and-director bar against Mendia-Alcaraz.
Exhibits & Attached Documents (1)
Extracted insights
- $3.30M $3.3 million $1M–$10M
- person Bernardo Mendia-Alcaraz
- person Daniel Ball
- person david nasse
- person laura cunningham
- person melissa hodgman
- person Melissa Robertson
- agency Securities and Exchange Commission
- person Timothy Halloran
- organization Toltec Capital LLC
- person Zachary Scrima
- Securities And Exchange Commission charged Bernardo Mendia-Alcaraz and Toltec Capital LLC with offering fraud
- Bernardo Mendia-Alcaraz raised approximately $3.3 million from investors by promising to invest in low-risk private funds and guaranteeing returns
- Bernardo Mendia-Alcaraz used investor funds to make Ponzi-like payments to other investors and unauthorized payments to himself for personal expenses and luxury items
- Securities And Exchange Commission charges Mendia-Alcaraz and Toltec Capital with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8
- Securities And Exchange Commission seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both defendants, and a conduct-based injunction and officer-and-director bar against Mendia-Alcaraz
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26085 / August 28, 2024 Securities and Exchange Commission v. Bernardo Mendia-Alcaraz and Toltec Capital LLC, No. 4:24-cv-05823 (N.D. Cal. filed Aug. 23, 2024) SEC Charges Private Equity Firm and Managing Partner with Offering Fraud The Securities and Exchange Commission today announced charges against Bernardo Mendia-Alcaraz and his private equity firm, Toltec Capital LLC, for conducting fraudulent and unregistered securities offerings. According to the SEC's complaint, from at least December 2019 to September 2023, Mendia-Alcaraz, on behalf of Toltec Capital, raised approximately $3.3 million from investors by promising to invest their money in low-risk private funds that Toltec Capital managed, and guaranteeing a return of investor capital, among other assurances. Instead, the SEC alleges, Mendia-Alcaraz used investor funds to make Ponzi-like payments to other investors and unauthorized payments to himself for personal expenses and luxury items. The SEC's complaint, filed in the United States District Court for the Northern District of California, charges Mendia-Alcaraz and Toltec Capital with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both defendants, and a conduct-based injunction and officer-and-director bar against Mendia-Alcaraz. The SEC's investigation was conducted by Daniel Ball, Laura Cunningham, and Zachary Scrima, under the supervision of Melissa Robertson and Melissa Hodgman. The litigation will be led by Timothy Halloran and supervised by David Nasse.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26085 / August 28, 2024 Securities and Exchange Commission v. Bernardo Mendia-Alcaraz and Toltec Capital LLC, No. 4:24-cv-05823 (N.D. Cal. filed Aug. 23, 2024) SEC Charges Private Equity Firm and Managing Partner with Offering Fraud The Securities and Exchange Commission today announced charges against Bernardo Mendia-Alcaraz and his private equity firm, Toltec Capital LLC, for conducting fraudulent and unregistered securities offerings. According to the SEC's complaint, from at least December 2019 to September 2023, Mendia-Alcaraz, on behalf of Toltec Capital, raised approximately $3.3 million from investors by promising to invest their money in low-risk private funds that Toltec Capital managed, and guaranteeing a return of investor capital, among other assurances. Instead, the SEC alleges, Mendia-Alcaraz used investor funds to make Ponzi-like payments to other investors and unauthorized payments to himself for personal expenses and luxury items. The SEC's complaint, filed in the United States District Court for the Northern District of California, charges Mendia-Alcaraz and Toltec Capital with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both defendants, and a conduct-based injunction and officer-and-director bar against Mendia-Alcaraz. The SEC's investigation was conducted by Daniel Ball, Laura Cunningham, and Zachary Scrima, under the supervision of Melissa Robertson and Melissa Hodgman. The litigation will be led by Timothy Halloran and supervised by David Nasse.