SEC v. Optimum Income Property, LLC; Optimum Property Investments, LLC; and Frank E. Lleras, No. LR-23464, Western District of North Carolina (Feb. 11, 2016) — Press Release
raw: Optimum Income Property, LLC, Optimum Property Investments, LLC, and Frank E. Lleras
Optimum Income Property, LLC, Optimum Property Investments, LLC, and Frank E. Lleras, No. 3:16-cv-00073-GCM (Feb. 11, 2016)
The U
The U.S. Securities and Exchange Commission charged Frank E. Lleras and his two Charlotte-based companies, Optimum Income Property, LLC and Optimum Property Investments, LLC, with a fraudulent investment scheme that raised over $2.9 million from at least 25 investors, primarily from the Dominican Republic. Lleras falsely claimed investor funds would be used to purchase, renovate, and rent or resell Charlotte-area properties for profit, while instead misappropriating most of the money for personal use and fabricating documents like forged deeds and tax receipts to conceal the fraud. He was charged with violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act, along with Rule 10b-5. In a parallel criminal action, Lleras pled guilty to securities and wire fraud. The SEC’s investigation remains ongoing.
The U.S. Securities and Exchange Commission charged Frank E. Lleras and his two Charlotte-based companies, Optimum Income Property, LLC and Optimum Property Investments, LLC, with a fraudulent investment scheme that raised over $2.9 million from at least 25 investors, primarily from the Dominican Republic. Lleras falsely claimed investor funds would be used to purchase, renovate, and rent or resell Charlotte-area properties for profit, while instead misappropriating most of the money for personal use and fabricating documents like forged deeds and tax receipts to conceal the fraud. He was charged with violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act, along with Rule 10b-5. In a parallel criminal action, Lleras pled guilty to securities and wire fraud. The SEC’s investigation remains ongoing. The U.S. Securities and Exchange Commission charged Frank E. Lleras and his two Charlotte-based companies, Optimum Income Property, LLC and Optimum Property Investments, LLC, with a fraudulent investment scheme that raised over $2.9 million from at least 25 investors, primarily from the Dominican Republic. Lleras falsely claimed investor funds would be used to purchase, renovate, and rent or resell Charlotte-area properties for profit, while instead misappropriating most of the money for personal use and fabricating documents like forged deeds and tax receipts to conceal the fraud. In a parallel criminal action, Lleras pled guilty to securities and wire fraud. The SEC’s civil complaint alleges violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act with Rule 10b-5, and the investigation remains ongoing.
Exhibits & Attached Documents (1)
Extracted insights
- $2.90M $2.9 million $1M–$10M
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- Securities and Exchange Commission charged Optimum Income Property, LLC, Optimum Property Investments, LLC, and Frank E. Lleras with fraudulent investment scheme involving the purchase of rental properties
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23464 / February 11, 2016 Securities and Exchange Commission v. Optimum Income Property, LLC, Optimum Property Investments, LLC, and Frank E. Lleras, Civil Action No. 3:16-cv-00073-GCM (W.D.N.C. filed Feb. 10, 2016) SEC Charges Charlotte, North Carolina, Resident with Fraudulent Investment Scheme Involving the Purchase of Rental Properties On February 10, 2016, the Securities and Exchange Commission charged Frank E. Lleras and two Charlotte, North Carolina-based companies that he controls, Optimum Income Property, LLC and Optimum Property Investments, LLC, with conducting an offering fraud lasting more than two years that raised more than $2.9 million from at least twenty-five investors from the Dominican Republic. In a parallel action, the U.S. Attorney's Office for the Western District of North Carolina announced that Lleras has pled guilty to securities and wire fraud. The SEC's complaint, filed in federal court in North Carolina, alleges that: Lleras solicited money from investors by misrepresenting that he would use the funds he obtained to purchase residential homes and condominiums located in Charlotte. Lleras misrepresented to investors that he would renovate and resell, or rent, the properties he purchased for substantial profit and take as his fee a percentage of the investors' net profit. Lleras's claims to investors were false because he only used a small portion of investor funds to purchase properties and misappropriated large portions of those funds for his own benefit. Lleras concealed his scheme by giving investors fake documents, including forged deeds and fictitious property tax receipts, concerning properties that he falsely told them they owned when, in fact, the properties were not owned by the investors. The SEC's complaint charges Lleras and his two companies with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC would like to thank the U.S. Attorney's Office for the Western District of North Carolina for its substantial assistance in this matter. The SEC's investigation is continuing. SEC Complaint
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23464 / February 11, 2016 Securities and Exchange Commission v. Optimum Income Property, LLC, Optimum Property Investments, LLC, and Frank E. Lleras, Civil Action No. 3:16-cv-00073-GCM (W.D.N.C. filed Feb. 10, 2016) SEC Charges Charlotte, North Carolina, Resident with Fraudulent Investment Scheme Involving the Purchase of Rental Properties On February 10, 2016, the Securities and Exchange Commission charged Frank E. Lleras and two Charlotte, North Carolina-based companies that he controls, Optimum Income Property, LLC and Optimum Property Investments, LLC, with conducting an offering fraud lasting more than two years that raised more than $2.9 million from at least twenty-five investors from the Dominican Republic. In a parallel action, the U.S. Attorney's Office for the Western District of North Carolina announced that Lleras has pled guilty to securities and wire fraud. The SEC's complaint, filed in federal court in North Carolina, alleges that: Lleras solicited money from investors by misrepresenting that he would use the funds he obtained to purchase residential homes and condominiums located in Charlotte. Lleras misrepresented to investors that he would renovate and resell, or rent, the properties he purchased for substantial profit and take as his fee a percentage of the investors' net profit. Lleras's claims to investors were false because he only used a small portion of investor funds to purchase properties and misappropriated large portions of those funds for his own benefit. Lleras concealed his scheme by giving investors fake documents, including forged deeds and fictitious property tax receipts, concerning properties that he falsely told them they owned when, in fact, the properties were not owned by the investors. The SEC's complaint charges Lleras and his two companies with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC would like to thank the U.S. Attorney's Office for the Western District of North Carolina for its substantial assistance in this matter. The SEC's investigation is continuing. SEC Complaint