SEC v. Dow Rockwell LLC; and Richard Dow Rockwell, No. LR-26185, Northern District of California (Dec. 3, 2024) — Press Release
raw: Dow Rockwell LLC and Richard Dow Rockwell
Dow Rockwell LLC and Richard Dow Rockwell, No. 3:22-cv-02069 (Dec. 3, 2024)
summary
Richard Dow Rockwell and his firm, Dow Rockwell LLC, obtained final judgments for failing to disclose conflicts of interest related to a $35 million real estate Ponzi scheme.
paragraph
The SEC secured final consent judgments against Dow Rockwell LLC and its owner for undisclosed compensation and material omissions regarding Professional Financial Investors, Inc. (PFI). The defendants were charged with operating as unregistered broker-dealers and failing to disclose the criminal history of PFI’s founder. They were ordered to pay joint and several liabilities totaling $603,918.85, consisting of $402,075 in disgorgement, $121,843.85 in interest, and an $80,000 civil penalty.
narrative
The SEC obtained final judgments against Dow Rockwell LLC and its owner, Richard Dow Rockwell, for undisclosed conflicts of interest involving a real estate Ponzi scheme. The defendants failed to disclose compensation received for recommending securities in Professional Financial Investors, Inc. (PFI), a company that misappropriated over $35 million. Additionally, they failed to reveal the founder's criminal conviction and operated without proper broker-dealer registration. To resolve the matter, the defendants consented to permanent injunctions against violating the Investment Advisers Act, the Securities Act, and the Securities Exchange Act. They were also ordered to pay $402,075 in disgorgement, $121,843.85 in prejudgment interest, and an $80,000 civil penalty on a joint-and-several basis. This litigation was conducted by the SEC’s San Francisco Regional Office.
Classified ponzi(confidence 97%). EDGAR detection: forms Form D· recall 35% / precision 15%. detection rule →
Statutes
Sections 206(1), 206(2), and 207 of the Investment Advisers ActSections 206(1), 206(2), and 207 of the Investment Advisers ActSections 206(1), 206(2), and 207 of the Investment Advisers ActSections 5(a) and 5(c) of the Securities ActSections 5(a) and 5(c) of the Securities ActSection 15(a)(1) of the Securities Exchange ActSection 15(a)(1) of the Securities Exchange Act
Parties
Securities and Exchange CommissionDow Rockwell LLCRichard Dow Rockwell
Keywords
rockwelldowllcsecuritiessecurities exchangefinal judgmentssecjudgmentspfirichardfinalinvestmentexchange commissionjudgments againstinvestment adviser
Exhibits & Attached Documents (2)
Extracted insights
Dollar amounts 4
- $35.00M $35 million $10M–$100M
- $402K $402,075 $100K–$1M
- $122K $121,843 $100K–$1M
- $80K $80,000 $10K–$100K
Entities 4
- scheme_term a ponzi scheme
- agency broker-dealers with the sec or associated with a registered broker-dealer
- person final judgments
- agency Securities and Exchange Commission
Triples 9
- Securities And Exchange Commission obtains final judgments Dow Rockwell LLC and Richard Dow Rockwell
- Dow Rockwell LLC and Richard Dow Rockwell failed to disclose compensation received in connection with soliciting and recommending investments in Professional Financial Investors, Inc. (PFI)
- Professional Financial Investors, Inc. (PFI) operated as a Ponzi scheme
- Professional Financial Investors, Inc. (PFI) misappropriated more than $35 million in investor funds
- Dow Rockwell LLC and Richard Dow Rockwell did not disclose the past criminal conviction of PFI's founder to their clients
- Dow Rockwell LLC and Richard Dow Rockwell were not registered as broker-dealers with the SEC or associated with a registered broker-dealer
- Dow Rockwell LLC and Richard Dow Rockwell consented to final judgments enjoining violations of Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940; Sections 5(a) and 5(c) of the Securities Act of 1933; and Section 15(a)(1) of the Securities Exchange Act of 1934
- Final judgments order Dow Rockwell LLC and Richard Dow Rockwell to pay disgorgement of $402,075 plus prejudgment interest of $121,843.85 and a civil penalty of $80,000
- Securities And Exchange Commission conducted litigation by Brent Smyth of the San Francisco Regional Office
PDF (from attached: judgment)
Text layers
Extracted body text (2,298c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26185 / December 3, 2024 Securities and Exchange Commission v. Dow Rockwell LLC and Richard Dow Rockwell, 3:22-cv-02069 (N.D. Cal. filed Mar. 31, 2022) SEC Obtains Final Judgments Against California Investment Adviser and its Owner for Undisclosed Conflicts of Interest Related to Real Estate Ponzi Scheme On November 25, 2024, the U.S. District Court for the Northern District of California entered final consent judgments against Dow Rockwell LLC, a formerly California-registered investment adviser, and its sole proprietor, Richard Dow Rockwell. The entry of the consent judgments resolves all claims arising out of the SEC’s March 31, 2022 complaint, which alleged that Rockwell and Dow Rockwell LLC failed to disclose compensation they received in connection with soliciting and recommending investments in the securities of Professional Financial Investors, Inc. (“PFI”), a Marin County, California real estate investment and management company that defrauded investors. As alleged, PFI operated as a Ponzi scheme, where a substantial portion of investor funds was used to pay back previous investors, and more than $35 million in investor funds was misappropriated by PFI’s executives. The complaint also alleged that Rockwell and Dow Rockwell LLC did not disclose the past criminal conviction of PFI’s founder to their clients and that, during the time Rockwell and Dow Rockwell LLC offered and sold PFI securities, neither was registered as a broker-dealer with the SEC or associated with a registered broker-dealer. Without admitting or denying the allegations in the SEC’s complaint, Rockwell and Dow Rockwell LLC consented to the entry of final judgments that permanently enjoin them from future violations of Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940; Sections 5(a) and 5(c) of the Securities Act of 1933; and Section 15(a)(1) of the Securities Exchange Act of 1934. The final judgments further order Rockwell and Dow Rockwell LLC to pay, on a joint-and-several basis, disgorgement in the amount of $402,075 plus prejudgment interest thereon in the amount of $121,843.85, and a civil penalty of $80,000. The SEC’s litigation was conducted by Brent Smyth of the San Francisco Regional Office.
OCR text (2,298c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26185 / December 3, 2024 Securities and Exchange Commission v. Dow Rockwell LLC and Richard Dow Rockwell, 3:22-cv-02069 (N.D. Cal. filed Mar. 31, 2022) SEC Obtains Final Judgments Against California Investment Adviser and its Owner for Undisclosed Conflicts of Interest Related to Real Estate Ponzi Scheme On November 25, 2024, the U.S. District Court for the Northern District of California entered final consent judgments against Dow Rockwell LLC, a formerly California-registered investment adviser, and its sole proprietor, Richard Dow Rockwell. The entry of the consent judgments resolves all claims arising out of the SEC’s March 31, 2022 complaint, which alleged that Rockwell and Dow Rockwell LLC failed to disclose compensation they received in connection with soliciting and recommending investments in the securities of Professional Financial Investors, Inc. (“PFI”), a Marin County, California real estate investment and management company that defrauded investors. As alleged, PFI operated as a Ponzi scheme, where a substantial portion of investor funds was used to pay back previous investors, and more than $35 million in investor funds was misappropriated by PFI’s executives. The complaint also alleged that Rockwell and Dow Rockwell LLC did not disclose the past criminal conviction of PFI’s founder to their clients and that, during the time Rockwell and Dow Rockwell LLC offered and sold PFI securities, neither was registered as a broker-dealer with the SEC or associated with a registered broker-dealer. Without admitting or denying the allegations in the SEC’s complaint, Rockwell and Dow Rockwell LLC consented to the entry of final judgments that permanently enjoin them from future violations of Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940; Sections 5(a) and 5(c) of the Securities Act of 1933; and Section 15(a)(1) of the Securities Exchange Act of 1934. The final judgments further order Rockwell and Dow Rockwell LLC to pay, on a joint-and-several basis, disgorgement in the amount of $402,075 plus prejudgment interest thereon in the amount of $121,843.85, and a civil penalty of $80,000. The SEC’s litigation was conducted by Brent Smyth of the San Francisco Regional Office.