National Investment Fraud Lawyers

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Attention Victims of Horizon Private Equity Ponzi Scheme

Posted on Monday, August 30th, 2021 at 1:56 pm    

Horizon Private Equity

Were you the victim of the ​​Horizon Private Equity Ponzi Scheme? Erez Law is currently investigating Georgia resident John Woods, who is accused of running a Ponzi scheme, “Horizon Private Equity.” Horizon Private Equity is alleged to have raised more than $110 million from over 400 investors in 20 states by offering and selling membership units in Horizon Private Equity.

In August 2021, the Securities and Exchange Commission (SEC) filed an emergency action to stop a Ponzi scheme allegedly perpetrated by Woods and the two entities he controls: registered investment adviser Livingston Group Asset Management Company, d/b/a Southport Capital (Southport), and investment fund Horizon Private Equity, III LLC (Horizon). The SEC’s complaint charges Woods and his companies with violating the anti-fraud provisions of the federal securities laws. According to the announcement, the complaint seeks preliminary and permanent injunctions, disgorgement, prejudgment interest, civil penalties, an asset freeze, and the appointment of a receiver.

Additionally, it is alleged that Woods and other investment adviser representatives at Southport Capital told clients that they would receive returns of 6-7% interest, guaranteed for two to three years, for investments in “Horizon Private Equity.” 

According to the SEC, “Woods, Southport, and other Southport investment adviser representatives allegedly told investors – including many elderly retirees – that their Horizon investments were safe, would be used for different investment activities, would pay a fixed rate of return, and that investors could get their principal back without penalty after a short waiting period. According to the complaint, however, these statements were false and misleading: Horizon did not earn any significant profits from legitimate investments, and a very large percentage of purported “returns” to earlier investors were simply paid out of new investor money. The complaint also alleges that Woods repeatedly lied to the SEC during regulatory examinations of Southport.”

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Southport Capital may be liable for investment or other losses suffered by Woods’ customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.