09 Feb American Growth Funding II LLC and Ralph Johnson— Misrepresentations Regarding Company’s Management and Loan Book
American Growth Funding II LLC (AGF II) and Ralph Johnson Allegedly Lied to Investors Repeated Times Regarding Purchases of High-Yield Securities, No Audits of AGF II until 2014
American Growth Funding II LLC (AGF II) and its owner Ralph Johnson have been accused by the SEC of repeatedly lying to investors purchasing high-yield securities, according to a recent SEC Complaint currently under review by attorneys Joe Peiffer and Alan Rosca.
AGF II, which raises capital from investors to provide loans to businesses, allegedly made misrepresentations in offering documents about its management and concealed details about deteriorating loan values that could imperil full payment of the promised returns to investors, said SEC Complaint notes.
Ralph Johnson allegedly represented in offering documents that AGF II financial statements had been audited, but Johnson allegedly knew this statement was false, as no audit of AGF II’s financials occurred until 2014, the SEC Notes. The Peiffer Rosca Wolf securities lawyers are currently investigating American Growth Funding II LLC and Ralph Johnson and their alleged misrepresentations to investors.
Ralph Johnson Allegedly Caused AGF II to Send out Monthly Account Statements to Investors that Concealed the High-risk of its Business, Promised 12 % Annual Returns
Ralph Johnson allegedly caused AGF II to send out monthly account statements to investors that masked the instability of its business, according to a said SEC Complaint presently being reviewed by attorneys Joe Peiffer and Alan Rosca.
AGF II also allegedly failed to reveal that it could not have possibly paid investors their stated account balances because most of AGF II’s loans were likely uncollectible at the time, the SEC notes.
Finally, AGF II allegedly promised 12-percent annual returns, a purported gross overstatement, and “far less than presented because of many of the company’s loans are non-performing,” said SEC New York Regional Office Director Andrew M. Calamari.
Securities Lawyers Investigating
The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of misrepresentations, and are currently investigating American Growth Funding II LLC and Ralph Johnson’s alleged investment scheme. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of American Growth Funding II LLC and Ralph Johnson’s alleged scheme may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 888-998-0520.