Kinetic Investment Group and its managing member Michael Scott Williams is facing a lawsuit over the firm’s alleged fraudulent, unregistered securities offering.
The Securities and Exchange Commission (SEC) filed the lawsuit against Kinetic Investment Group and Williams. Several companies including Kinetic Funds LLC, KCL Services LLC, Scipio, LLC; LF42, LLC; El Morro Financial Group, LLC; and KIH, INC were also named as defendants in the lawsuit.
On Tuesday, Judge Willian Fung of the U.S. District Court for the Middle District of Florida granted the Commission’s request for emergency relief including an asset freeze against the defendants.
Allegations against the defendants
In the lawsuit, the SEC alleged that the Kinetic Investment Group, Williams, and the other defendants in the case violated certain provisions of the Securities Act, the Exchange Act, and the Advisers Act.
Their violations arise from allegedly conducting a securities offering without registering it with the Commission and raised around $39 million from at least 30 investors.
