Instead of putting the investors’ money in the Fund for investments, Coggins allegedly misappropriated more than $450,000 and used it for personal benefits including payments for a BMW car, divorce attorney, expensive meals at restaurants, and shopping.
The SEC alleged that the defendants’ false and misleading statements to their investors and prospective investors began in early 2016 and continued until August 20, the date when the complaint was filed against them (Relevant Period).
Additionally, the SEC accused Coggins of destroying evidence related to his fraudulent conduct, just hours after receiving the Commission’s request to preserve documents.
Coggins “took elaborate steps” to hide his fraud
According to the SEC, Cora Gables and Coggins violated the antifraud provisions of the federal securities laws. The Commission also asserted that Coggins the Investment Advisers Act by aiding and abetting Coral Gables’ violations.
The SEC is seeking injunctions, disgorgement of allegedly ill-gotten gains with prejudgment interest, and financial penalties against the defendants.
