Did you lose money investing with former Axiom Capital Management, Inc. broker Jennifer Ling (CRD# 3277203) in Aequitas-related promissory notes? Jennifer Ling was registered with Axiom Capital Management, Inc. in New York, New York from May 2015 to July 2017.
SEC Files Complaint Against Aequitas Management, LLC
In March 2016, the Securities and Exchange Commission (SEC) filed a complaint against Aequitas Management, LLC alleging that the first and its subsidiaries operated a Ponzi-like scheme that defrauded 1,500 customers of approximately $350 million. Company executives – CEO Robert Jesenik, executive vice president Brian Oliver, and chief operating officer N. Scott Gillis – were aware that the company’s cash flow would make it difficult to meet existing obligations, but they continued to raise hundreds of millions of dollars from new investors to pay earlier investors.
According to the SEC complaint, Aequitas and its affiliates defrauded investors into believing they were making health care, education, and transportation-related investments, when their money was really being used in a last-ditch effort to save the firm. The SEC alleges that between January 2014 and January 2016, the firm raised money from investors by issuing promissory notes with high rates of return typically ranging from 8.5 to 10 percent. Aequitas used some investor money to acquire trade receivables in health care, education, transportation, and other consumer credit sectors. The SEC alleges that the vast majority was concentrated in student loan receivables of for-profit education provider Corinthian Colleges. However, Corinthian Colleges defaulted on its obligations to Aequitas in mid-2014, significantly exacerbating the firm’s already severe cash flow problems.
The Aequitas Funds include:
- Aequitas WRFF I
- Aequitas Private Client Fund
- Aequitas Income Protection Fund
- Aequitas ETC Founders Fund
- Aequitas Income Opportunity Fund II
- Aequitas Enhanced Income Fund
- Aequitas Commodities Fund
- Aequitas Capital Opportunities Fund
- Aequitas Secured Subordinated Promissory Notes
Jennifer Ling Customer Complaints
Jennifer Ling has been the subject of seven customer complaints between 2016 and 2021, according to her CRD report:
- March 2021. “Suitability.” The customer is seeking $150,000 in damages. The complaint was regarding private placements and alternative investments and took place while Jennifer Ling was registered with Axiom Capital Management, Inc.
- March 2021. “Suitability.” The customer is seeking $100,000 in damages. The complaint was regarding private placements and alternative investments and took place while Jennifer Ling was registered with Axiom Capital Management, Inc.
- February 2020. “Customer alleged breach of fiduciary duty and violations of FINRA Rules and California law relating to purchases of private placements in 2014 and 2015.” The case was settled for $100,000. The complaint was regarding private placements and took place while Jennifer Ling was registered with GPS Capital Management, LLC.
- February 2019. “Customers allege failure to adequately disclose risks relating to a promissory note investment issued by Aequitas Commercial Finance LLC in December 2013.” The customer sought $1,000,000 in damages and the case was settled for $46,500. The complaint was regarding promissory notes and took place while Jennifer Ling was registered with GPS Capital Management, LLC.
- September 2018. “Customer alleges breach of fiduciary duty, constructive fraud, and violation of the California corporations code relating to a promissory note investment issued by Aequitas Commercial Finance LLC in October 2014.” The customer sought $100,000 in damages and the case was settled for $10,000. The complaint was regarding promissory notes and took place while Jennifer Ling was registered with GPS Capital Management, LLC.
- November 2017. “Customer alleges negligence, gross negligence, misrepresentation, omission of material fact, breach of fiduciary duty and breach of contract relating to a promissory note investment issued by Aequitas Commercial Finance LLC in October 2013.” The customer sought $200,000 in damages and the case was settled for $100,000. The complaint was regarding promissory notes and took place while Jennifer Ling was registered with GPS Capital Management, LLC.
- June 2016. “Customers allege professional negligence, and fraud and negligent misrepresentation relating to promissory note investments issued by Aequitas Commercial Finance, LLC made in July 2013 and December 2013.” The customer sought $537,000 in damages and the case was settled for $134,250. The complaint was regarding promissory notes and took place while Jennifer Ling was registered with GPS Capital Management, LLC.
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, Axiom Capital Management, Inc. may be liable for investment or other losses suffered by Jennifer Ling’s 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.
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