February 17, 2017 Comments (0) Current Investigations, Securities Fraud

OE Capital Ventures LLC Investigation

Benefit Street Partners Realty Trust
(Last Updated On: February 17, 2017)

Concerned about investment losses in OE Capital Ventures LLC?

Have you suffered losses investing in OE Capital Ventures LLC? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

The SEC announced this week fraud charges and an emergency court order to stop a fraudulent offering of investments in private funds. Upon information and belief, one of the funds is OE Capital Ventures LLC.

SEC Allegations

The SEC’s complaint, filed under seal in federal court in Dallas, Texas on February 14, 2017, alleges that since February 2015, Patrick O. Howard and two Dallas-based companies he controls – Optimal Economics Capital Partners, LLC and Howard Capital Holdings, LLC – have raised approximately $13 million from 119 investors through the allegedly fraudulent offer and sale of interests in three private funds. According to the SEC’s complaint, Howard and his companies purportedly told investors that they would earn between 12% and 20% annual returns through investing in these funds with minimal risk exposure. They also allegedly represented that nearly all investor funds would be used to acquire the interests in the portfolio companies’ revenue streams, and that the promised returns were backed by insurance.

The SEC alleges that these representations were false. According to the SEC, Howard and his companies only used $7.5 million of the $13 million in investor funds to acquire revenue streams from portfolio companies and spent most of the rest on Howard’s personal expenses and on unrelated business expenses.

In addition, the SEC’s complaint alleges that, to cover up the fact that revenue from the portfolio companies was insufficient to support the guaranteed minimum returns promised to investors, Howard purportedly sent to investors account statements that depicted false account balances and encouraged investors to “reinvest” their purported earnings back in the funds.

Additionally, Optimal Economics allegedly used new investor funds to make Ponzi-like payments to earlier investors.

The SEC’s complaint further alleges that Howard falsely represented his status as a registered investment adviser. However, according to FINRA BrokerCheck, Howard was registered as a financial advisor with One America Securities in Dallas Texas, from 03/26/2010 – 02/23/2015. He has three disclosure events listed on his Broker Report.

Free Consultation

The White Law Group is investigating potential claims on behalf of individual investors to recover losses inOptimal Economics Capital Partners, LLC and Howard Capital Holdings, LLC investments. If you would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

For more information on The White Law Group, please visit the firm’s website at www.WhiteSecuritiesLaw.com.