Investors in promissory notes of Credit Nation Capital, LLC (“CN Capital”) and affiliated companies may have viable legal claims based upon allegations in cases filed by the United States Securities and Exchange Commission (“SEC”).
Money
The SEC filed a lawsuit in 2015 alleging that CN Capital and affiliates were engaged in fraud. The companies allegedly lost massive amounts of money and stayed afloat only by raising more money from investors, according to the SEC lawsuit. According to the SEC, related entities allegedly included Credit Nation Acceptance, LLC, a Texas limited liability company in Midland, Texas; Credit Nation Auto Sales, LLC, a Georgia limited liability company in Woodstock, Georgia, American Motor Credit, LLC, a Georgia limited liability company in Woodstock, Georgia; and Spaghetti Junction, LLC, a Nevada limited liability company.
The CN Capital-affiliated companies allegedly raised tens of millions of dollars from investors who purchased unregistered promissory notes, most of which promised a 9% return. The SEC complaint further alleged that CN Capital touted the safety of the promissory notes, describing them to investors as “100% asset backed” and “backed by hard assets dollar for dollar.” In reality, according to the complaint, CN Capital generated substantial losses for several consecutive years and was insolvent. The SEC lawsuit alleged that contrary to representations made to investors portraying the notes as a secure investment capable of generating reliable investment returns, CN Capital basically operated as an ongoing Ponzi scheme through which the promised investment returns were paid using new investor money.
In October 2017, the SEC filed another lawsuit accusing Georgia attorney Marc A. Celello of allegedly assisting CN Capital in the sale of unregistered promissory notes.
The attorneys at Law Office of Christopher J. Gray, P.C. have significant experience in recovering funds on behalf of aggrieved investors who have lost money due to financial frauds, including Ponzi schemes. Persons who have invested in what may be a Ponzi scheme or some other fraudulent enterprise, may contact our office at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.