Investor Lawyers Blog
The U.S. Securities and Exchange Commission (“SEC”) has alleged that unregistered investment adviser John A. Masanotti, Jr. (“Masanotti”) of Darien, Connecticut and his company, Middlesex Mortgage Group LLC (“MMG”), violated federal law in connection with investments that MMG induced from outside investors, totaling least $5.9 million, beginning in 2016. Many of the MMG investors allegedly liquidated securities they held in retirement accounts to invest in the fund.
The SEC Complaint is accessible here. SEC Complaint
According to the SEC. MMG and Masanotti allegedly used investor money to make Ponzi-like payments to investors and also used some investor funds for Masanotti’s “extravagant personal expenses.”