According to a Securities and Exchange Commission (“SEC”) complaint filed in Riverside County, California, Paul Ricky Mata (“Mata”), David Kayatta (“Kayatta”) and Mario Pincheira (“Pincheira”) are accused of violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. In addition to the fraud charges the SEC has instituted an asset freeze.
Mata, Kayatta and Pincheira were able to raise more than $14 million from over 100 investors by convincing them to invest in Secured Capital Investments, LLC and Logos Real Estate Holdings, (collectively, the “Funds”). The Funds were both unregistered and controlled by Mata. Neither fund ever posted any profits. Furthermore, the men misappropriated the proceeds for their own personal use.
Mata, Kayatta, and Pincheira used a YouTube channel and other online videos posted to Mata’s website to persuade investors to attend their investment seminars. Their seminars used language such as “Indestructible Wealth” and “Finances God’s Way”, for example, and falsely promised “guaranteed” returns. According to Lorraine B. Echavarria, Associate Director of the SEC’s Los Angeles Regional Office, the SEC alleges that “under the guise of investment seminars with buoyant slogans, these men enticed investors into investing in purported real estate funds that are nothing more than piggy banks for their personal expenses and unrelated businesses.”
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