Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

SEC Accuses Investment Fund of Engaging in Deceptive Practices

Posted on August 29th, 2023 at 4:13 PM
SEC Accuses Investment Fund of Engaging in Deceptive Practices

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

The Securities and Exchange Commission (SEC) has brought settled charges against Summitcrest Capital Inc. and its principals, Johnny Tseng and Kevin Zhang, alleging that they engaged in an offering fraud via their real estate investment fund, SC Development Fund LLC.

The fund collected around $19.8 million from approximately 30 investors in the United States and China from February 2018 to November 2019. The fund declared bankruptcy in July 2020 and currently is not operating.

According to DIWire, the SEC complaint claims that Tseng and Zhang, co-owners of Summitcrest, managed SC Development Fund (previously named SC Development Fund V LLC), a real estate investment fund. The fund, as alleged, actively targeted investors within Chinese-speaking communities in both the United States and China for its unregistered offering.

The complaint further provided that SC Development Fund claimed it would utilize investor funds to provide real estate-related loans to the public and utilize the generated income to fulfill pledged interest payments and return capital to investors. However, according to the SEC, SC Development Fund instead exclusively directed investor funds toward loans for Zhang's own real estate development.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Ä¢¹½´«Ã½ just wanted to say thanks for your work in helping us get back some of the money we lost. Ä¢¹½´«Ã½ are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. Ä¢¹½´«Ã½ really appreciate the work you did.

Allan and Adele

LATEST NEWS AND ARTICLES

1787070589 Law
August 18, 2026
Senior Protection Case Study: Edward Jones and Senior Investor Safeguards

A recent incident involving Edward Jones illustrates how challenging it may be to employ safeguards for protecting older clients from financial exploitation.

1786980584 Law
August 17, 2026
Federal Judge Allows Investor Class Action Over Lightstone REIT Disclosures to Proceed

A federal judge has allowed investors to proceed with a class-action lawsuit alleging that directors and advisors of three Lightstone Value Plus REITs failed to disclose a significant conflict of interest before shareholders voted on amendments extending the funds' operating periods.

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.