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SEC Charges Long Island RIA and Executives in $138 Million Private Fund Scheme

Posted on April 7th, 2026 at 11:13 AM
SEC Charges Long Island RIA and Executives in $138 Million Private Fund Scheme

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

A Long Island-based registered investment adviser and two of its senior executives now face parallel civil and criminal proceedings tied to an alleged scheme involving conflicted private fund investments, as reported by InvestmentNews.

According to reporting by InvestmentNews, the Securities and Exchange Commission (SEC) filed a civil complaint in the Eastern District of New York alleging that A.G. Morgan Financial Advisors, along with its owner and CEO Vincent J. Camarda and president James E. McArthur, raised at least $138 million from more than 400 investors. The firm solicited those investments through promissory notes tied to five private funds that the executives created and controlled.

The SEC alleges that the firm marketed those investments as conservative and income-generating, offering annualized returns of 9 percent or 11 percent with monthly distributions. Many investors were existing advisory clients, including retirees and individuals nearing retirement.

In reality, the complaint asserts that the funds lacked the diversification described in offering materials, as reported by InvestmentNews. Four funds allegedly concentrated entirely on a single mining company, while another fund invested exclusively in a coffee business owned by a family member of one of the executives. The SEC claims the structure created undisclosed conflicts of interest that the firm failed to disclose to investors.

The alleged scheme unraveled in early 2024 when the underlying investment stopped making payments, which halted distributions to investors. The SEC estimates that investors lost approximately $123 million in principal.

As InvestmentNews reports, the case highlights regulatory focus on conflicts of interest, disclosure failures, and the misuse of client funds in private investment offerings.

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

Tags: eccleston, eccleston law, sec enforcement, securities fraud, registered investment adviser, private funds, conflicts of interest

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