A.G. Morgan Financial Advisors, Llc

Allegations: PLAINTIFF SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION") ALLEGES THAT THIS CASE CONCERNS AN UNREGISTERED SECURITIES OFFERING THAT RAISED MORE THAN $75 MILLION FROM MORE THAN 200 INVESTORS. FROM NO LATER THAN AUGUST 2017 UNTIL AT LEAST NOVEMBER 2017 AND FROM NO LATER THAN DECEMBER 2018 UNTIL AT LEAST JULY 2020, INVESTMENT ADVISER A.G. MORGAN FINANCIAL ADVISORS, LLC ("AGM"), ITS PRINCIPAL VINCENT J. CAMARDA, ANDITS FORMER CHIEF COMPLIANCE OFFICER JAMES MCARTHUR VIOLATED THE FEDERAL SECURITIES LAWS. THE DEFENDANTS SOLICITED INVESTORS AND OFFERED OR SOLD PROMISSORY NOTES TO INVESTORS IN CONNECTION WITH A MORE THAN $500MILLION UNREGISTERED FRAUDULENT OFFERING WITH LENDING COMPANY COMPLETE BUSINESS SOLUTIONS GROUP, D/B/A PAR FUNDING ("PAR FUNDING"). WHILE SOLICITING INVESTORS, AGM AND CAMARDA VIOLATED THEIR FIDUCIARY DUTY TO THEIR INVESTMENT ADVISER CLIENTS BY FAILING TO DISCLOSE TO INVESTORS THAT THEY HAD A CONFLICT OF INTEREST. SPECIFICALLY, IN DECEMBER 2016, CAMARDA, ON BEHALF OF AGM, BEGAN BORROWING MONEY FROM PAR FUNDING THROUGH SO-CALLED "MERCHANT CASH ADVANCE" TRANSACTIONS ("THE LOANS"), AND BY JULY 2017, AGM OWED PAR FUNDING APPROXIMATELY$750,000 IN CONNECTION WITH THE LOANS. IN AUGUST 2017, CAMARDA AND MCARTHUR BEGAN SOLICITING INVESTORS TO INVEST IN PROMISSORY NOTES ISSUED BY PAR FUNDING IN PAR FUNDING'S UNREGISTERED SECURITIES OFFERING. FROM AUGUST 2017 UNTIL NOVEMBER 2017, CAMARDA AND MCARTHUR SOLICITED NEARLY ONE DOZEN INVESTORS TO INVEST AT LEAST $2.6MILLION IN PROMISSORY NOTES ISSUED BY PAR FUNDING. HOWEVER, IN SEPTEMBER 2017, CAMARDA TOLD AT LEAST TWO INVESTORS THAT IT WAS A SAFE INVESTMENT, WHILE FAILING TO DISCLOSE THAT HIS COMPANY AGM WAS IN DEBT TO PARFUNDING AND THAT CAMARDA WAS A GUARANTOR ON THAT DEBT TO PAR FUNDING. AGM, CAMARDA AND MCARTHURCOLLECTIVELY RECEIVED MORE THAN $7 MILLION IN COMPENSATION FROM PAR FUNDING FOR THEIR SALES OF THE UNREGISTERED SECURITIES. AS A RESULT OF THE CONDUCT DESCRIBED IN THIS COMPLAINT, THE FIRM VIOLATED SECTIONS 5(A) AND (C) OF THE SECURITIES ACT AND SECTION 15(A)(1) OF THE EXCHANGE ACT. Status: Pending Summary: THE ACTION IS CURRENTLY PENDING.