SEC Hits Founder of Roaring Investments with $2.95M Fine

​The U.S. Securities and Exchange Commission(SEC) has charged a New Jersey Investment Adviser with "engaging in unlawful offering and sale" involving forex and cryptocurrency. 

More specifically, the adviser was facing fraud charges, which included seven counts of mail fraud, 30 counts of wire fraud, one count of bank fraud, one count of securities fraud, one count of investment adviser fraud, and two counts of money laundering.

According to the regulator, Alexander Rowland violated 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 thereunder.

The SEC alleges that Rowland started an investment company in July 2016 that he incorporated in New Jersey, called Roaring Investments, Inc.. Rowland alleged himself as an licensed and experienced investment adviser who offers investing advice and sales in forex and cryptocurrency etc., and fraudulently promised customers with a minimum rate of return of 25%, with potential returns of 50% or higher. As a result, several victims were inexperienced and financially unsophisticated and liquidated retirement accounts or obtained home equity loans to acquire the money to invest with his company. 

The files showed that from July 2016 through at least February 2020, Rowland made an offering fraud in which he raised approximately $2.95 million from approximately 122 investors through his company, Roaring Investments, Inc.

In addition, the SEC seeks injunctive relief, the disgorgement of ill-gotten gains with prejudgment interest, and civil penalties.