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SEC Files Fraud Action Against Equipment Leasing Company and Its, Founder, Ralph Iannelli, in $80 Million Promissory Note Scheme

The Securities and Exchange Commission has sued an equipment leasing company, Essex Capital Corporation, and its principal for fraud in connection with their sale of over $80 million in promissory notes.

Per the SEC’s complaint, between 2014 and 2017, Essex Capital Corporation and its founder, Ralph T. Iannelli, issued numerous false statements and illusory personal guarantees to registered investment advisers to cause them to invest millions of dollars of their clients’ money in Essex’s deteriorating equipment leasing business.

Fraud Action Against Essex Capital Corporation

The SEC alleges that Essex and Iannelli gave one investment adviser fake financial statements that inflated Essex’s assets by more than $20 million and falsely told another investment adviser that Essex would assign equipment leases to its clients when the same leases had already been pledged as collateral for bank loans. The SEC’s complaint further contends that as Essex’s finances crumbled, the company engaged in frequent Ponzi-like payments, paying interest and principal to existing Essex investors with funds raised from new investors.  Simultaneously, Iannelli allegedly paid himself millions of dollars in bonuses and drained millions out of Essex through interest-free loans with no maturity date.  The SEC claims that Iannelli personally owes Essex over $6.4 million.

The SEC’s complaint charges Iannelli and Essex with fraud violations and seeks disgorgement of ill-gotten gains along with interest, monetary penalties, and permanent injunctions.

 Stockbroker Fraud Lawyer David Chase

If you purchased promissory notes issued by Essex Capital Corporation from an investment advisor, contact stockbroker fraud lawyer David Chase for a confidential, no-cost consultation about your ability to recover your investment losses at: (800) 760-0192 or at: david@davidchaselaw.com.  ​Stockbroker fraud lawyer David Chase is the principal of the SEC law firm, David R. Chase, PA, based in Fort Lauderdale, Florida.  Stockbroker fraud lawyer David Chase represents defrauded stock market investors nationwide.