The SEC charged a South Florida investment manager with defrauding investors by making false claims about his investment track record and providing bogus account statements that reflected fictitious profits. SEC Findings and Allegations. In its complaint filed in the U.S. District Court for the Southern District of Florida, the SEC alleges that since 2005, George Elia and Int'l Consultants & Investment Group Ltd. Corp., pulled in at least $11 million from investors by falsely claiming annual returns as high as 26%, while wining and dining prospective investors at expensive restaurants in and around Fort Lauderdale.  Many of his clients were referred to his by friends and relatives.  A significant number of them were members of the gay community in Wilton Manors, FL. Elia, age 67, and until recently a resident of Oakland Park, FL, told investors that he had extensive experience in day trading stocks and ETFs.  In reality, his trading generated losses or marginal gains, and the quarterly account statements sent to clients clearly overstated their returns. Elia and ICIG operated the scheme through an informal "Investor Funding Club" and through funds, including Vision Equities Fund II, LLC and Vision Equities Fund IV, LLC.  It alleges that Elia sent one investor a statement for the first 3 quarters of 2009, showing returns of 3.48%, 3.48%, and 3.52% respectively.  Elia also transferred more than $2.5 million the funds to 2 entities he controlled - Elia Realty, Inc., and 212 Entertainment Club, Inc.

"Elia's blatant fraud and cruel deceptions have wrecked the lives of investors and their families.  This is a sad lesson that investors must always be skeptical of claims of high and steady investment returns, even when the manager is recommended by trusted friends or members of one’s own community." -- Eric Bustillo, Reg'l Director of the SEC Miami Reg'l Office.

In a parallel criminal case, the U.S. Attorney for the Southern District of Florida announced that Elia was indicted on 4/5/12 on 1 count of wire fraud. SEC Charges. Elia and ICIG are alleged to have violated anti-fraud provisions of U.S. securities laws and that Elia aided and abetted violations by the firms.  The SEC seeks permanent injunctions against Elia and ICIG, disgorgement of ill-gotten gains plus pre-judgment interest, and civil penalties.  The complaint also named Elia Realty, Inc. and 212 Club Entertainment, Inc. as relief defendants. SEC Staff Credits. Investigation by Senior Investigative Counsel Robert Murphy and Staff Accountant Timothy Galdencio, supervised by Assistant Regional Director Eric Busto in the Miami Regional Office.  Edward McCutcheon will lead the litigation efforts. The Commission’s investigation is continuing. For further details, go to: [SEC PR 12-56, 4/6/12], [SEC Complaint], [Ask Questions - Questions to Ask About Your Investments], and [Affinity Fraud].