SEC v. Rudolf D. Pameijer, et al., Case No. 1:12-CV-01364 (S.D. In.). On September 24, 2012, the SEC announced fraud charges against Rudolf D. Pameijer, Lindsay R. Sayer, Ryan W. Koester and his entity Rykoworks Capital Group, LLC. Koester claimed to be an expert foreign currency trader, and told investors that his trading strategy produced guaranteed results. Koester and Pameijer agreed share profits for clients Pameijer brought to Rykoworks. Pameijer and his daughter, Sayer, solicited investments with Rykoworks through promissory notes that promised to protect principal while offering risk free returns from forex trading. Rather than invest client money, however, Pameijer and Sayer used the most of the funds they raised for personal use, including to pay for luxury cars, home renovations, and Sayer’s wedding and honeymoon. Pameijer and Sayer transferred some investor money to Koester and Rykoworks, and Koester also raised money from investors directly. Koester suffered significant trading losses and also misappropriation money for personal use. To hide the fraud, Defendants provided false account statements and information to investors.
The SEC charged Defendants with violating Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Pameijer and Sayer are also charged with violating Section 15(a) of the Exchange Act by acting as unregistered brokers. Pameijer and Sayer have settled with the SEC by agreeing to permanent injunctions against violations of the anti-fraud and other provisions of the federal securities laws. The Court will later determine the amount civil monetary penalties and disgorgement. Pameijer and Sayer also agreed to a SEC order barring them from future association with any investment adviser, broker, dealer, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; and barring them from participating in any offering of a penny stock.
Koester and Pameijer have also been charged by the Indiana state criminal authorities in a parallel criminal action.