Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—E.D. Wis.: Wisconsin man charged with operating a real estate-related offering fraud, (Aug 20, 2025)

By R. Jason Howard, J.D.

Promises to purchase, fix, and flip real estate for profit were untrue.

The SEC has charged a Wisconsin man and his three limited liability companies, investors Capital LLC, Global Investors Capital LLC, and High-Income Performance Partners LLC, with engaging in a real estate-related offering fraud (SEC v. Nantomah, No. 2:25-cv-01130 (E.D. Wis. Aug. 1, 2025)).

Fraud. The SEC’s complaint explains that from approximately May 2020 through at least January 2024, the defendant solicited investors by promising to purchase, fix, and flip real estate for profit. Using numerous false and misleading statements about himself and his companies, the defendant was able to collectively raise at least $1.9 million from at least 30 investors throughout the United States, including at least nine investors in Wisconsin. Instead of using the money for its stated purpose, the defendant used at least 80 percent of the funds on himself and his other ventures.

Charges. The complaint charges the defendants with violating Sections 5(a), 5(c), and 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 complaint also alleges that the individual defendant is liable as a control person pursuant to Section 20(a) of the Exchange Act for the other defendants’ violations.

Relief sought. The SEC is seeking permanent injunctive relief against all defendants, a conduct-based injunction against the individual defendant, and disgorgement with prejudgment interest and a civil penalty against all defendants.

The case is No. 2:25-cv-01130.

Attorneys: Eric M. Phillips for the SEC.

Companies: Investors Capital LLC; Global Investors Capital LLC; High Income Performance Partners LLC.

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