SEC Enforcement Action Over GL Beyond Income Fund

Daniel Thibeault

Publicly available records published by the SEC on February 16, 2018 indicate that the US District Court for the District of Massachusetts has entered a final judgment against Shawnet Thibeault, a relief defendant in an enforcement action by the SEC, in connection to allegations that she received money allegedly misappropriated from investors in GL Beyond Income Fund by her husband, investment adviser Daniel Thibeault. Fitapelli Kurta is interested in hearing from investors who have lost money investing in GL Beyond Income Fund.

According to the SEC, Daniel Thibeault misappropriated at least $15 million in GL Beyond Income Fund’s money. He allegedly represented that investors’ funds “would be pooled and used to make or purchase consumer loans,” which would provide a return upon payment of interest and principal payments. However, according to the complaint, Mr. Thibeault and other defendants, though not Ms. Thibeault, “engaged in a scheme to create fictitious loans to steal money from the Fund, and to report those fake loans as assets of the Fund.” He and these other defendants allegedly participated in this scheme so as to hide their “misappropriation of millions of dollars” from GL Beyond Income Fund.

According to his FINRA BrokerCheck report, Daniel Thibeault was the subject of a 2015 FINRA injunction stemming from the alleged misappropriation. The SEC’s complaint stated that the scheme “involved the fabrication of paperwork purporting to reflect numerous six-figure consumer loans” employing names and personal information of persons who were not aware that loans were being originated in their names. GL Beyond Income Fund’s money was allegedly “disbursed to fund these fictitious loans, but the borrowed money did not go to the purported borrowers,” according to the complaint, and instead went to Mr. Thibeault and other defendants, who used the funds “for personal expenses and to run business other than the income fund.” He was barred by the SEC in 2016, after he pled guilty to one count of securities fraud and one count of aiding and abetting obstruction of justice.

In the judgment against Shawnet Thibeault, she was ordered to pay disgorgement totaling $468,236, a sum representing the amount she received from the alleged violations by Mr. Thibeault and other defendants. She was also ordered to pay prejudgment interest totaling $49,826, amounting to total payments of $518,062.

If you or someone you know has complaints regarding investments in GL Beyond Income Fund, call the experienced attorneys at Fitapelli Kurta at 877-238-4175 for a free consultation. You may be entitled to recover lost funds. All cases are taken on contingency: we only receive payment if and when you collect money. Time to file your claim may be limited, so we suggest you avoid delay. Call 877-238-4175 now to speak to an attorney for free.