Frederick Alan Voight Charged by SEC for Alleged Ponzi Scheme

Frederick Alan Voight According to a press release published on August 3, 2016, the Securities and Exchange Commission has charged Houston-area businessman Frederick Alan Voight with the operation of a “$114 million Ponzi scheme that defrauded investors, some of whom were told that their money would fund technology to prevent accidents caused by drowsy driving.” The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Voight.

The SEC alleges that Mr. Voight, of Richmond, Texas, defrauded “more than 300 investors in multiple offerings of promissory notes issued by two partnerships he owns, F.A. Voight & Associates LP and DayStar Funding LP.” His most recent offering, according to the SEC’s release, “promised investors returns as high as 42 percent a year from loans to small public companies, most of the funds went to pay earlier investors.” Roughly $22 million of his “ill-gotten gains” allegedly are still unaccounted for.

According to David Peavler, Acting Regional Co-Director of the SEC’s Fort Worth Regional Office: “Voight wooed investors with promises of outsized returns and once-in-a-lifetime investment opportunities. But, like all Ponzi schemes, we allege that this one collapsed when Voight couldn’t find enough new money to keep up with his false promises.”

The SEC additionally alleges that Mr. Voight has “raised $13.8 million that he said would be loaned to a startup named InterCore Inc. to fund its deployment of a ‘Driver Alertness Detection System,’ or DADS.” In October 2014, he allegedly informed his investors of a “tremendous” chance to invest in InterCore’s installation of DADS technology into millions of trucks and buses, “which he said was enough for the company to pay the 30 to 42 percent annual interest rates on the promissory notes ‘many, many times over.’”

However, according to the SEC, Mr. Voight “knew the claims were false because he served on InterCore’s board and was aware that the Delray Beach, Florida public company was financially troubled and had no means to pay back the loans.” He allegedly used funds to pay legacy investors or “funneled them to InterCore through two of his other partnerships, Rhine Partners LP and Topside Partners LP.”

Mr. Voight and DayStar have been charged by the SEC with securities fraud and with conducting unregistered securities offerings. According to the SEC: “Voight and Daystar, without admitting or denying the allegations, agreed to settle the SEC’s complaint by consenting to permanent injunctions against committing these violations in the future. They also agreed to asset freezes and other emergency relief, and to pay civil penalties and return allegedly ill-gotten gains with interest in amounts to be set later by the court. Voight also consented to being barred from serving as a public company officer or director and to be barred permanently from participating in the offer, purchase, or sale of any security except for his own personal account.”

If you have complaints regarding energy investments made with Frederick Alan Voight, F.A. Voight & Associates LP and DayStar Funding LP, you may be able to recover lost funds. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on contingency: Fitapelli Kurta only gets paid if and when you recover money. You may have a limited window to file your claim, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.