Patrick Howard: Unregistered Advisor Allegedly Creates Ponzi-Like Scheme

Patrick HowardPublic records published by the Securities and Exchange Commission (SEC) on March 2, 2017 indicate that Dallas-based businessman Patrick Howard has been charged by the SEC with fraud. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Howard.

According to an SEC press release dated February 16, 2017, “since February 2015, Patrick O. Howard and two Dallas-based companies he controls – Optimal Economics Capital Partners, LLC and Howard Capital Holdings, LLC – have raised approximately $13 million from 119 investors through the fraudulent offer and sale of interests in three private funds.” Mr. O’Howard and his companies allegedly told investors that their investments would yield returns between 12% and 20% “with minimal risk exposure,” and allegedly represented that “nearly all investor funds would be used to acquire the interests in the portfolio companies’ revenue streams, and that the promised returns were backed by insurance.” According to the SEC’s complaint, “these representations were false.” Mr. Howard and his companies allegedly “only used $7.5 million of the $13 million in investor funds to acquire revenue streams from portfolio companies and spent most of the rest on Howard’s personal expenses and on unrelated business expenses.” He also allegedly sent customers false account balances, encouraging them to reinvest funds, to “cover up” for the companies’ revenue’s insufficiency to support guaranteed minimum returns. “Additionally, Optimal Economics allegedly used new investor funds to make Ponzi-like payments to earlier investors,” the release states.

Finally, Mr. Howard allegedly also falsely represented to investors that he was a registered investment adviser, which he was not. After the SEC filed its complaint in a Dallas federal court, the court “issued a temporary restraining order halting the offering, as well as orders appointing a receiver over, and freezing, the defendants’ assets.” The SEC is seeking disgorgement of ill-gotten gains, preliminary and permanent injunctions, prejudgment interest and civil penalties in the pending complaint.

If you have lost money investing with Patrick Howard, you may be able to recover your losses. Call Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on a contingency basis: Fitapelli Kurta only gets paid if and when you collect funds. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.