Mount Vernon, Washington- Skagit Gardens in Mount Vernon, Filed for Chapter 11 Bankruptcy protection on May 27th 2016. This is nearly three months after the owners were charged on March 10th, 2016 by the U.S. Securities and Exchange Commission (SEC) in what is described as a $350 million dollar Ponzi-scheme.
The bankruptcy has been administratively consolidated to include all four of the businesses that Skagit Gardens is operating under, including the operating company “Skagit Gardens Inc“, case number 16-12879, one holding company, “Skagit Real Estate Holdings, LLC” case number 16-12881 and two special purpose entities, “Skagit TPPSPE, LLC” case number 16-12887 and “Skagit RESPE, LLC” case number 16-12885.
According to a press release from the SEC, they charged the Oregon-based investment group and three top executives with hiding the rapidly deteriorating financial condition of its enterprise while raising more than $350 million from investors. Aequitas Management LLC and four affiliates allegedly defrauded more than 1,500 investors nationwide into believing they were making health care, education, and transportation-related investments when their money was really being used in a last-ditch effort to save the firm. Some money from new investors was allegedly used to pay earlier investors.
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