The Securities and Exchange Commission has accused Aaron Cain McKnight of orchestrating three fraudulent investment schemes that resulted in an alleged theft from over $8.4million by at least 28 investors. The SEC has charged McKnight, his sister, a lawyer and his law firm for aiding the schemes.
According to SEC’s complaint McKnight ran at least three schemes between March 2018, and September 2021. McKnight posed as an experienced professional who controlled financial services firms in each scheme. He advertised investment opportunities that were supposedly high-returning, but which in reality did not exist. McKnight is accused of using the money from investors to pay for personal expenses and his business. He also made Ponzi-like payouts to previous investors.
The SEC alleges that Kenneth Miller and Frost & Miller LLP, his law firm (“F&M”(), played an important part in McKnight’s initial scheme. McKnight directed them to distribute over $2 million in investor funds. The SEC alleges that Miller and F&M gave this assistance to investors without understanding their expectations or the purpose of these funds.
The SEC’s complaint, filed before a federal court in Texas, accuses McKnight, BPM Global Investments, LLC.”BPM Global”BPM Asset Management, LLC) (“BPMAM”) with violating various antifraud provisions. Sherry Sims, Harmony Brooke McKnight and F&M are also charged with aiding and abetment of some of these violations. Timothy Neher is named as a relief defendant, along with his company Accelerated venture Partners, LLC. McKnight and Harmony McKnight have also been charged with being the control persons of BPM Global & BPMAM. The SEC is seeking permanent injunctions as well as disgorgement and civil penalties for ill-gotten gain, officer and director bars, and civil penalties.
Sims, who has not admitted or denied the allegations, agreed to a settlement which includes a permanent order against violating antifraud regulations and from soliciting or releasing guarantees related to securities. The court will determine civil penalties at a future date.
Jason Anthony and Michael Flanagan conducted the SEC investigation under the supervision Paul Pashkoff, Melissa Hodgman. Anna Area will lead the SEC’s litigation, under the supervision of David Nasse.
Investor alerts have been issued by the SEC’s Office of Investor Education and Advocacy regarding red flags of investment fraud. Investor.gov provides more information.
Recover Investment Losses
Are you experiencing investment losses? You should consult an investment fraud lawyer. Haselkorn & Thibaut are a reputable law firm that specializes in investment fraud. Their attorneys have extensive experience in securities litigation and arbitrage, and work tirelessly to make sure their clients get the justice and compensation that they deserve.
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SEC: What You Need to Know
Securities and Exchange Commission is the regulatory agency that enforces and oversees securities laws in the United States. Its primary function is to protect investors, and maintain fair and effective markets.
In 1934, the SEC was created in response to 1929’s stock market crash and Great Depression. Its primary objectives are to ensure accurate and complete disclosure of information by companies to the public, to prevent fraud, manipulation and other illegal activities in the financial markets, and to maintain fair and orderly trade.
The SEC is responsible for regulating various participants of the securities industry including exchanges, brokers and investment advisers. The SEC requires that companies register their securities offerings, and provide relevant financial information for the public. The agency also investigates and takes action against individuals or companies engaged in fraudulent or unlawful activities on the securities markets.
In addition to its regulatory function, the SEC also plays a vital role in promoting and advocating investor education. The SEC provides information and resources to help investors protect themselves and make informed decisions.
Overall, the Securities and Exchange Commission acts as a vital regulator for the U.S. Securities industry. It ensures transparency, integrity and protection of investors in the market.
More information can be found at
