The SEC has filed a civil suit against David Thibeault, an alternative fund manager, nearly a month after he was arrested by the FBI on charges of securities fraud. The SEC made many of the same allegations against Thibeault that the FBI made, specifically accusing him of funneling around sixteen million dollars in assets from the GL Beyond Income Fund, of which he was portfolio manager. That fund invested primarily in individual consumer loans and held roughly $42.6 million in total assets as of December 8.

Thibeault allegedly took out fictitious loans through an intermediary he controlled called Taft Financial Services in order to move cash from the fund. Thibeault claims that there is more to the story than meets the eye but was unable to comment further, adding that “[w]hat occurred here is pretty bizarre.”

Allegedly, Thibeault’s scheme began in 2013 after GL started losing money. Documentation for the loans taken out through Taft was in some cases either erroneous or missing, and some included incorrect dates of birth for the borrowers. According to the SEC, “Thibeault began a scheme to use the fund’s money to support his faltering financial advisory businesses.”

The SEC is asking for civil penalties and disgorgement of the purportedly illicit gains.

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.