Scott Valente and The ELIV Group Accused of Fraudulently Raising over $8.8 Million
Scott Valente is accused of lying to his clients about the success of their investments and using their money for his own personal use, according to a complaint filed by the Securities and Exchange Commission (“SEC”).
The Peiffer Rosca securities practice attorneys Jason Kane and Joe Peiffer are investigating the matter.
Valente and his firm, The ELIV Group LLC, fraudulently raised over $8.8 million from approximately 80 clients by falsely stating that they achieved consistent and outsized positive returns in addition to other misrepresentations about the safety of the investments, according to the complaint. ELIV Group is accused of not earning positive results and is alleged to have sustained consistent investment losses in recent years, according to the complaint.
Valente is accused of making substantial cash withdrawals from the funds of clients and spending their money on home improvements and mortgage payments in addition to jewelry and a vacation condominium, according to the complaint. Valente’s failed trading strategies and the alleged misappropriations have significantly reduced the amount of client funds on hand at ELIV Group, according to the complaint.
Valente is also accused of misleading investors by stating he has a 30-year record of investing experience “dedicated to the highest standards of service” and that he founded ELIV Group after leaving the “corporate financial industry” after concluding that there “had to be a better way for clients to achieve financial independence,” according to the complaint. Valente failed to disclose that he filed for bankruptcy twice and that he was permanently expelled from the securities industry by the Financial Industry Regulatory Authority, according to the complaint.
Valente and ELIV Group attracted clients by falsely representing that the principal amount of their investments were fully liquid and guaranteed because they were purportedly secured by a large money market fund, according to the complaint. However, the client funds were never guaranteed or secured by any money market funds, and the majority of ELIV Group’s investments were in highly illiquid investments, according to the complaint.
The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.
Broker: Scott Valente
Status: INVESTIGATED by Peiffer Rosca.
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