Compliance, Enforcement

SEC Charges Two Oregon Residents with $10 Million Ponzi-Like Scheme

Introduction

The Securities and Exchange Commission (SEC) has taken action against Robert D. Christensen and Anthony M. Matic, along with their affiliated companies, for orchestrating a Ponzi-like scheme and defrauding investors who invested over $10 million in promissory notes. This article provides an overview of the case and highlights the key allegations made by the SEC.

Alleged Scheme

According to the SEC’s complaint, Christensen and Matic, operating through four entities they established—Foresee Inc., The Commission PDX LLC, The Policy PDX LLC, and Innings 150 LLC—raised funds from retail investors, including retirees, between January 2018 and September 2022. They claimed that the funds would be used for real estate investments. To entice investors, they offered unregistered promissory notes with high-interest rates ranging from nine to 15 percent, promising quick returns of both principal and interest within a few months.

However, the SEC’s complaint asserts that Christensen and Matic did not possess the means to fulfill their promises within the specified timeframes. Instead, they relied on new investments to pay earlier investors. Furthermore, the complaint alleges that they misappropriated investor funds for unauthorized purposes, including personal expenses such as vacations, gifts, casino trips, massages, a whiskey club membership, and cryotherapy, without disclosing these activities to the investors.

SEC’s Comment

Monique C. Winkler, the Director of the SEC’s San Francisco Regional Office, emphasized that Christensen and Matic used false promises of high-interest payments and quick returns to deceive investors. She further highlighted that the accused individuals spent a significant portion of the investor funds on personal entertainment and expenses. Winkler affirmed the SEC’s commitment to preventing fraudulent schemes that target hard-earned money.

Legal Action and Settlement

The SEC has filed a complaint against Christensen, Matic, and their affiliated entities in the U.S. District Court for the District of Oregon. The complaint alleges violations of antifraud and securities registration provisions of the federal securities laws. While the accused parties neither admit nor deny the allegations, they have agreed to settle with the SEC.

As part of the settlement, Christensen, Matic, and the entities involved will be subject to permanent and conduct-based injunctions. Additionally, they will be required to pay disgorgement and prejudgment interest totaling $5,374,482. Christensen and Matic have individually agreed to pay a $200,000 penalty and will face the permanent officer and director bars. It’s important to note that these settlements are subject to court approval.


For more information, or to speak to a securities attorney, call New York Securities Lawyers at 212-509-6544.

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