Microbilt’s Subprime Investment Fund Hid Ex-Con’s Role, SEC Says

Former executives of Microbilt Corp. and its investment fund, Princeton Alternative Funding LLC, are facing SEC allegations that they intentionally hid the fund manager’s tax fraud conviction and lied about its consumer-borrower analysis technology.

The Securities and Exchange Commission alleged in a complaint Thursday that the companies and the executives—Philip N. Burgess, Jr., Walter Wojciechowski, and John Cook Jr.—committed securities fraud by providing materially false and misleading information and representations.

These acts helped them raise more than $73 million from investors before the fund was driven into bankruptcy, according to the complaint, filed in the U.S. District Court for the ...