Adviser, Business Partner Named in Alleged $20M Fraud Scheme

A Washington state investment adviser who allegedly raised over $20 million through unregistered offerings of three funds he controlled is facing SEC fraud claims, along with his business partner.

Ronald A. Fossum Jr. misrepresented the funds’ financial condition and repeatedly commingled fund assets to satisfy liquidity needs, the Securities and Exchange Commission said Dec. 19 in a complaint filed in the U.S. District Court for the Western District of Washington.

Fossum also allegedly used over $300,000 in fund assets to pay various personal expenses, including $33,000 in exercise equipment and $150,000 toward his federal income taxes, the SEC said. Fossum ...