EquiAlt CEO Accused of Ponzi Scheme Must Face SEC Fraud Suit

The CEO of EquiAlt LLC lost his bid to have an SEC case over his purported participation in a $170 million Ponzi scheme thrown out because the agency properly alleged fraud, a federal judge in Florida said.

Brian Davison challenged the sufficiency of the Securities and Exchange Commission’s complaint against him, but none of his arguments were persuasive, the U.S. District Court for the Middle District of Florida said. The agency accused Davison and others of defrauding investors who took part in the real estate investment company’s unregistered securities offerings.

The SEC complaint pleaded fraud with the required particularity, ...