Unregistered Broker Raised Millions for EquiAlt Ponzi, SEC Says

An unregistered broker and his firm allegedly raised at least $4.85 million as part of the $170 million EquiAlt LLC Ponzi scheme, according to an SEC complaint filed in federal court in California.

Robert Joseph Armijo and Joseph Financial Inc. sold EquiAlt securities to more than 50 investors and made about $1.1 million in transaction-based sales commissions, the Securities and Exchange Commission says in a complaint filed in the U.S. District Court for the Southern District of California.

Armijo and his firm weren’t registered as broker-dealers, and EquiAlt’s securities offerings weren’t registered or exempt from registration, the complaint says. Armijo ...