South Florida Arbitration & Litigation Lawyer Blog
In the Matter of Prescient Capital Partners, Ltd. and Steven C. Young
On September 24, 2012, the Commission issued an Order Instituting Cease-And-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Making Findings, And Imposing Remedial Sanctions And a Cease-And-Desist Order (Order) against Prescient Capital Partners, Ltd. and Steven C. Young. The Order finds the following: Prescient Capital Partners, Ltd. (PCP) and its owner, Steven C. Young (Young), offered unregistered securities in the form of loan participations issued by PCP. The offerings raised over $7 million from 23 investors from 2010 through 2011. Investors, whom PCP called “loan participants,” provided funds that PCP loaned to commercial borrowers. Investors received a pro rata share of the loan, including the interest payments made by the borrower. PCP and Young ostensibly intended to offer and sell the investments in reliance on the registration exemption contained in Regulation D, Rule 506 under the Securities Act, but failed to comply with the regulatory requirements. PCP and Young made multiple general solicitations using mail, email, social media, and Internet websites and videos, and they solicited and accepted investments from at least four unaccredited, unsophisticated investors. The unregistered, non-exempt offerings violated Sections 5(a) and 5(c) of the Securities Act.
Based on the above, the Order directs that PCP and Young cease and desist from committing or causing any violations and any future violations of Sections 5(a) and (c) of the Securities Act and, jointly and severally, pay disgorgement of $28,987 and prejudgment interest of $981 to the United States Treasury. PCP and Young consented to the issuance of the Order without admitting or denying any of the findings therein. (Rel. 33-9363; File No. 3-15042)
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