Name and Shame
Name and Shame

CAPSOURCE INC REVIEW

Complaint
#5YDQ1

This complaint was posted on NAS on 6th Jan, 2021 and is a permanent record located here: https://www.nameandshame.com/capsource-inc-5YCW7/horrible-scam-that-ruin-lives-id5ydq1 .

NameandShame Author
The Smart Investor Feed
6th Jan, 2021

A Horrible Scam That Ruin Lives!

Today, The Smart Investor Feed brings you another morally reprehensible fraud.


CapSource Inc (& Michael B. Zipprich) has been seized/arrested by the U.S. Securities And Exchange Commission (SEC). Shocking right?


We weren’t expecting this as well, but these scammers are getting smarter by the minute, making it harder for us to identify.


Such swindlers seem to be booming in numbers lately. This case is kind of interesting, why don’t I show you why:

Full Report On CapSource Inc (& Michael B. Zipprich)

The Securities and Exchange Commission today charged Las Vegas-based hard money lender CapSource, Inc., its principals, Stephen J. Byrne and Gregory P. Herlean, Arizona-based real estate developer Michael B. Zipprich, and several entities Zipprich controlled for fraud and registration violations in connection with multiple, related securities offerings.


According to the SEC's complaints, from approximately January 2015 through May 2019, CapSource, Byrne, and Herlean, acting as unregistered brokers, offered and sold over $151 million of securities in unregistered offerings to finance various real estate projects, including $28 million for entities related to Zipprich's drug rehabilitation business, America's Rehab Campuses, LLC (ARC). The complaints allege that by approximately May 2017, ARC had experienced significant financial difficulties and cost overruns in connection with retrofitting its primary treatment facility. According to the complaints, CapSource, Byrne, and Herlean knew, or were reckless in not knowing, that Zipprich was keeping ARC's primary treatment facility afloat by improperly diverting to ARC millions of dollars raised through CapSource for various other projects he managed. The complaints further allege that Zipprich defrauded investors by raising approximately $10 million in additional funds through CapSource purportedly to pay for future renovations to ARC's primary treatment facility, while instead using a substantial amount of those proceeds to partially repay and conceal the previous diversion of investors' funds.


CapSource, Byrne, and Herlean have consented to entry of judgments that, among other things, permanently enjoin them from violating the registration provisions of Sections 5(a) and 5(c) of the Securities Act, the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and the broker-dealer registration provisions of Section 15(a) of the Exchange Act. The judgments order Byrne to pay disgorgement of $1,538,990 with prejudgment interest of $200,844 and a civil penalty of $192,768 and order Herlean to pay disgorgement of $760,303 with prejudgment interest of $90,319 and a civil penalty of $192,768. CapSource agreed to monetary relief against CapSource to be determined by the court at a later date. The settlements are subject to court approval. The SEC's litigated complaint against Zipprich and his ARC-related entities charges them with violating the antifraud and registration provisions of Sections 5(a), 5(c), and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.


Conclusion: CapSource Inc (& Michael B. Zipprich) Is A Fraud

The report on SEC clearly suggests that CapSource Inc (& Michael B. Zipprich) never had any intentions to do honest business or provide helpful services. Main intention behind all their actions was to take advantage of the honesty & gullibility of people and scam them. It would be an understatement to call this a mere fraud, this one is a scandal.


If you feel like you are a victim of this scam, then I recommend contacting a law firm and consulting with them about a lawsuit. Companies & firms pay huge reprimands to settle serious lawsuits.

Help Us Fight These Criminals

Do you have evidence against CapSource Inc (& Michael B. Zipprich) or one of their associates, then please post it here. These criminals rely on their witnesses’ & victims’ silence, if you speak up, then they get exposed and punished for their horrific acts. I started The Smart Investor Feed on this site with only one purpose; to become a nightmare for the financial frauds in the country. I try to post often, so you can bookmark my profile for regular updates on frauds & con-artists.


Full Disclosure: We sourced this piece of information from the SEC database


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