Name and Shame
Name and Shame

RUMBAUGH FINANCIAL REVIEW

Complaint
#5YDQO

This complaint was posted on NAS on 6th Jan, 2021 and is a permanent record located here: https://www.nameandshame.com/rumbaugh-financial-5YCWU/they-manipulated-their-clients-do-not-work-with-these-advisers-id5ydqo .

NameandShame Author
The Smart Investor Feed
6th Jan, 2021

They manipulated their clients! Do not work with these advisers!

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


Rumbaugh Financial 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 Rumbaugh Financial

On November 20, 2020, the U.S. District Court for the Central District of California entered final judgments by consent against Craig Rumbaugh and two companies he owns and controls, Rumbaugh Financial, Inc. (RFI), a California-registered investment adviser, and Desert Strategic Equity, LLC (DSE). The SEC had charged Rumbaugh and his companies with misleading RFI's advisory clients about the terms of their investments, while concealing their self-dealing and receipt of commissions in connection with the investments they recommended.


The SEC's complaint, filed on August 14, 2019, alleged that Rumbaugh advised RFI's clients to invest in promissory notes offered by Susan Werth, who claimed to provide short-term high interest rate loans to real estate developers but, unbeknownst to Rumbaugh, was in fact operating a Ponzi scheme. According to the complaint, from August 2015 to June 2016, Rumbaugh persuaded eight clients to invest a total of over $3 million with Werth's companies. Three of those clients lost a total of more than $650,000 when Werth's Ponzi scheme collapsed. The complaint alleged that Rumbaugh and his entities concealed commissions totaling $140,000 that Werth paid Rumbaugh on funds raised from his clients. Rumbaugh and his companies also allegedly misrepresented the interest rates Werth's promissory notes offered, and retained the difference when the notes repaid interest at a higher rate.


Without admitting or denying the allegations in the complaint, Rumbaugh, RFI, and DSE agreed to pay $676,000 in disgorgement, with $137,808 in prejudgment interest, on a joint-and-several basis, and Rumbaugh consented to pay a civil penalty of $192,768. The judgments also permanently enjoin the defendants from violating the antifraud provisions of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and the broker-dealer registration provisions of Section 15(a) of the Exchange Act, and further enjoin Rumbaugh and RFI from violating the securities registration provisions of Sections 5(a) and (c) of the Securities Act.


In a related administrative proceeding, Rumbaugh consented to the entry of an order that bars him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, and bars him from participating in any offering of a penny stock


Conclusion: Rumbaugh Financial Is A Fraud

The report on SEC clearly suggests that Rumbaugh Financial 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 Rumbaugh Financial 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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