UPDATE! RANDY POULSON PLEADS GUILTY
Update – Randy Poulson Pleads Guilty
We previously blogged about our investigation into potential claims regarding Equity Trust Company, Ephren Taylor, and Randy Poulson. Last week, the Securities and Exchange Commission (SEC) brought a regulatory action against Equity Trust Company. According the SEC’s allegations, Equity Trust Company acts primarily as a custodian of self-directed IRAs, including purported assets that were invested in fraudulent schemes that were run by Ephren Taylor and Randy Poulson. At least 100 investors had over $5 million invested with Taylor and Poulson and held in self-directed IRAs at Equity Trust Company.
According to the FBI, Randy Poulson pled guilty to mail fraud on June 23, 2015. The mail fraud count to which with Poulson pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Oct. 2, 2015.
Equity Trust Company is headquartered in Ohio and is organized as a trust company under the laws of South Dakota. The SEC alleged that while Equity Trust Company primarily is passive and simply holds the assets for customers, in the cases of Ephren Taylor and Randy Poulson, Equity Trust Company’s representatives actively promoted and marketed Taylor’s and Poulson’s securities offerings, including their promissory notes. The SEC also alleged that Equity Trust Company ignored several red flags in these offerings, including the lack of proper documentation; knowledge that some of the promissory notes were matured and unpaid; and knowledge of false representations made by Taylor. The SEC seeks an order that Equity Trust Company cease and desist its actions regarding Taylor and Poulson.
Ephren Taylor was from Overland Park, Kansas. Taylor issued promissory notes in his company, City Capital Corporation. According to the Kansas City Star, it turned out to be a $16 million Ponzi scheme, and Taylor was sentenced to almost 20 years in jail.
Randy Poulson was from Swedesboro, New Jersey, Poulson issued promissory notes in his company, Equity Capital Investments LLC.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration and court litigation proceedings throughout the country. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James, ProEquities, Securities America, National Securities Corp., and many others.
If you lost money with Ephren Taylor or Randy Poulson and held assets at Equity Trust Company, please Contact Us at 720-599-3505 for a free evaluation of your case.