Horizon Private Equity III LLC Losses?

Soreide Law Group is reviewing whether to bring lawsuits on behalf of those who invested in Horizon Private Equity III LLC, operated by John Justin Woods (CRD#: 1949233, Atlanta, Georgia). Notably, John Woods, who worked as an Oppenheimer Co. Inc. securities broker and financial advisor (January 2003 to December 2006), and who owns and presides over Livingston Group Asset Management Company Inc. (known as Southport Capital), faces Securities and Exchange Commission (SEC) accusations that he operated a Ponzi scheme known as Horizon Private Equity III LLC in violation of federal antifraud laws. Supposedly, more than 400 investors committed funds. Here’s more on SEC’s allegations against Woods, Southport Capital and Horizon Private Equity III LLC, and what you could do if you incurred losses.

400 Investors Reportedly Affected By John Woods’ Horizon Private Equity III Scheme, SEC Says

SEC’s August 2021 Complaint alleges that Woods ran a Ponzi scheme known as Horizon Private Equity III LLC for more than 10 years. By year end July 2021, SEC contends, this scheme left investors being owed $110 million. The regulator indicates that at least 400 investors across the United States invested in the scheme, most of whom were elderly and retired and who Southport Capital’s advisors targeted. Moreover, SEC alleges in the Complaint that this scheme keeps bringing in new investors.
According to SEC, Woods and other Southport Financial representatives told clients that they would get between six and seven percent interest on a guaranteed basis for two-to-three years by investing in Horizon Private Equity. Woods and company purportedly told the investors about Horizon’s ability to generate returns through investments in stocks, government bonds, and minor real estate projects. They allegedly failed to mention that investors’ funds could go towards paying earlier investors.

SEC Indicates That New Investor Funds Went To Existing Investors

Notably, SEC claims that Horizon has been incapable of paying guaranteed returns to existing investors absent the receipt of new investor funds. As for the investments that Woods and Southport Advisors reportedly made for clients, SEC says that they did not generate significant profits . Because of this, the Complaint states that new investors’ returns have been reportedly made through new investor funds, not through actual investment returns.
The regulator’s Complaint specifies that existing investors are at serious risk of losing their principal or any returns that Woods and his advisors promised. Because of this, many elderly investors’ life savings could vanish when the scheme fails, SEC contends.
According to SEC’s Complaint, brought in the United States District Court for the Northern District of Georgia, Livingston Group Asset Management Company has at least $824,000,000 in clients’ assets under its management. It appears that Woods used offices and employees of Southport to conduct his operations. SEC says that he should not remain in control of those assets given the allegations against him.

Woods Reportedly Used Southport To Push Horizon Investment

SEC also noted that Woods used Horizon for purposes of raising investor funds for the scheme. He controlled Horizon’s operations and the use of funds. However, there are reportedly no offices or employees of Horizon. Supposedly, all actions of Horizon came at the hands of Woods and his employees at Southport.
Critically, SEC says that Woods did not maintain adequate records and books for Southport and Horizon in a manner resembling a normal investment fund. Because of this, SEC says that there is no way to account for millions of investor funds at the moment.
Finally, SEC alleges that Woods lied to investigators when Southport underwent a regulatory examination.
SEC’s Complaint alleges that Woods violated antifraud provisions of the Securities Act, Exchange Act, and Investment Advisers Act. Because of SEC’s concerns of the breadth of this scheme, and about more investors potentially falling victim to it, they seek an asset freeze, a receiver, disgorgement, civil penalties, and other emergency relief so that whatever remaining assets can be protected and preserved for victims.
This matter is ongoing.

Harmed By Investing In Horizon Private Equity III LLC Through Woods, Southport Capital?

Evidently, John Woods and other defendants in SEC’s Complaint deny accusations of misconduct. Have you incurred losses or damages by investing in Horizon Private Equity III LLC? If so, touch base with Soreide Law Group at (888) 760-6552 and speak with a skilled securities lawyer about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has meaningfully helped recover compensation for hundreds of clients in the United States who have been harmed by their securities brokers and financial advisors.