Victor Lee Farias and IAL Charged by SEC

On July 30, 2020, the Securities and Exchange Commission (SEC) filed a complaint against Victor Lee Farias, a former broker and financial advisor, and his company Integrity Aviation & Leasing, LLC, (IAL) for running an alleged Ponzi-like scheme. The SEC alleges that from 2013 through January of 2019, Farias and his company, IAL, defrauded investors, several were retired San Antonio Police Department officers or first responders, out of more than $14 million through an alleged fraudulent investment scheme involving the offer and sale of purportedly secured promissory notes.
The SEC alleges that Victor Lee Farias and IAL, represented to the investors that their money would be used by IAL to purchase aircraft engines and other aviation assets that would be leased or sold to major airlines. The SEC alleged that investors were told that funds derived from this business would be used to pay investors interest on their investments at the rate of 10-12% per year.
According to the SEC, Victor Lee Farias and IAL misrepresented many parts of the offering. Farias and IAL allegedly represented that the promissory notes issued by IAL were secured by IAL's assets. According to the SEC, Victor Lee Farias and IAL misspent a large portion of the investors' funds, and used only a small portion of the investors’ funds for the intended purpose. The SEC states that Farias and IAL spent approximately $6.5 million of the $14 million raised to pay investors in a Ponzi-like scheme, they invested approximately $2.7 million in a friend's gas station, and allegedly paid nearly $1 million to IAL's sales staff for their efforts in recruiting investors to purchase IAL's promissory notes.
The SEC alleges that Victor Lee Farias also misappropriated $2.4 million of investors’ funds for his own use, including meals, entertainment, auto expenses, retail purchases, travel, apartment rent, jewelry, luxury retail purchases, and golf and country club expenses.
According to an article in Financial Advisor IQ, Victor Lee Farias allegedly used the SEC’s letterhead from the SEC’s investigation of his activities to show “proof” that he was working with the SEC to take IAL public.
The SEC is seeking injunctive relief, disgorgement plus prejudgment interest and civil penalties.
According to FINRA’s BrokerCheck, Victor Lee Farias had been in the securities industry for 15 years and was previously registered both as a broker and as an investment advisor. He had been listed with 6 firms.
If you or an elderly love one have become a victim of this alleged Ponzi-like scheme due to the actions or recommendations of Victor Lee Farias and/or Integrity Aviation & Leasing, LLC, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA and we work on a contingency fee basis--no fee to you if no recovery.