Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

SEC Accuses Investment Fund of Engaging in Deceptive Practices

Posted on August 29th, 2023 at 4:13 PM
SEC Accuses Investment Fund of Engaging in Deceptive Practices

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

The Securities and Exchange Commission (SEC) has brought settled charges against Summitcrest Capital Inc. and its principals, Johnny Tseng and Kevin Zhang, alleging that they engaged in an offering fraud via their real estate investment fund, SC Development Fund LLC.

The fund collected around $19.8 million from approximately 30 investors in the United States and China from February 2018 to November 2019. The fund declared bankruptcy in July 2020 and currently is not operating.

According to DIWire, the SEC complaint claims that Tseng and Zhang, co-owners of Summitcrest, managed SC Development Fund (previously named SC Development Fund V LLC), a real estate investment fund. The fund, as alleged, actively targeted investors within Chinese-speaking communities in both the United States and China for its unregistered offering.

The complaint further provided that SC Development Fund claimed it would utilize investor funds to provide real estate-related loans to the public and utilize the generated income to fulfill pledged interest payments and return capital to investors. However, according to the SEC, SC Development Fund instead exclusively directed investor funds toward loans for Zhang's own real estate development.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.

1783434190 Law
July 7, 2026
Private Credit Funds Face Mounting Redemption Pressure as Investor Sentiment Shifts

A surge in investor redemption requests has intensified pressure on private credit funds, raising concerns about liquidity and long-term stability across the asset class, as reported by The Wall Street Journal.