Alaska investors may have lost millions of dollars what is being characterized as a fraudulent securities operation being run by an Anchorage business that is now in hot water with the State Division of Banking and Securities.
The division says Tycoon Trading LLC and its sole owner Garrett A. Elder have violated provisions of the Alaska Securities Act and have been ordered to cease and desist.
The division warns there may be many victims to this alleged scam. The division has so far received information from 12 investors about securities that Elder sold to them between June 23, 2018 through Feb. 7, 2022, but the State says there may be many more investors with significantly more money invested through Elder and Tycoon Trading.
The cumulative amount known to have been invested was nearly $1.8 million made by or on behalf of Alaskans between the ages of 6 to 63. According to the State, Elder issued falsified statements to investors reflecting positive earnings on investments.
“All or substantially all of the investors’ assets have been dissipated. Despite repeated attempts, investors have been unable to access their funds,” the State agency wrote.
The Division says the securities included “participation in profit sharing agreements, investment contracts, and speculative trading in foreign currencies to Alaska residents through his business Respondent Tycoon Trading LLC. Investors would deposit money with Elder based on Elder’s assertions that Elder would use his expertise to further invest the funds for a profit. The investment contracts signed by or on behalf of investors required splitting the profits between the investor and Tycoon Trading LLC. Elder managed and traded assets held in a common pooled accounts by executing securities transactions without being registered as an investment adviser representative as required by state statute.”
In the state’s order, signed by Commissioner Julie Sand and Banking and Securities Director Robert Schmidt, Elder and Tycoon Trading is a legal directive to stop all activities relating to securities trading, to pay $1.777 million in restitution and $1.777 in civil penalties. Elder could request a hearing to be held on the. matter, but until such time, he’s prevented from doing business as an investment agent or financial adviser, and the State of Alaska says it is further investigating to see if there are other victims.
The company was first organized in Alaska and registered with the State Department of Commerce in 2012, with the purpose stated of doing “miscellaneous financial investment activities.”
The State document was posted today: