NORWALK – A firm has been ordered to reimburse investors at least $7 million and fined for selling unregistered securities and not informing customers of the risks.
Banking Commissioner Howard F. Pitkin said Ulysses Partners, LLC and James E. Neilsen, of Norwalk violated state securities law. The firm and Neilsen were fined $25,000 and required to reimburse each of the investors the amount of funds collected plus interest, which totals at least $7,000,000.
“This is a sad story of trust and betrayal,” stated Pitkin. “These victims trusted Neilsen as their personal and business accountant, and invested in Ulysses based on his reassurances that they would surely become millionaires. The company, however, never made a profit, and those investors lost millions due to his fraudulent activities.”
Pitkin commended the victims who came forward and filed their complaints. If people believe they may be the victim of an investment scam, they are asked to contact the Department of Banking.
The Commissioner concluded that between 2005 and 2012, both Ulysses Partners and Neilsen sold unregistered securities in the form of promissory notes, subscription agreements and investment agreements to 33 persons who invested approximately $7,438,341. The commission also determined the company, through Neilsen, violated the antifraud provisions by misrepresenting the anticipated rate of return and omitting any type of written disclosure or discussion of risks. Pitkin said Neilsen works as an accountant and tax preparer in Connecticut and the majority of victims were his accounting clients.
The state could have imposed fines of up to $100,000 per violation, but fined the respondents $25,000 in order to make more money available for reimburse the former clients.
