SEC seeking to recover $29M from alleged swindler in Kaysville who has died
Jan 7, 2023, 10:39 AM | Updated: 2:13 pm
(Scott G Winterton, Deseret News)
KAYSVILLE, Utah — The Securities and Exchange Commission is seeking to recover over $29 million from the estate of a deceased Kaysville man they say swindled over 50 investors.
Stephen Romney Swensen, 50, is believed to have made false statements to entice people into investing in Crew Capital Group LLC, according to a complaint filed Oct. 14 in U.S. District Court, from at least July 2011 and up until his death on June 6.
Swensen allegedly told investors that Crew Capital was an investment fund paying a guaranteed minimum of 5% annually, and up to 10% annually, depending on stock market performance. He also said Crew Capital invested in various securities, including bank loans and stock options, and that the LLC was “one of the safest places to invest their money,” the complaint states.
Once investors sent in money, Swensen pooled the money in his own bank account, according to court documents.
While Swensen is believed to have made periodic payments allegedly used some of the money to make “periodic payments of fictitious earnings to certain investors in a Ponzi-like fashion,” the complaint states, he used the bulk of the money for personal expenses, such as the living expenses of his family and at least two mistresses, and luxuries such as private airplanes.
“Although Swensen is now deceased, Crew Capital continues to violate the federal securities laws by disseminating false and misleading statements to investors,” the complaint continues. “Swensen created a website for Crew Capital that is still operating and displaying fictitious information to investors about the investors’ purported ‘accounts’ with Crew Capital.” Though no such accounts exist and the money from investors is being spent by family and business associated of Swensen’s, according to the federal complaint.
Another of Swensen’s companies, Swensen Capital, was formed in 2010 and received nearly $1 million in proceeds from the investment scheme, the complaint alleges.
Other defendants named in the complaint deny all allegations of wrongdoing, according to a response from their attorneys, who said that since Swensen’s death, Capital Crew’s website has been taken down and the business has been defunct.