This case was last updated from PACER on 09/23/2021 at 05:47:35 (UTC).

Securities and Exchange Commission v. Simeon et al

Case Summary

On September 22, 2021, the Securities and Exchange Commission (“Commission” or “Plaintiff”), represented by Pascale Guerrier and Sanjay Wadhwa, attorneys at SEC’s Florida regional office, filed a civil enforcement action against Frantz Simeon (“Simeon”) and First Black Enterprises, Inc. (“First Black Enterprises”) (collectively, “Defendants”), seeking injunctive relief and disgorgement of all ill-gotten gains along with payment of civil monetary penalties for the alleged fraudulent offering by Defendants. This case was filed in the U.S. District Court in the Eastern District of New York with Judges Allyne R. Ross and James M. Wicks presiding.

 

In the complaint Plaintiff alleged that, “From at least April 2019 through at least February 2021, Simeon, a convicted felon, and his wholly-owned entity, First Black Enterprises, engaged in a Ponzi-like offering fraud that raised at least $335,000 from approximately 13 investors, most of whom are members of the Haitian-American community in the New York City area. Among other things, Simeon falsely promised prospective and existing investors a risk-free, insured investment opportunity with guaranteed returns in the form of monthly “interest” payments of 10% of the principal invested. Simeon also falsely told prospective and existing investors that investors could exit the investment at any time upon 30-days’ notice for a full return of their principal.”

 

Plaintiff further alleged that, “To further the scheme, Simeon and First Black Enterprises deceived prospective investors into believing that Simeon was a successful businessman with decades of experience, and that First Black Enterprises was a revenue-generating business. In reality, Simeon misrepresented his business experience and track record, and knew that First Black Enterprises conducted little-or- no actual business or investment activities with investor funds and had no meaningful revenue stream. Instead of using investors’ monies for investment purposes, Simeon used new investor funds to pay monthly interest payments to them and earlier investors. Simeon also misappropriated investor funds to pay his personal and other expenses.”

 

Plaintiff also alleged that, “In or around the Fall of 2020, when Defendants no longer had funds to pay the monthly returns promised to existing investors due to the lack of any actual business or investment activities and their prior misuse of investor funds, Defendants ceased making most monthly interest payments and did not return investors’ principal investments. Yet, Simeon and First Black Enterprises continued to mislead investors, soliciting and accepting new investor funds through at least February 2021. Many investors who put their trust in Simeon lost a significant portion of their principal investments.”

 

There are two claims for relief laid down by Plaintiff. The first claim deals with the alleged violation of Securities Act Section 17(a) and the second claim deals with the alleged violation of Exchange Act Section 10(b) and Rule 10b-5 thereunder.

 

In its prayer for relief Plaintiff has requested the court to permanently enjoin Defendants and all persons in active concert or participation with any of them from violating, directly or indirectly, Securities Act Section 17(a), Exchange Act Section 10(b), and Rule 10b-5 thereunder. Plaintiff also requested the court permanently prohibit Simeon from serving as an officer or director of any company that has a class of securities registered under Exchange Act. Plaintiff also requested the court to order Defendants to pay civil monetary penalties and to disgorge all ill-gotten gains along with prejudgment interest.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    2:21-CV-05266

  • Filing Date:

    09/22/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judge

Allyne R. Ross

Referral Judge

James M. Wicks

 

Party Details

Plaintiff

Securities and Exchange Commission

Defendants

Frantz Simeon

First Black Enterprises, Inc.

Attorney/Law Firm Details

Plaintiff Attorneys

Sanjay Wadhwa

Attorney at U.S. Securities and Exchange Commission

200 Vesey Street, Room 400

New York, NY 10281

Pascale Guerrier

Attorney at Securities and Exchange Commission

200 Vesey Street, Ste 400

New York, NY 10281

 

Court Documents

#5

(#5) Summons Issued as to First Black Enterprises, Inc. (Rodin, Deanna) (Entered: 09/22/2021)

#4

(#4) Summons Issued as to Frantz Simeon. (Rodin, Deanna) (Entered: 09/22/2021)

#3

(#3) In accordance with Rule 73 of the Federal Rules of Civil Procedure and Local Rule 73.1, the parties are notified that if all parties consent a United States magistrate judge of this court is available to conduct all proceedings in this civil action including a (jury or nonjury) trial and to order the entry of a final judgment. Attached to the Notice is a blank copy of the consent form that should be filled out, signed and filed electronically only if all parties wish to consent. The form may also be accessed at the following link: #http://www.uscourts.gov/uscourts/FormsAndFees/Forms/AO085.pdf. You may withhold your consent without adverse substantive consequences. Do NOT return or file the consent unless all parties have signed the consent. (Rodin, Deanna) (Entered: 09/22/2021)

2 #1

Additional Corrections

2 #2

Main Document

1 #3

Proposed Summons Frantz Simeon

1 #2

Proposed Summons First Black Enterprises, Inc.

1 #1

Civil Cover Sheet

1 #1

Main Document

 

Docket Entries

  • 09/22/2021
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  • Docket(#5) Summons Issued as to First Black Enterprises, Inc. (Rodin, Deanna) (Entered: 09/22/2021)

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  • 09/22/2021
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  • Docket(#4) Summons Issued as to Frantz Simeon. (Rodin, Deanna) (Entered: 09/22/2021)

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  • 09/22/2021
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  • Docket(#3) In accordance with Rule 73 of the Federal Rules of Civil Procedure and Local Rule 73.1, the parties are notified that if all parties consent a United States magistrate judge of this court is available to conduct all proceedings in this civil action including a (jury or nonjury) trial and to order the entry of a final judgment. Attached to the Notice is a blank copy of the consent form that should be filled out, signed and filed electronically only if all parties wish to consent. The form may also be accessed at the following link: #http://www.uscourts.gov/uscourts/FormsAndFees/Forms/AO085.pdf. You may withhold your consent without adverse substantive consequences. Do NOT return or file the consent unless all parties have signed the consent. (Rodin, Deanna) (Entered: 09/22/2021)

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  • 09/22/2021
  • DocketCase Assigned to Judge Allyne R. Ross and Magistrate Judge James M. Wicks. Please download and review the Individual Practices of the assigned Judges, located on our #website. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. (Rodin, Deanna) (Entered: 09/22/2021)

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  • 09/22/2021
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  • Docket(#2) This attorney case opening filing has been checked for quality control. See the attachment for corrections that were made, if any. (Davis, Kimberly) (Additional attachment(s) added on 9/22/2021: #1 Additional Corrections) (Rodin, Deanna). (Entered: 09/22/2021)

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  • 09/22/2021
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  • Docket(#1) COMPLAINT against All Defendants, Was the Disclosure Statement on Civil Cover Sheet completed -No, filed by Securities and Exchange Commission. (Attachments: #1 Civil Cover Sheet, #2 Proposed Summons First Black Enterprises, Inc., #3 Proposed Summons Frantz Simeon) (Guerrier, Pascale) Modified on 9/22/2021 (Rodin, Deanna). (Entered: 09/22/2021)

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