This case was last updated from U.S. District Courts on 11/26/2021 at 12:07:36 (UTC).

Securities and Exchange Commission v. Sky Group USA LLC et al

Case Summary

On September 27, 2021, the Securities and Exchange Commission (“Commission” or “Plaintiff”), represented by Robert Kent Levenson, attorney at SEC’s Florida regional office, filed a civil enforcement action against Sky Group (“Sky Group” or “the Company”), Betancourt (collectively, “Defendants”) and Angelica Betancourt, EEB Capital LLC (collectively, “relief Defendants”), seeking injunctive relief, disgorgement of all ill-gotten gains, and payment of civil penalties for the alleged securities offering fraud perpetrated by Defendants. This case was filed in the U.S. District Court in the Southern District of Florida with Judge Beth Bloom presiding.

In the complaint the Commission alleged that, “The Commission brings this action as the result of a three-year-long securities offering fraud conducted by Defendants that victimized hundreds of investors enticed by the Defendants’ baseless promises of a high-return, low-risk investment. From no later than January 2016 through at least March 2020, Sky Group USA, fraudulently raised more than $66 million from at least 505 investors, many of them members of the South Florida Venezuelan-American community, through the offer and sale of promissory notes (“Notes”).”

The Commission further alleged that, “The Notes generally ranged in amount from $10,000 to $150,000 and paid interest running from 24 percent to as high as 120 percent. Sky Group and Betancourt falsely represented to investors that Sky Group would use their money solely to make small-dollar, short-term loans to consumer borrowers with poor or no credit (so-called payday loans) and for costs associated with the loans. In reality, the proceeds Sky Group generated from its consumer loan business were woefully insufficient to cover principal and interest payments to investors. Sky Group and Betancourt used at least $19.2 million of investor funds to make Ponzi-like payments to other investors.”

The Commission also alleged that, “In addition, Betancourt misappropriated at least $2.9 million for personal use, including a luxury chateau wedding in France and vacations to Disney World and the Caribbean, and authorized the transfer of at least $3.6 million to friends and relatives for no apparent legitimate business purpose. The scheme unraveled in July 2019, when Betancourt told investors that Sky Group was suspending investor repayments on the Notes. Even then, Betancourt and Sky Group continued to lie, falsely blaming the suspension of repayments on a vendor responsible for processing the Company’s investor repayments.”

There are nine claims for relief laid down by the Commission. The first, second, third, and fourth claims deal with the alleged violations of Sections 5(a), 5(c), 17(a)(1), 17(a)(2) and 17(a)(3) of the Securities Act. The fifth, sixth, seventh, and eighth claims deal with the alleged violations of Section 10(b) and Rule 10b-5(a), Section 10(b) and Rule 10b-5(b), Section 10(b) And Rule 10b-5(c) and Section 15(a) of the Exchange Act. The ninth claim deals with unjust enrichment.

In its prayer for relief the Commission has requested the court to issue permanent injunctions restraining and enjoining Defendants from violating Sections 5(a), 5(c) and 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Plaintiff further requested the court to issue an order directing Defendants and all Relief Defendants to disgorge all ill-gotten gains, including prejudgment interest, and issue an order directing Defendants to pay civil money penalties along with such other relief as may be necessary and appropriate.

This case summary may not reflect the current position of the parties to this litigation or the status of this case. Sign up to view the latest case updates and court documents.

Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-23443

  • Filing Date:

    09/27/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judge

Beth Bloom

 

Party Details

Plaintiff

Securities and Exchange Commission

Defendants

Sky Group USA LLC

Jr. Efrain Betancourt

Angelica Betancourt

EEB Capital Group, LLC

Attorney/Law Firm Details

Plaintiff Attorneys

Robert Kent Levenson

Attorney at Securities & Exchange Commission

801 Brickell Avenue, Suite 1800

Miami, FL 33131

Andrew O. Schiff

Attorney at Securities and Exchange Commission

801 Brickell Avenue, Suite 1800

Miami, FL 33131

Defendant Attorneys

Mark David Hunter

Attorney at Hunter Taubman Fischer & Li LLC

2 Alhambra Plaza, Suite 650

Miami, FL 33134

Richard John Diaz

3127 Ponce De Leon Boulevard

Coral Gables, FL 33134-6816

James D. Sallah

Attorney at Sallah Astarita & Cox, LLC

3010 N Military Trail, Suite 210

Boca Raton, FL 33431

 

Court Documents

1 #1

Main Document

1 #1

Civil Cover Sheet

1 #2

Summon(s)

#3

#4

(#4) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission. Sky Group USA LLC waiver sent on 9/27/2021, answer due 11/26/2021. (Levenson, Robert) (Entered: 09/28/2021)

#5

(#5) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission. Efrain Betancourt waiver sent on 9/27/2021, answer due 11/26/2021. (Levenson, Robert) (Entered: 09/28/2021)

#6

(#6) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission. EEB Capital Group, LLC waiver sent on 9/27/2021, answer due 11/26/2021. (Levenson, Robert) (Entered: 09/28/2021)

#7

(#7) NOTICE of Attorney Appearance by Andrew O. Schiff on behalf of Securities and Exchange Commission. Attorney Andrew O. Schiff added to party Securities and Exchange Commission(pty:pla). (Schiff, Andrew) (Entered: 09/28/2021)

#8

(#8) Order Requiring Joint Scheduling Report and Certificates of Interested Parties. Signed by Judge Beth Bloom on 9/28/2021. See attached document for full details. (jas) (Entered: 09/29/2021)

#9

(#9) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission. Angelica Betancourt waiver sent on 9/27/2021, answer due 11/26/2021. (Levenson, Robert) (Entered: 10/01/2021)

#10

(#10) NOTICE of Attorney Appearance by Richard John Diaz on behalf of Angelica Betancourt. Attorney Richard John Diaz added to party Angelica Betancourt(pty:dft). (Diaz, Richard) (Entered: 10/01/2021)

#11

(#11) Unopposed MOTION for Extension of Time Extension to File Joint Scheduling Report by Angelica Betancourt. Responses due by 10/19/2021 (Diaz, Richard) (Entered: 10/05/2021)

#13

(#13) NOTICE of Attorney Appearance by Mark David Hunter on behalf of Efrain Betancourt, Sky Group USA LLC. Attorney Mark David Hunter added to party Efrain Betancourt(pty:dft), Attorney Mark David Hunter added to party Sky Group USA LLC(pty:dft). (Hunter, Mark) (Entered: 11/15/2021)

#14

(#14) Unopposed MOTION for Extension of Time to respond to Complaint re #1 Complaint, by Efrain Betancourt, Sky Group USA LLC. Responses due by 11/29/2021 (Hunter, Mark) (Entered: 11/15/2021)

#16

(#16) ANSWER and Affirmative Defenses to Complaint with Jury Demand by Angelica Betancourt. (Diaz, Richard) (Entered: 11/23/2021)

#17

(#17) ANSWER and Affirmative Defenses to Complaint with Jury Demand by EEB Capital Group, LLC. Attorney James D. Sallah added to party EEB Capital Group, LLC(pty:dft). (Sallah, James) (Entered: 11/24/2021)

5 More Documents Available
View All Documents

 

Docket Entries

  • 11/24/2021
  • View Court Documents
  • Docket(#17) ANSWER and Affirmative Defenses to Complaint with Jury Demand by EEB Capital Group, LLC. Attorney James D. Sallah added to party EEB Capital Group, LLC(pty:dft). (Sallah, James) (Entered: 11/24/2021)

    [+] Read More [-] Read Less
  • 11/23/2021
  • View Court Documents
  • Docket(#16) ANSWER and Affirmative Defenses to Complaint with Jury Demand by Angelica Betancourt. (Diaz, Richard) (Entered: 11/23/2021)

    [+] Read More [-] Read Less
  • 11/16/2021
  • DocketSet Response Due Deadline per DE 15 Order: Efrain Betancourt response due 12/10/2021; Sky Group USA LLC response due 12/10/2021. (kpe) (Entered: 11/16/2021)

    [+] Read More [-] Read Less
  • 11/15/2021
  • View Court Documents
  • Docket(#15) PAPERLESS ORDER granting ECF No. #14 Motion for Extension of Time. Defendants shall respond on or before December 10, 2021. Signed by Judge Beth Bloom (mk00) (Entered: 11/15/2021)

    [+] Read More [-] Read Less
  • 11/15/2021
  • View Court Documents
  • Docket(#14) Unopposed MOTION for Extension of Time to respond to Complaint re #1 Complaint, by Efrain Betancourt, Sky Group USA LLC. Responses due by 11/29/2021 (Hunter, Mark) (Entered: 11/15/2021)

    [+] Read More [-] Read Less
  • 11/15/2021
  • View Court Documents
  • Docket(#13) NOTICE of Attorney Appearance by Mark David Hunter on behalf of Efrain Betancourt, Sky Group USA LLC. Attorney Mark David Hunter added to party Efrain Betancourt(pty:dft), Attorney Mark David Hunter added to party Sky Group USA LLC(pty:dft). (Hunter, Mark) (Entered: 11/15/2021)

    [+] Read More [-] Read Less
  • 10/05/2021
  • View Court Documents
  • Docket(#12) PAPERLESS ORDER granting #11 Motion for Extension of Time to File Joint Scheduling Report by December 17, 2021. Signed by Judge Beth Bloom (BB) (Entered: 10/05/2021)

    [+] Read More [-] Read Less
  • 10/05/2021
  • View Court Documents
  • Docket(#11) Unopposed MOTION for Extension of Time Extension to File Joint Scheduling Report by Angelica Betancourt. Responses due by 10/19/2021 (Diaz, Richard) (Entered: 10/05/2021)

    [+] Read More [-] Read Less
  • 10/01/2021
  • View Court Documents
  • Docket(#10) NOTICE of Attorney Appearance by Richard John Diaz on behalf of Angelica Betancourt. Attorney Richard John Diaz added to party Angelica Betancourt(pty:dft). (Diaz, Richard) (Entered: 10/01/2021)

    [+] Read More [-] Read Less
  • 10/01/2021
  • View Court Documents
  • Docket(#9) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission. Angelica Betancourt waiver sent on 9/27/2021, answer due 11/26/2021. (Levenson, Robert) (Entered: 10/01/2021)

    [+] Read More [-] Read Less
  • 09/28/2021
  • View Court Documents
  • Docket(#8) Order Requiring Joint Scheduling Report and Certificates of Interested Parties. Signed by Judge Beth Bloom on 9/28/2021. See attached document for full details. (jas) (Entered: 09/29/2021)

    [+] Read More [-] Read Less
  • 09/28/2021
  • View Court Documents
  • Docket(#7) NOTICE of Attorney Appearance by Andrew O. Schiff on behalf of Securities and Exchange Commission. Attorney Andrew O. Schiff added to party Securities and Exchange Commission(pty:pla). (Schiff, Andrew) (Entered: 09/28/2021)

    [+] Read More [-] Read Less
  • 09/28/2021
  • View Court Documents
  • Docket(#6) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission. EEB Capital Group, LLC waiver sent on 9/27/2021, answer due 11/26/2021. (Levenson, Robert) (Entered: 09/28/2021)

    [+] Read More [-] Read Less
  • 09/28/2021
  • View Court Documents
  • Docket(#5) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission. Efrain Betancourt waiver sent on 9/27/2021, answer due 11/26/2021. (Levenson, Robert) (Entered: 09/28/2021)

    [+] Read More [-] Read Less
  • 09/28/2021
  • View Court Documents
  • Docket(#4) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission. Sky Group USA LLC waiver sent on 9/27/2021, answer due 11/26/2021. (Levenson, Robert) (Entered: 09/28/2021)

    [+] Read More [-] Read Less
  • 09/27/2021
  • View Court Documents
  • Docket(#3) Summons Issued as to Angelica Betancourt, Efrain Betancourt, EEB Capital Group, LLC, Sky Group USA LLC. (jc) (Entered: 09/27/2021)

    [+] Read More [-] Read Less
  • 09/27/2021
  • Docket(#2) Clerks Notice of Judge Assignment to Judge Beth Bloom. Pursuant to 28 USC 636(c), the parties are hereby notified that the U.S. Magistrate Judge Alicia M. Otazo-Reyes is available to handle any or all proceedings in this case. If agreed, parties should complete and file the Consent form found on our website. It is not necessary to file a document indicating lack of consent. Pro se (NON-PRISONER) litigants may receive Notices of Electronic Filings (NEFS) via email after filing a Consent by Pro Se Litigant (NON-PRISONER) to Receive Notices of Electronic Filing. The consent form is available under the forms section of our website. (jc) (Entered: 09/27/2021)

    [+] Read More [-] Read Less
  • 09/27/2021
  • View Court Documents
  • Docket(#1) COMPLAINT For Injunctive and Other Relief against All Defendants. Filing fees $ 402.00. USA Filer - No Filing Fee Required, filed by Securities and Exchange Commission. (Attachments: #1 Civil Cover Sheet, #2 Summon(s))(Levenson, Robert) (Entered: 09/27/2021)

    [+] Read More [-] Read Less
related-case-search

Dig Deeper

Get Deeper Insights on Court Cases


Latest cases where Sky Group USA, LLC is a litigant

Latest cases represented by Lawyer Richard J. Diaz

Latest cases represented by Lawyer Mark David Hunter