The 72-year-old former broker was also ordered to pay over $7 million in restitution
If you’ve lost money investing with Dennis Gibb or Sweetwater Investments, you may have a claim. Contact Sonn Law today by filling out our form to submit a confidential message, or call us anytime at 866–827–3202 to schedule a free consultation.
Dennis Gibb, a former advisor of the Washington-based firm he owned, plead guilty early this year to wire fraud and falsification of records. The charges came after it was discovered that Mr. Gibb had engaged in theft of funds invested with his firm, Sweetwater Investments, to pay for his own personal expenses.
Mr. Gibb began promoting a private fund called Sweetwater Income Flood in 2007, in which around 20 clients invested a total of $7.3 million. Over the course of several years, Mr. Gibb stole approximately $3.1 million from the invested money.
In order to conceal his activity, Mr. Gibb created fake account statements and tax documents, including falsely claiming that his fund had been independently audited. In June 2018, the SEC Office of Compliance Inspections and Examinations visited his firm, and shortly after his scheme was revealed. Mr. Gibb as since reportedly been very cooperative during the investigation.
In addition to the SEC consent decree ordering him to liquidate his firm and an order to pay several million dollars in restitution to his former clients and the government, Mr. Gibb faces a five-year prison sentence. He is currently awaiting assignment to a federal detention center, according to his attorney.
Under FINRA Rules, brokerage firms are responsible for supervising the activity of their brokers and may be liable for misconduct. If you experienced losses investing with a brokerage firm like Sweetwater Investments or Dennis Gibb, contact Sonn Law Group today, as you may have a claim.