Glenn Mueller, of Northridge Holdings, Charged by SEC for Orchestrating Ponzi Scheme

Mueller and his company Northridge Holdings are the subject of an SEC complaint alleging misuse of investor funds.

Did your financial advisor or broker reccomend that you invest in Northridge Holdings or any properties associates with Glenn Mueller? Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.

On September 5, 2019, the Securities and Exchange Commission filed a complaint against Glenn C. Mueller, his company Northridge Holdings, Ltd., and other entities affiliated with Mueller charging them with orchestrating a $41 million fraudulent, unregistered securities offering.

“Since at least May 2014, Illinois property developer Glenn Mueller has conducted a fraudulent, unregistered securities offering through Northridge and affiliated entities he owns and controls. In the last five years, Defendants fraudulently offered and sold promissory notes totaling at least $41.6 million, in unregistered transactions, to over 300 investors across 32 states, many of whom were unsophisticated and/or unaccredited and of retirement age.” — U.S. SECURITIES AND EXCHANGE v. NORTHRIDGE HOLDINGS, LTD., Civil Action №19-cv-5957

The complaint alleged that the defendants sold more than $41 million in promissory notes in unregistered transactions to investors all over the country, many of whom were retirement age. The defendants represented to these investors that the funds would be used to purchase and renovate multi-unit real estate properties, when in reality they were used to pay returns to earlier investors and to make purported loans to Mueller’s family members.

On September 12, 2019 the United States District Court for the Northern District of Illinois imposed a preliminary injunction on Mueller, freezing his assets and appointing a receiver over the assets of the other defendants.

“In Ponzi fashion, and contrary to the representations to investors, Defendants used significant amounts of funds raised from new investors to pay promised distributions to earlier investors, as well as to pay “finders” who referred investors to Northridge, to trade stocks and options, and to make purported loans to members of Mueller’s family.” — U.S. SECURITIES AND EXCHANGE v. NORTHRIDGE HOLDINGS, LTD., Civil Action №19-cv-5957

The SEC complaint seeks injunctions against future securities law violations, disgorgement of the defendants’ ill-gotten gains, and civil penalties. The complete list of entities listed in the complaint as defendants are as follows:

Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional recommended that you invest in unsuitable products, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.