The SEC’s lawsuit alleges that Brodman operated the scheme through his company from 2016 until 2020.
The SEC alleged that Brodman founded Property Income Investors (PII) in 2016, marketing the company as a firm to buy, renovate, lease, and sell apartment buildings. Brodman was set to receive 30% from the rent profits, with the rest distributed to investors, and that he would split property sale proceeds with investors 50/50.
Brodman purportedly raised approximately $9.1 million from 156 investors through a series of unregistered securities offerings between 2016 and 2020. Instead of using the funds to purchase and renovate properties to rent, Brodman allegedly diverted approximately $1.12 million of the investor funds into his personal account.
According to the complaint, none of the profits from property sales were distributed to investors. In total, the SEC accused PII and Brodman of misappropriating and misusing approximately $2.44 million of the investor funds.
In addition to PII and Brodman, Lake Worth resident Anthony Nicolosi is accused of illegally acting as an unregistered broker, identified in the complaint as Brodman’s top sales agent. The pair are accused of violating multiple securities laws.
Brodman and Nicolosi settled the allegations against them, agreeing to pay “disgorgement of ill-gotten gains” plus interest, as well as a civil penalty.
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The Sonn Law Group is currently investigating allegations surrounding Property Income Investors, Larry Brodman, and Anthony Nicolosi. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.