3D Money LLC Facing Complaint by Washington State Alleging Sale of Unregistered Securities

Jeffrey Huston, part owner of 3D Money, was also named in the complaint.

The Sonn Law Group is investigating allegations that 3D Money LLC sold unregistered securities. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

On May 28th, 2020, the Washington Department of Financial Institutions filed a consent order outlining violations by 3D Money, LLC, and its part-owner, Jeffery Allen Huston. Huston is also the manager of AEHK, LLC, Maplewood Offering, LLC, and Sunrise Capital, LLC, all of which are also named in the consent order. 

According to the State of Washington, 3D Money, LLC is a Minnesota entity with its principal place of business in Litchfield, Minnesota. 3D Money describes itself as an alternative investment company specializing in real estate. Its website states that 3D Money is “dedicated to searching out value-add, cash flow opportunities in real property,” and that through its “expanding portfolio, we provide [customers with options to fit [their] unique goals.”

3D Money also states that customers can “secure [their] ticket to a worry free approach to investing” by using “3D Money’s proven wealth-building strategy.” 3D Money finds workforce housing properties, invests in and renovates them, and then rents them out through an affiliate entity using the name “Suite Liv’n Apartments.”

The consent order states that each of Huston’s LLCs were formed for the purpose of financing 3D Money’s acquisition of multifamily rental properties in various cities in Minnesota, including Willmar, Spicer, and Marshall.

The order alleges that around February 2017, Respondents Huston and his affiliated companies informally engaged an investment adviser and investment adviser representative (“Representative”) to introduce possible investors to investments through a number of offerings. The offerings consisted of promissory notes with a 3-year term set at a specific interest rate. The offerings were project-specific, with each offering relating to a certain property Respondents would acquire, renovate, and lease to tenants.

Respondents filed Form D Notices of Exempt Offering with the Securities and Exchange Commission claiming a 506(b) exemption for each of its offerings that included Washington investors. 

The Representative had previously entered into a consent order with the Securities Division in 2016 for selling unregistered securities and making false or misleading statements or omissions in the sale of these securities, in violation of the registration and anti-fraud sections of the Securities Act of Washington. An issuer is unable to claim a Rule 506 exemption under federal securities laws for an offering if it uses a compensated solicitor subject to a “disqualifying event,” including final orders by state securities regulators based on fraudulent, manipulative, or deceptive conduct issued within ten years of the issuer’s offering.

The order alleged that Huston had appeared on Representative’s podcast in February 2017 and explained the types of properties purchased by Respondents, the length of the offerings, and the benefits of these investments. The interview was posted on the Representative’s public website. 

Throughout the advertisement and offering of the investments to potential investors, Respondents allegedly did not disclose to investors that the Representative had previously entered into a consent order with the Division, or the nature of the consent order.

In addition to the securities not being registered and the exemption being inapplicable, Huston and 3D Money are not currently registered as securities salespersons or broker-dealers in the state of Washington. 

The Division alleges that the Respondents violated securities laws by offering and/or selling securities for which no registration is on file with the Securities Administrator, and for selling the securities while not being registered as securities salespersons or broker-dealers in the state of Washington. 

Additionally, the order alleges that the respondents made untrue statements of material fact or omitted to state material facts necessary to make statements made not misleading. 

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The Sonn Law Group is investigating allegations that 3D Money LLC sold unregistered securities. 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.