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SEC Charges Real Estate Developer With Fraud in Project Tied to New Commuter Rail Station

Posted on October 6, 2018 at 3:40 PM
The SEC charged a Virginia real estate developer with skimming investor funds that were intended for use in purchasing an office building near the site of a planned commuter rail station on the Washington Metropolitan Area Transit Authority???s Silver Line. The complaint also alleged commingling and misappropriation of investments in various real estate and other projects. As alleged in the SEC's complaint: 1) Oover at least a four-year period, Todd Elliott Hitt used two of his companies - Kiddar Capital LLC and Kiddar Group Holdings, Inc. - to raise more than $20 million from investors for the purpose of acquiring and operating the Silver Line office building, new home construction in Northern Virginia, and a fund managed by Hitt that invested in a startup business. 2) Hitt made misrepresentations about his own investments in the ventures and misappropriated several million dollars of investor funds to support his extravagant lifestyle and make Ponzi-like payments to prior investors. As part of his settlement with the SEC, the terms of which remain subject to court approval, Hitt consented to entry of a judgment freezing his assets and imposing conduct-based injunctions that enjoin him from participating in the offer or sale of interests in real estate development companies. Hitt also has consented to the appointment of a receiver over a number of the corporate defendants and relief defendants. Under the terms of the proposed settlement, the receiver would protect investors, prevent asset dissipation and loss, and attend to the businesses. Penalties and disgorgement would be determined by the court at a later date. Read More: https://www.sec.gov/news/press-release/2018-229

Categories: Fraud