SEC Obtains Final Judgment Against Equity Firm

In the U.S. District Court for the District of Colorado, the SEC obtained final judgments against an investment manager, his "self-described" private equity firm and other investment funds he managed.

In a complaint filed in 2015, the SEC charged Donald J. Lester, Rubicon Alliance, LLC ("Rubicon") and other funds managed by Mr. Lester with various violations related to alleged securities fraud. The SEC claimed that Mr. Lester and Rubicon raised over $10 million for two investment funds by selling securities that were not registered with the SEC. The SEC charged Mr. Lester and Rubicon with failing to (i) register as a broker or (ii) associate with a registered broker.

Mr. Lester consented to the final judgment, and agreed to pay a $25,000 fine and comply with certain bans, while retaining the right to reapply in five years. Rubicon and the other funds that were the subject of the SEC complaint agreed to enter into receiverships in order to satisfy their obligations