IBJNews

SEC accuses local firm of bilking investors out of $1.7M

Back to TopCommentsE-mailPrintBookmark and Share

A local investment firm accused of bilking clients out of more than $1.7 million is the target of a civil lawsuit filed Monday by the Securities and Exchange Commission.

Rykoworks Capital Group LLC in Brownsburg and its owner, Ryan W. Koester, 40, are named in the suit, in addition to Trafalgar insurance salesman Rudolf D. Pameijer, 61, and his daughter Lindsay R. Sayer, 32.

Without admitting or denying the allegations, Pameijer and Sayer already have agreed to waive their right to a jury trial and entered into a settlement that permanently prevents them from providing investment advice in the future. They also could be ordered to repay victims with additional civil penalties.

The SEC’s complaint filed in U.S. District Court in Indianapolis accuses the trio of committing securities fraud by misappropriating investor funds for their personal use. Pameijer used the money for luxury automobiles, a motorcycle, a 30-foot boat, his son’s college tuition, a car for Sayer and various home renovations, the suit said. It said he also used funds to pay for Sayer's wedding and her honeymoon in St. Lucia.

The suit stems from an investigation by the Indiana Secretary of State's office in which Rykoworks and Pameijer's Plan America LLC in Indianapolis had their assets frozen.

Koester, Pameijer and Sayer were not licensed to provide investment advice or to sell securities in Indiana, the securities division said.

The SEC alleges that the scheme began when Pameijer, a career insurance salesman, met Koester at a marketing event in October 2009. At the event, Koester held himself out as an expert foreign currency trader, prompting Pameijer to ultimately enter into a profit-sharing agreement with Koester for clients Pameijer brought to Rykoworks.

Pameijer and Sayer began soliciting clients in October 2010 to invest with Rykoworks through promissory notes that purported to guarantee 12-percent returns, the lawsuit claims.

“Many of the investors were unsophisticated,” the complaint said, “and some included friends and family of Pameijer.”

The largest defrauded investors were a retired scrap metal worker and his wife, who gave Pameijer $1.1 million, the complaint said.

Pameijer and Sayer transferred remaining investor funds that they did not misappropriate to Koester and Rykoworks, which Koester depleted through trading losses and personal expenses. Koester also misappropriated additional funds that he raised directly from investors, according to the SEC.

As part of the scheme, the trio provided false account statements and information to investors, the suit said.

By fall 2011, Pameijer urgently sought to raise additional funds from new investors. But Koester eventually became unresponsive to Pameijer, and Pameijer told clients that Koester had absconded with their funds, the complaint alleges.


 

ADVERTISEMENT

  • do your homework
    “Many of the investors were unsophisticated,” the complaint said, “and some included friends and family of Pameijer.” --------------- This quote says it all. Anyone that thinks 12 percent returns can be guaranteed is going to get whats coming to them. The SEC too often gives consumers a false sense of security. With bad apples like this advisor it gets more people thinking more regulation is the answer. All more regulation does is make people think they are safer while increasing costs and preventing good advisors from growing their business

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Yes sir keep cashing those 300K a year checks direct to IMS, while millions disappear from the teams like Rahal's. Guess there wasn't enough ka- ching going around to keep Sarah Fisher in business without their "merger". LOL._____.Meanwhile back in Realville the series with the "best racing in the world" drew what appeared to be about 5000 live spectators ( and probably 1500 of those Target "freebies", and was beaten in the ratings by a series that reportedly consists of "parades" and aired while most people are still sleeping. That will generate those big ka-chings for sure. :-). But, hey, as long as the Speedway gets the cash who gives a damn about the teams?

  2. Welcome to PETERSON LOAN AGENCY Company (A Personalized Service for All Your Financial Needs) We, Liberal Investment Company Providers offers loan at a very low interest rate of 2%, we offer Personal loans, Debt Consolidation Loan, Venture Capital, Business Loan, Educational Loan, Home Loan, and Loan for any reason and urgent needs!. with a maximum duration of 30 years. Have you been turned down by your bank? Do you have bad credit? Do you have unpaid bills? Are you in debt? Do you need to set up a business? Worry no more as we are here to offer you a low interest loan. Our loan ranges from $5,000-USD (Five Thousand US dollars) to $50, 000,000.00.(Fifty Million US dollars). We also lend in USA DOLLARS EURO and POUNDS ! Fill in this form and forward it to our email: PETERSONLOANAGENCY@GMAIL.COM 1. Your Full names:_______ 2. Contact address:_______ 3. Country Of Residence:______ 4. Loan Amount Required:________ 5. Duration:_____ 6. Gender:_____ 7. Occupation:________ 8. Monthly Income:_______ 9. Date Of Birth:________ 10.Telephone Number:________ 11. Purpose of loan:_________ Yours In Service, MR PERRY, PETERSONLOANAGENCY@GMAIL.COM

  3. If I could actually get the prices...I would do this on my own. We need laws that force provides to publish the costs they will charge. Everyone else gives you the price in advance...except hospitals.

  4. I was under the impression that fencing is not allowed on a front yard and that on a corner, both sides are considered "front" yards, therefore can't be fenced without a variance. Also impedes the visibility for drivers at the intersection. Am I understanding this correctly? Might be why a fence was not included in the plans and a request for a variance will have to be made?.

  5. I was a big fan of Cowards and Carrots, which I got a chance to see at the show. It's currently on Kickstarter, but the designer also put out What's He Building in There last year, which got a fair amount of buzz.

ADVERTISEMENT