The Arizona Corporation Commission prevailed in Maricopa County Superior Court in an appeal brought by the defendants in 2016 against Bart Ellis and Oak Capital Partners, LLC, for investor fraud.
A decision made by the Arizona Corporation Commission, dated January 3, 2018, was appealed by the defendants in Maricopa County Superior Court. The court, on Tuesday, ruled in favor of the Corporation Commission’s original decision.
The Corporation Commission’s Securities Division found that Bart Ellis, and his registered entity, Oak Capital Partners, LLC, committed violations of the Arizona Securities Act and the Investment Management Act, for investor fraud and not being registered as a securities salesman. Mr. Ellis was found to have defrauded investors out of approximately $1.1 million dollars over a period of four years beginning in the Fall of 2012. Securities Division staff concluded that roughly half of the investor funds were used by Mr. Ellis to pay his personal expenses, the other half was lost on day-trading activities.
The Corporation Commission ordered payment of full restitution to investors and an administrative penalty of $100,000. Additionally, the Corporation Commission found that the marital community of Bart and Colleen Ellis was jointly and severely liable for the restitution and penalties. Ms. Ellis appealed this portion of the decision in Maricopa County Superior Court, who, on appeal upheld the Corporation Commission’s decision.
Mr. Ellis was also prosecuted by the United States Attorney’s Office. He was found guilty, ordered to pay restitution and penalties, and in October 2017 was sentenced to two years in prison.