On January 29, 2021, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Daniel Investments Associates, LLC (“Daniel Investments”) and Gregory D. Van Wyk (“Van Wyk”) (collectively, the “Respondents”).  In the Order, the Commission found that Daniel Investments, a registered investment adviser based in Santa Barbara, California, and its principal, Van Wyk, failed to disclose to an investor material information regarding promissory notes issued by Essex Capital Corporation (“Essex Capital”), and Essex Capital’s principal, Ralph Iannelli (“Iannelli”).  On June 5, 2018, the Commission charged Essex Capital and Iannelli with conducting an $80 million offering fraud, and on December 21, 2018, Essex Capital was placed under a court-ordered receivership.

The Commission specifically found that in early 2018, Daniel Investments and Van Wyk negligently withheld material adverse financial information about Essex Capital from trustees who were evaluating whether to maintain an investment in $1.25 million worth of Essex Securities managed by Daniel Investments. During meetings with the trustees, Van Wyk recommended that the trustees remain invested in the Essex Securities while withholding adverse information about Essex Capital, negligently misleading the trustees about the reliability of the investment in the Securities. The trustees did not learn of Essex Capital’s financial problems until the Commission brought an action against Essex Capital for operating an offering fraud. As a result of Essex Capital’s fraud, the trustees may be unable to recover the full $1.25 million principal amount of the Essex Securities. 

The Commission ordered the Respondents to pay $1,564.00 in disgorgement, $236.38 in prejudgment interest, and a $75,000 civil money penalty, for a total of $76,800.38, to the Commission.  The Commission also created the Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty paid, along with the disgorgement and interest paid, can be distributed to the harmed investor.   See the Commission’s Order:  Release No. IA-5675

The Fair Fund includes the $76,800.38 paid by the Respondents.  The Fair Fund and has been deposited in a Commission-designated account at the U.S. Department of the Treasury, and any accrued interest will be added to the Fair Fund.

On March 11,2024 the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator of the Fair Fund.  See the Commission’s Order:  Release No. 34-99711.

For more information, please contact the Commission:

Office of Distributions

Email: ENFOfficeofDistributions@sec.gov