Jon P. Kubler, Kubler Consulting LLC, Aksarben Evolution LLC, AV Bhill LLC, CFH Texas LLC, Green Saddle LLC
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25842 / September 21, 2023
Securities and Exchange Commission v. Jon P. Kubler, et al., No. 8:23-cv-408 (D. Neb. filed September 14, 2023)
SEC Obtains Emergency Relief to Halt Nebraska-Based Ponzi Scheme
The Securities and Exchange Commission today announced that it obtained a temporary asset freeze, restraining order, and other emergency relief against Jon P. Kubler and several Nebraska-based entities that he controls--Kubler Consulting, Aksarben Evolution, AV Bhill, CFH Texas, and Green Saddle--for allegedly engaging in a multi-year Ponzi scheme that misappropriated and misused investors' funds.
According to the SEC's complaint, unsealed today in the U.S. District Court in the District of Nebraska, since at least 2016, Kubler and his companies raised approximately $5.6 million from investors to purportedly invest in commercial real estate companies but only used 4% of what was raised to make actual investments. The SEC's complaint alleges that Kubler and his companies fraudulently used new investor money to make Ponzi-like payments to earlier investors in order to deceive investors into believing that the Kubler companies were profitable. The complaint also alleges that Kubler misappropriated investor funds for personal use, including payments for rent on his home, a payment to a winery, payments to purchase antiques, and payments for online dating services.
The SEC's complaint charges Kubler and his companies with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks injunctions, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties against Kubler and his companies. The SEC also charged two entities as relief defendants, which the SEC alleges were controlled by Kubler and received investor funds from the alleged scheme. On September 15, 2023, the Honorable Robert F. Rossiter, Jr., Chief Judge for the District of Nebraska, entered a temporary restraining order against Kubler and his companies, an order freezing the defendants' and relief defendants' assets, and an order prohibiting Kubler and his companies from raising additional investor funds.
The SEC's investigation was conducted by Kenneth E. Stalzer, Michael D. Hoke, and Tracy W. Bowen, and was supervised by Marc D. Ricchiute, Kimberly L. Frederick, Nicholas P. Heinke, and Jason J. Burt, all of the Denver Regional Office. The SEC's litigation is being conducted by Christopher E. Martin and Leslie J. Hughes, and supervised by Gregory A. Kasper, Mr. Heinke, and Mr. Burt.
If you are an investor in Aksarben Evolution, AV Bhill, CFH Texas, or Green Saddle, or if you have information related to this investigation and you wish to contact the SEC staff, please submit a tip at www.sec.gov/tcr.