Categories: SEC

Hartman Wright Group, LLC and Tytus W. Harkins

Litigation Release No. 24575 / August 27, 2019

Securities and Exchange Commission v. Hartman Wright Group, LLC and Tytus W. Harkins, No. 19-cv-02418 (D. Colo. filed Aug. 26, 2019)

The Securities and Exchange Commission filed charges against Hartman Wright Group, LLC, a real estate company, and its founder, Tytus W. Harkins, for raising over $8 million in an unregistered real estate-based offering fraud.

According to the SEC’s complaint filed in the U.S. District Court for the District of Colorado, Hartman Wright Group, a Colorado company, and Harkins, a Montana resident, have operated a fraudulent scheme since January 2015, raising more than $8 million from at least 25 investors. The complaint alleges that Hartman Wright Group and Harkins solicited investors through paid finders, mailing lists, seminars, and the company’s website, telling investors that the company found distressed or undervalued mobile home parks, purchased them and made capital improvements, and then sold them for a profit. The SEC alleges that Hartman Wright Group and Harkins promised investors a specified rate of return, and equity ownership in some cases. According to the SEC’s complaint, investors received monthly interest payments, which were often paid using other investor funds. The complaint further alleges that Hartman Wright Group and Harkins overstated the purchase price on properties to hide fees Hartman Wright Group paid itself, failed to use investor money for the specific properties as represented, misrepresented amounts invested in properties, and overstated Hartman Wright Group’s financial position.

The SEC’s complaint charges Hartman Wright Group and Harkins with violating the registration and antifraud provisions of Sections 5(a), 5(c), and 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 complaint seeks permanent injunctions, disgorgement plus prejudgment interest, and penalties.

The SEC’s investigation was conducted by Matthew L. Skidmore and supervised by Mary S. Brady of the Denver Regional Office. The SEC’s litigation is being led by Stephen C. McKenna and Terry R. Miller, and supervised by Gregory Kasper.

IR Press

Share
Published by
IR Press

Recent Posts

Treasury Issues Final Rule Expanding CFIUS Coverage of Real Estate Transactions Around More Than 60 Military Installations

WASHINGTON – Today, the U.S. Department of the Treasury (Treasury), as Chair of the Committee…

2 days ago

U.S. Department of the Treasury’s CDFI Fund and Federal Housing Finance Agency Collaborate to Bolster CDFI Access to Capital

WASHINGTON—Today, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) and…

2 days ago

Report on U.S. Portfolio Holdings of Foreign Securities at Year-End 2023

Washington – The findings from the annual survey of U.S. portfolio holdings of foreign securities…

3 days ago

READOUT: U.S. Department of the Treasury Hosts Roundtable Discussion on the Financial Sector’s Response to Recent Hurricanes

WASHINGTON – The U.S. Department of the Treasury hosted a roundtable on October 30 with…

3 days ago

READOUT: Sixth Meeting of the Financial Working Group Between the United States and the People’s Republic of China

WASHINGTON – The United States and the People’s Republic of China held the sixth meeting…

3 days ago

Treasury Sanctions Key Members of La Linea, a Group Involved in Trafficking Fentanyl into the United States

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned…

3 days ago