Today I am looking at this document and providing an overview of the SEC complaint against theatre and arts critic Robert M. Massimi; please join me on this exciting journey.

The Securities and Exchange Commission (SEC) has initiated an emergency enforcement action against HMC International, LLC (HMC), its principal Robert M. Massimi, Bret A. Grebow, and Relief Defendant Jaime L. Massimi (also known as Jaime Elliott).

Here’s a breakdown of allegations concerning Robert M. Massimi’s involvement:

1. Central Role in the Fraud: As one of the two key figures behind HMC, Robert M. Massimi is alleged to have played a pivotal role in a securities fraud scheme that saw the fund secure approximately $12.9 million from around 80 investors. He and Grebow are accused of misappropriating over $5.2 million of this amount for personal use, converting HMC into what the SEC describes as a Ponzi scheme.
2. Misrepresentation of HMC: Massimi, alongside Grebow, allegedly portrayed HMC as a “low risk” day trading entity. He is accused of sending investors fabricated monthly account statements that showed their investments as being profitable, even as HMC faced internal financial turmoil.
3. Fictitious Claims & Mismanagement: Massimi is accused of using various misleading representations to draw investments into HMC. He overstated the fund’s performance, provided false assurances about his hands-on management style, and reportedly had no real control over the fund’s trading activities, particularly those conducted by Grebow.
4. Personal Financial Gain: As the fund’s manager, Massimi is believed to have used new investments to pay profit distributions and withdrawals to existing investors. He, together with Grebow, allegedly paid themselves approximately $2.8 million in “profits” based on the manipulated account statements.
5. Asset Diversion after Fund’s Collapse: Following the 2005 collapse of HMC due to its inability to satisfy investor redemption demands, Massimi is accused of diverting assets to protect them from both investors and authorities. Notably, he is said to have transferred a significant amount to a new brokerage account under his wife, Jaime Elliott’s maiden name, to potentially shield it from investigation.
6. Continuation of Deception: Despite the evident challenges facing HMC, Massimi reportedly tried to soothe investor concerns and continued with asset diversion. The SEC highlights that Massimi’s actions, especially after learning of the Commission’s investigation, indicate an ongoing intention to perpetuate the fraud.

The SEC’s action aims to enforce legal restraints against all involved parties, emphasizing the need to prevent further violations and seeking to safeguard assets that might be used to address investor grievances.