2020-12-21 sec-litreleases litigation_release 65 KB 1,796 chars

SEC v. Dike Boone Nerren, No. LR-24991, Eastern District of Texas (Dec. 21, 2020) — Press Release

raw: Dike Boone Nerren

Dike Boone Nerren, No. 4:20-cv-00965 (Dec. 21, 2020)

Caption
Securities and Exchange Commission v. Nerren
Source PDF JSON
summary

Dike Boone Nerren, a Texas-based real estate developer, was charged by the SEC with fraud for diverting $450,000 from $1.4 million raised through two securities offerings, resulting in a total loss for investors and agreeing to a $37,500 civil penalty.

paragraph

Dike Boone Nerren, a Texas-based real estate developer, was charged by the SEC with fraud for diverting $450,000 from $1.4 million raised through two securities offerings, Sapient Fund II, LLC and Vintage Place Fund, LP. The diverted funds led to financial difficulties and ultimately, the foreclosure of the project, resulting in a total loss for investors. Nerren agreed to a permanent injunction and a $37,500 civil penalty without admitting or denying the allegations.

narrative

The Securities and Exchange Commission (SEC) charged Dike Boone Nerren, a Texas-based real estate developer, with fraud in connection with two securities offerings he used to fund a real estate project in McKinney, Texas. Between 2015 and 2017, Nerren raised approximately $1.4 million through Sapient Fund II, LLC and Vintage Place Fund, LP, but diverted $450,000 of those funds to an unrelated real estate project without disclosure to investors. The misappropriation led to financial difficulties and ultimately, the foreclosure of the project, resulting in a total loss for investors. Nerren was charged with violating Sections 17(a)(2) and (3) of the Securities Act of 1933. Without admitting or denying the allegations, Nerren agreed to a permanent injunction and a $37,500 civil penalty, subject to court approval. The SEC's investigation was conducted by its Fort Worth Regional Office, and the litigation is being handled by Matthew Gulde. The settlement is pending court approval.

Enriched metadata

Scheme
unregistered-securities (90%)
Court
Eastern District of Texas
Case No.
4:20-cv-00965
Outcome
settled
Civil penalty
$37,500
Victim loss
$1,400,000
Entity
Dike Boone Nerren
Classified unregistered-securities(confidence 90%). EDGAR detection: forms Form D/S-1· recall 41% / precision 30%. detection rule →
Statutes
Sections 17(a)(2) and (3) of the Securities ActSections 17(a)(2) and (3) of the Securities ActSections 17(a)(2) and (3) of the Securities Act
Parties
Securities and Exchange CommissionDike Boone Nerren
Keywords
nerrendike booneboone nerrenreal estatesec'sdikeboonerealestatesecuritiesprojectestate developerdecember securitiessecurities exchangeexchange commission

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 3
  • $1.40M $1.4 million $1M–$10M
  • $450K $450,000 $100K–$1M
  • $38K $37,500 $10K–$100K
Entities 3
  • person dike boone nerren
  • person nerren diverte
  • agency Securities and Exchange Commission
Triples 40
  • Securities and Exchange Commission charged Dike Boone Nerren with fraud
  • Dike Boone Nerren raised approximately $1.4 million
  • Dike Boone Nerren used Sapient Fund II, LLC and Vintage Place Fund, LP
  • Dike Boone Nerren diverted funds
  • SEC charged Dike Boone Nerren
  • SEC alleges Nerren diverte
  • Dike Boone Nerren charged with fraud
  • Dike Boone Nerren raised approximately $1.4 million
  • Dike Boone Nerren used Sapient Fund II, LLC and Vintage Place Fund, LP
  • Dike Boone Nerren diverted funds
  • SEC filed lawsuit against Dike Boone Nerren
  • SEC charged Dike Boone Nerren with fraud
  • Dike Boone Nerren funded real estate project in McKinney, Texas
  • SEC announced charges against Dike Boone Nerren
  • Dike Boone Nerren charged with fraud in connection with two securities offerings to fund a real estate project in McKinney, Texas
  • Dike Boone Nerren raised approximately $1.4 million through Sapient Fund II, LLC and Vintage Place Fund, LP
  • Dike Boone Nerren charged with fraud in connection with two securities offerings to fund a real estate project in McKinney, Texas
  • Dike Boone Nerren raised approximately $1.4 million through Sapient Fund II, LLC and Vintage Place Fund, LP
  • Securities and Exchange Commission charged Dike Boone Nerren
  • Dike Boone Nerren used two securities offerings
  • Nerren raised $1.4 million
  • Nerren diverted funds
  • Dike Boone Nerren charged with fraud in connection with two securities offerings to fund a real estate project in McKinney, Texas
  • Dike Boone Nerren raised approximately $1.4 million through Sapient Fund II, LLC and Vintage Place Fund, LP
  • Dike Boone Nerren charged with fraud in connection with two securities offerings to fund a real estate project in McKinney, Texas
  • Dike Boone Nerren raised approximately $1.4 million through Sapient Fund II, LLC and Vintage Place Fund, LP
  • Securities and Exchange Commission charged Dike Boone Nerren
  • Dike Boone Nerren used two securities offerings
  • Dike Boone Nerren raised $1.4 million
  • Dike Boone Nerren diverted funds
  • Securities and Exchange Commission charged Texas-based real estate developer Dike Boone Nerren with fraud
  • Dike Boone Nerren raised approximately $1.4 million through Sapient Fund II, LLC and Vintage Place Fund, LP between 2015 and 2017
  • Litigation Release No. 24991 dated December 21, 2020
  • SEC charged Texas-based real estate developer Dike Boone Nerren with fraud
  • SEC used to fund a real estate project in McKinney, Texas
  • Nerren raised approximately $1.4 million through Sapient Fund II, LLC and Vintage Place Fund, LP
  • SEC charged Dike Boone Nerren
  • Dike Boone Nerren used securities offerings
  • Nerren funded real estate project in McKinney, Texas
  • SEC alleges Nerren diverte
PDF (from attached: complaint)
against Defendant Dike Boone Nerren (“Nerren” or “Defendant”), and respectfully shows the · Source
Text layers
Extracted body text (1,796c) 
SEC Charges Real Estate Developer with Fraud Lit. Release No. 24991 / December 21, 2020 Securities and Exchange Commission v. Dike Boone Nerren, 4:20-cv-00965 (E.D. Tex. filed December 21, 2020) The Securities and Exchange Commission today charged Texas-based real estate developer Dike Boone Nerren with fraud in connection with two securities offerings he used to fund a real estate project in McKinney, Texas. According to the SEC's complaint, between 2015 and 2017 Nerren raised approximately $1.4 million through Sapient Fund II, LLC and Vintage Place Fund, LP. The complaint alleges that Nerren diverted $450,000 of those funds to an unrelated real estate project he was developing, without disclosure to investors and in contravention of the disclosures in the offering materials. According to the complaint, although Nerren began repaying the diverted funds, the project experienced financial difficulties and Nerren was unable to pay the project's bills because of the diversion of funds. As alleged, the McKinney project was ultimately foreclosed, resulting in a total loss for the investors. The SEC's complaint, filed in federal district court for the Eastern District of Texas, charges Nerren with violating the antifraud provisions of Sections 17(a)(2) and (3) of the Securities Act of 1933. Without admitting or denying the SEC's allegations, Nerren agreed to be permanently enjoined from violating the charged provisions and to pay a $37,500 civil penalty. The settlement is subject to court approval. The SEC's investigation was conducted by Derek Kleinmann and Carol Stumbaugh, and supervised by Barbara L. Gunn and Eric R. Werner of the SEC's Fort Worth Regional Office. The SEC's litigation is being conducted by Matthew Gulde, and supervised by B. David Fraser. SEC Complaint
OCR text (1,796c · html-text · 99% conf) 
SEC Charges Real Estate Developer with Fraud Lit. Release No. 24991 / December 21, 2020 Securities and Exchange Commission v. Dike Boone Nerren, 4:20-cv-00965 (E.D. Tex. filed December 21, 2020) The Securities and Exchange Commission today charged Texas-based real estate developer Dike Boone Nerren with fraud in connection with two securities offerings he used to fund a real estate project in McKinney, Texas. According to the SEC's complaint, between 2015 and 2017 Nerren raised approximately $1.4 million through Sapient Fund II, LLC and Vintage Place Fund, LP. The complaint alleges that Nerren diverted $450,000 of those funds to an unrelated real estate project he was developing, without disclosure to investors and in contravention of the disclosures in the offering materials. According to the complaint, although Nerren began repaying the diverted funds, the project experienced financial difficulties and Nerren was unable to pay the project's bills because of the diversion of funds. As alleged, the McKinney project was ultimately foreclosed, resulting in a total loss for the investors. The SEC's complaint, filed in federal district court for the Eastern District of Texas, charges Nerren with violating the antifraud provisions of Sections 17(a)(2) and (3) of the Securities Act of 1933. Without admitting or denying the SEC's allegations, Nerren agreed to be permanently enjoined from violating the charged provisions and to pay a $37,500 civil penalty. The settlement is subject to court approval. The SEC's investigation was conducted by Derek Kleinmann and Carol Stumbaugh, and supervised by Barbara L. Gunn and Eric R. Werner of the SEC's Fort Worth Regional Office. The SEC's litigation is being conducted by Matthew Gulde, and supervised by B. David Fraser. SEC Complaint

Related documents (1)