UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO: 24-80980-CV-MIDDLEBROOKS
SECURITIES AND EXCHANGE COMMISSION,
v.
WELLS REAL ESTATE INVESTMENT, LLC, et al.
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On August 12, 2024, the Securities and Exchange Commission (the “SEC”) filed a complaint and sought emergency relief, including an Ex Parte Motion for Temporary Restraining Order to Freeze Assets and an Ex Parte Motion for Appointment of Receiver, against the defendants in the above-identified action. On August 14, 2024,the Honorable Donald M. Middlebrooks, United States District Judge for the Southern District of Florida, granted the SEC’s Emergency Ex Parte Motion for Appointment of Receiver and issued an order appointing Andres Rivero as Receiver over Wells Real Estate Investment, LLC (“Wells”), and the Relief Defendants (collectively, “Receivership Entities”).
The SEC’s complaint alleges that the defendants misused millions of dollars of investor funds, which the defendants represented would be used to invest in and improve real estate. The complaint claims that the defendants made material misrepresentations and omitted critical facts regarding the value and performance of their investments, violating federal securities laws. The SEC alleges that, in reality, investor funds were used to purchase real property, which are heavily financed through mortgages and generate insufficient income to pay promised returns to investors. Defendants also allegedly misused investor proceeds by, among other things, diverting those funds to dozens of brokerage accounts and engaging in highly speculative futures options trading, losing millions in investor funds.
The SEC’s complaint, the Order Appointing Receiver, and other relevant court filings are available for review under the Court Documents tab of this website. Additional information is also available under the Receiver’s Letters and Reports tab.
For any questions concerning the Receivership Estate of Wells Real Estate Investment, LLC, please contact the Receiver’s office by email at wellsreceiver@riveromestre.com or by telephone at (305) 445-2500.