UPDATE: SEC Files Civil Injunctive Action Against Arthur Lin, Marcin Malarz, and Jacek Sienkiewicz for Selling Unregisered Securities; Eccleston Law Continues Investigation of $6.3 Million Scheme in Illinois

Following the filing of an SEC civil action for injunctive relief, Eccleston Law is continuing its investigation of Marcin Malarz, Arthur Lin, and Jacek Sienkiewicz and their companies Malarz Equity Investments, LLC and Malarz Equity Investment, Inc. and Invision Investment, LLC in connection with an alleged $6.3 million Ponzi scheme that was conducted starting in 2008.

Investors who have suffered losses are encouraged to contact our attorneys to discuss their recovery options.

Malarz and Lin (who was at the time a registered representative at LPL Financial Corporation), allegedly solicited investors to invest in Malarz Equity Investments, LLC and Malarz Equity Investment, Inc., which were purportedly in the business of converting apartments to condominiums, and then selling condominium units to purchasers.   Malarz and Lin represented to investors that the proceeds of the offering were to fund their business.

Malarz and Lin sold promissory notes to investors promised to pay returns of between 12-15%.  Malarz personally guaranteed the principal and interest payments to investors.  Malarz and Lin also represented to investors that the offering was also to be capped at $3,000,000, that there was no pending litigation against the company, and that Malarz was to receive no compensation for his services. 

Contrary to these representations, Malarz and Lin failed to disclose that Malarz was in fact named as a defendant in multiple civil cases at the time the notes were sold.  Malarz and Lin also exceeded the $3,000,000, selling collectively $6.3 million in notes to investors. 

And to do the detriment on the investors, Malarz converted some the money raised in the offering for his own personal use.  For example, Malarz used funds to pay for a trip to Poland, a Las Vegas excursion where he spent $3,221.84 at Caesar’s Palace and $1,332.67 for an evening out at “Pure” nightclub.  Malarz also spent over $2,700 per month to pay for his personal BMW and made payments to Aurthur’s wife in excess of $381,000.

Malarz and Lin did not disclose that the funds would be used to pay back previous investors promissory notes.  At least one investor never received any principal or interest payments, even though Malarz personally guaranteed that payments would be made.  

As for Malarz and Sienkiewicz, the pair allegedly solicited investors to invest in Invision, LLC, which was also which were purportedly in the business of converting apartments to condominiums, and then selling condominium units to purchasers. 

The promissory notes sold by Malarz and Sienkiewicz promised to pay returns of 50% on principal, with Malarz and Sienkiewicz personally guaranteeing the principal and interest payments to investors.  Malarz and Sienkiewicz also represented to investors that there was no pending litigation against the company.

These representations were false.   Malarz and Sienkiewicz failed to disclose to investors that Malarz was named as a defendant in multiple civil cases at the time the notes were sold. 

Malarz and Sienkiewicz did not disclose that the funds would be used to pay back previous investors promissory notes.  At least one investor never received any principal or interest payments, even though Malarz and Sienkiewicz personally guaranteed that payments would be made.  

Eccleston Law represents individual and institutional investors nationwide to recover their investment losses caused by securities fraud, unsuitable investment recommendations, breach of fiduciary duty, negligence or other misconduct. We have extensive experience representing investors in arbitration and litigation disputes with securities broker-dealers and investment advisory firms, and have recovered tens of millions of dollars for investors.

If you are an investor that has suffered substantial losses investing in with any of the , your losses may be recoverable through securities arbitration.  Please contact Jim Eccleston at the Eccleston Law Offices at 312-332-0000 to discuss your recovery options.