Based on a recent SEC enforcement action, from approximately 2005 through 2011, the Burton Douglas Morriss, through several private equity funds and fund management companies he controlled, allegedly fraudulently transferred approximately $9.1 million dollars of investor funds to himself. Burton Douglas Morriss’ companies are believed to have disguised the transfers as loans without the knowledge or consent of investors.
In addition, Morriss and the management company he controlled allegedly came up with a scheme to recruit new investors to purchase membership interests in one of the private equity funds, MIC VII, LLC. Effectively, Morriss is believed to have used the $2.5 Million in investor funds to satisfy a portion of a personal loan.
Unbeknownst to investors, Morriss allegedly misappropriated more than $9 Million from the investment entities for his personal use. As early as 2005 Morriss was taking funds from Acartha Group, while at the same time lending money to it. By the summer of 2009, Morriss is believed to have borrowed more money than he had advanced to Acartha Group and other investment entities. By the end of 2009 Morriss and Morriss Holdings allegedly owed Acartha Group, MIC VII, ATP, and Gryphon Investments approximately $2 million dollars.
The SEC has alleged that Burton Morriss, Acartha Group, MIC VII, ATP, and Gryphon Investments have defrauded investors by failing to disclose that Morriss would or could use investor proceeds for personal use.
Eccleston law represents individual and institutional investors nationwide to recover their investment losses caused by 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 losses with Burton Douglas Morriss or any of his associated entities, please contact one of our attorneys at 312-332-0000 to discuss your recovery options.
FinancialCounsel.com, hosted by James J. Eccleston, is a companion website to this blog, along with EcclestonLaw.com. It contains complementary material of general interest to investors and financial services professionals. Investors will find material on securities arbitration to recover investment losses; industry and financial markets intelligence; and strategies for estate planning. Professionals have access to material on broker/adviser registration, regulation, compliance and disciplinary proceedings; industry and financial markets intelligence; strategies for estate planning; and broker/adviser employment litigation and injunctions, including defamation and non-competition/solicitation issues. 
