Corporate & Securities Law

The California Department of Corporations has obtained an injunction, an asset freeze, and the appointment of a receiver against CanAm Capital Corporation and the individuals operating it for alleged securities fraud violations and diversion of investor funds.

The individuals believed to have orchestrated or been involved in this scheme are as follows:

1. Jay Jordan Barnhardt (aka ?Jay J. Barnhardt? or ?J.J. Barnhardt?), the president of CanAm.
2. Aaron Kane Barnhardt, vice president of CanAm and the co-owner and registered representative of Santa Rita Partners, Inc.  Santa Rita Partners, Inc. is a broker-dealer that was registered with FINRA. 
3. Kelly Keith Morgan, vice president of client relations for CanAm and registered representative of Santa Rita Partners.
4. Steve Heraty, president and co-owner of Santa Rita Partners. 

In its civil complaint, the Department alleging that CanAm raised at least $15 million from at least 337 investors (more than 182 of which were California residents) based on untrue statements and omissions of fact. 

The defendants offered and sold securities in the form of membership interests in the following limited liability companies by general solicitation and ?cold calling?:

1. Premier Equity Fund, LLC
2. Premier Equity Fund II, LLC
3. Premier Equity Fund III, LLC
4. Premier Equity Fund IV, LLC

CanAm acted as the manager of these funds, which purported to raise money to provide financing for select startups and early stage companies. 

On February 11, 2009, the Department issued a Desist and Refrain Order against the following individuals and entities, which prohibited them from offering and selling securities:

1. CDNX Fund, LLC;
2. TSC Venture Fund, LLC;
3. Northern Equities, LLC;
4. Jay Barnhardt;
5. Kelly Morgan; and
6. Aaron Barnhardt.

Notwithstanding this Order, the Department alleged that from April 2009 through at least December 2009, CanAm, Jay Barnhardt and Kelly Morgan continued to offer and sell securities in violation of the Order. The Department further alleged that that from March 2010 to present, Aaron Barnhardt and Kelly Morgan continued to contact CanAm investors in violation of the Order, soliciting business for Santa Rita Partners. 

The defendants are believed to have depleted at least $1 million of investor funds following a subpoena from the Department, along with another $1.5 million in investor funds for personal use. 

Eccleston Law represents individual and institutional investors to recover their investment losses caused by securities and investment fraud. Our attorneys also help victims of Ponzi schemes pursue recovery by submitting claims with receiverships established by the SEC and by assisting victims with the filing of a Theft Loss Tax Deduction with the IRS.

If you have lost money investing in CanAm or with Jay Barnhardt, Aaron Barnhardt or Kelly Morgan, or have information related to this case, please contact Jim Eccleston at the Eccleston Law Offices at 312-332-0000.