A former funding fund adviser from Centennial and his Greenwood Village-based actual property companies have agreed to pay $9.7 million to settle accusations that he misled traders.
Tom Vukota, who now lives within the Bahamas, based Vukota Capital Administration and VCM World Asset Administration in 2010. They acquired dozens of condominium buildings and motels, together with the Miramar Residences and Stratford at Lowry buildings in Denver.
Vukota, 52, and his firms managed every property by means of a fund and offered pursuits within the funds to traders. In 2021, Vukota and VCM had 14 such funds, every of which managed one condominium constructing, in keeping with the U.S. Securities and Trade Fee.
4 of these funds owned properties in Colorado Springs — the Villages at Woodmen, the Chestnut Springs Residences, Wind River Place and Residence at Austin Bluffs — that had been among the many best-performing in VCM’s portfolio. So, in February and March 2021, Vukota determined to purchase out different traders’ shares within the funds, the SEC wrote Sept. 9.
“The buyout letters had been deceptive as a result of they negligently omitted materials details, failing to offer an entire image of the Colorado Springs funds,” in keeping with the SEC.
Vukota allegedly hid the truth that he was the individual shopping for the pursuits and that every fund was about to obtain tens of millions of {dollars} in earnings, and falsely claimed the residences had been dropping cash. Buyers reportedly weren’t proven glowing value determinations of the buildings.
“From the above course of conduct, Vukota obtained roughly $5.6 million of ill-gotten proceeds” by buying traders’ pursuits at low costs, in keeping with the SEC.
The federal company sued Vukota, Vukota Capital Administration and VCM World Administration final week for allegedly violating funding adviser and safety legal guidelines. Along with the buyout scheme, Vukota additionally induced the funds to lend cash to VCM at below-market charges with out telling traders and falsely claimed his funds had been audited, the SEC alleged.
The fee filed its lawsuit upon reaching a settlement with Vukota. Below the deal, he and his agency didn’t admit wrongdoing however agreed to pay $9.7 million to the federal government.
A lawyer for Vukota, Sam Lieberman on the Sadis agency in New York, declined to remark.
This story was initially printed by BusinessDen.
Get more real estate and business news by signing up for our weekly newsletter, On the Block.
