Duluth man accused in investment scheme

A Duluth man and a financial company that claimed to have assets “valued in the trillions” of dollars have been accused by federal regulators of operating an investment scheme.

Robert Fowler, 51, and U.S. Capital Funding II Series Trust 1 Inc. are accused of misappropriating investor cash, according to a civil complaint filed Thursday in U.S. District Court in Atlanta. Attempts to reach Fowler were not immediately successful.

The Securities and Exchange Commission alleges Fowler offered to help investors obtain bank loans for their businesses. He solicited down payments and fees in exchange for guarantees of bank loans, raising at least $350,000, the suit says.

Investors were told Fowler or U.S. Capital would invest at least some of the purported loan amount, and the defendants and investors would split the profits, the suit said.

But the suit alleges that Fowler used investors’ money to pay business and personal expenses.

He is also accused of telling investors and would-be clients his operations were “blessed” by the SEC.

Fowler was the subject of a prior SEC inquiry and received a letter last year informing him the probe was closed, the suit said. But the SEC said the letter also stated it “must in no way be construed as indicating that the party has been exonerated or that no action” could be taken in the future.

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