The Securities and Exchange Commission today filed charges against James Robinson and David Kennedy in connection with an investment scheme that defrauded investors out of more than $57 million. The SEC previously charged the principal of the scheme and associated entities with securities fraud.
The SEC alleges that between approximately September 2015 and July 2016, Robinson and Kennedy raised over $7.5 million from over 100 investors in the fraudulent scheme. The complaint further asserts that Robinson and Kennedy recruited a network of sales agents to sell investments in co-working spaces operated by Bar Works, Inc. and Bar Works 7th Avenue, Inc. using false and misleading offering materials. According to the SEC’s complaint, the materials falsely touted the background of Bar Works’ purported CEO, “Jonathan Black,” and omitted any mention of Renwick Haddow, the actual individual controlling the entities. According to the complaint, Robinson and Kennedy knew that “Black” was fictitious, that Haddow secretly ran the Bar Works companies, and that Haddow had previously been charged by the United Kingdom’s securities regulator for an unrelated investment scheme. In return for their roles in the Bar Works scheme, Robinson and Kennedy, through a company they jointly owned called United Property Group, received at least $2 million from Haddow and the Bar Works companies.
Source: SEC Charges Additional Parties in Fraudulent Office Space Investment Scheme
