Litigation Releases (Bernardo Mendia-Alcaraz and Toltec Capital LLC)

Bernardo Mendia-Alcaraz and Toltec Capital LLC

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26085 / August 28, 2024

Securities and Exchange Commission v. Bernardo Mendia-Alcaraz and Toltec Capital LLC, No. 4:24-cv-05823 (N.D. Cal. filed Aug. 23, 2024)

SEC Charges Private Equity Firm and Managing Partner with Offering Fraud

The Securities and Exchange Commission today announced charges against Bernardo Mendia-Alcaraz and his private equity firm, Toltec Capital LLC, for conducting fraudulent and unregistered securities offerings.

According to the SEC's complaint, from at least December 2019 to September 2023, Mendia-Alcaraz, on behalf of Toltec Capital, raised approximately $3.3 million from investors by promising to invest their money in low-risk private funds that Toltec Capital managed, and guaranteeing a return of investor capital, among other assurances. Instead, the SEC alleges, Mendia-Alcaraz used investor funds to make Ponzi-like payments to other investors and unauthorized payments to himself for personal expenses and luxury items.

The SEC's complaint, filed in the United States District Court for the Northern District of California, charges Mendia-Alcaraz and Toltec Capital with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both defendants, and a conduct-based injunction and officer-and-director bar against Mendia-Alcaraz.

The SEC's investigation was conducted by Daniel Ball, Laura Cunningham, and Zachary Scrima, under the supervision of Melissa Robertson and Melissa Hodgman. The litigation will be led by Timothy Halloran and supervised by David Nasse.