Banking Commissioner Orders Norwalk CPA and Associated Firm to Reimburse
Investors at Least $7 Million
November 26, 2014
Banking Commissioner Howard F. Pitkin issued an order to cease and desist against Ulysses Partners, LLC and James E. Neilsen, of Norwalk, Connecticut, for violating state securities law. The November 13, 2014 order also fines the firm and Neilsen $25,000, jointly and severally, and requires that they reimburse each of the investors the amount of funds collected plus interest, which totals at least $7,000,000.
“This is a sad story of trust and betrayal,” stated Commissioner Pitkin. “These victims trusted Neilsen as their personal and business accountant, and invested in Ulysses based on his reassurances that they would surely become millionaires. The company, however, never made a profit, and those investors lost millions due to his fraudulent activities. I commend the victims who bravely came forward and filed their complaints. If you think you may be the victim of an investment scam, please contact the Department of Banking right away.”
The order against Ulysses Partners, LLC and James E. Neilsen follows an investigation by the Department of Banking’s Securities Division and an administrative hearing on the matter. After reviewing the evidence, the Commissioner concluded that between 2005 and 2012, both Ulysses Partners, LLC and James E. Neilsen had violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered securities in the form of promissory notes, subscription agreements and investment agreements to 33 persons who invested approximately $7,438,341 in Ulysses Partners, LLC. The Commissioner also determined that the respondents, through Neilsen, violated the antifraud provisions of the Act by misrepresenting the anticipated rate of return on the investments and omitting any type of written disclosure or discussion of risks. Mr. Neilsen works as an accountant and tax preparer in Connecticut and the majority of victims were his accounting clients.
Despite statutory authorization to order fines of up to $100,000 per violation, the Commissioner fined the respondents $25,000 in order to make more money available for reimbursement.
A copy of the Order may be found on the Department of Banking’s website.