Litigation Releases (Anthony Lotito, et al.,)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26118 / September 23, 2024

Securities and Exchange Commission v.

Anthony Lotito, et al.,

No. 3:24-cv-09348 (D.N.J. filed September 20, 2024).

SEC Charges Two New Jersey-Based Distributors of Sale Leaseback Program with Fraud

On September 20, 2024, the Securities and Exchange Commission charged Anthony Lotito, Joseph Hagan and their respective entities, Revolution Leasing & Administration LLC and ScryptMob II LLC, for their fraudulent offer and sale of unregistered securities, and for misappropriating money from investors. The complaint also charges Hagan and Lotito with acting as unregistered brokers in connection with the sales of these securities.

The SEC's complaint alleges that through their entities, Lotito raised more than $2 million and Hagan raised more than $3 million from retail investors, many of whom were elderly and some of whom invested through their individual retirement accounts. According to the complaint, the defendants sold interests in a sale leaseback program known as the Apex Program and made material misrepresentations and omissions about the program, including its operating status and the amount of lease payments that investors would receive, even after they became aware that the program had stopped accepting new investments. The complaint further alleges that Hagan and Lotito misappropriated investor funds to pay for personal expenses. According to the complaint, interests in the program were not registered with the Commission.

The SEC's complaint, filed in the United States District Court for the District of New Jersey, charges all defendants with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and defendants Lotito and Hagan with violations of Section 15(a) of the Exchange Act. The SEC seeks permanent and conduct-based injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil money penalties against all defendants, as well as officer and director bars against Lotito and Hagan.

The SEC's investigation was conducted by Craig Welter, Ariel Atlas, Christopher Ferrante, Diego Brucculeri and Alison Conn of the New York Regional Office and supervised by Thomas P. Smith, Jr. The litigation will be led by Chevon Walker and Ms. Atlas and supervised by Alexander Vasilescu.

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