Ryan Bowers, Formerly of Enviso Capital, Named in Multiple Customer Disputes Alleging Misrepresentation

Bowers was barred by the SEC in July 2017.

The Sonn Law Group is investigating allegations that Ryan Bowers committed misconduct. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Ryan Bowers (CRD#: 3237368) was previously registered as a broker with WFG Investments from 2009 until 2013. Previously, Bowers was a broker with Securities America from 2002 until 2007.

In July 2013, the SEC initiated public administrative and cease-and-desist proceedings against Bowers. In the administrative release, the SEC stated that between 2012 and 2014, Enviso Capital and two of its principals, Bowers and another individual, materially overstated the value of two private funds advised by Enviso Capital in financial statements sent to fund investors. In one case, Enviso Capital allegedly overvalued the fund’s primary asset – private company Bluefin Renewable Energy, LLC (“Bluefin”), by failing to use reasonable assumptions regarding projected revenues.

In the other, Enviso Capital failed to properly value a loan despite the fact that it was probable that the full outstanding amount would never be collected. In addition, due to the problems with the Bluefin valuation and the failure to properly value a loan from one of the private funds to the other, the funds’ financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), which resulted in Enviso Capital violating the custody rule. Moreover, Enviso Capital made several misrepresentations regarding Bluefin’s progress toward developing a renewable energy project in management discussion and analyses (“MD&As”) sent to fund investors. 

The other individual, a Principal of Enviso Capital, had a primary role in formulating the valuations and disclosures, which were then approved by Bowers, Enviso Capital’s Managing Principal. Enviso Capital also falsely disclaimed having custody of client assets in Form ADV filings that Bowers executed. 

The SEC’s statement ended by stating that Bowers failed to timely conduct annual reviews of Enviso Capital’s compliance program. As a result of the conduct described above, Bowers willfully violated Sections 206(2), 206(4), and 207 of the Advisers Act and Rule 206(4)-8 promulgated thereunder. Based on the alleged violations, Bowers was barred from associating with a broker, dealer, investment adviser, municipal securities dealer, transfer agent, or NRSRO for an indefinite period, with the option to reapply to the SEC after a period of two years. Bowers was also fined $50,000.00.

Bowers has four other disclosures on his BrokerCheck report. 

July 2017 Customer Dispute

• Status: Pending
• Allegations: “Claimants allege misrepresentation and omissions related to recommendations on investments and the suitability of those investments.”
• Damage Amount Requested: $555,000.00
  

March 2016 Customer Dispute

• Status: Pending
• Allegations: “Claimants allege misrepresentation and omissions related to recommendations on investments and the suitability of those investments.”
• Settlement Amount: $275,000.00

September 2015 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Bowers consented to the sanctions and to the entry of findings that he was aware of but failed to provide updated valuation information regarding private equity funds to the firm that was the custodian of investors’ holdings in those funds. As a result, the custodian produced account statements falsely representing that investors’ positions were unchanged, when in fact their positions had declined. Specifically, Bowers was the CEO of a registered investment advisor that served as the investment advisor for the private equity funds. Bowers was responsible for the management of these funds. The funds raised approximately $22 million in cash and securities from investors. The investment advisor reported periodic account values to investors in the funds in two ways, through quarterly reports generated by a third-party company that served as the custodian of funds’ investments, and through monthly reports generated by a third-party company that served as the custodian of the investors’ investments. One of the registered investment advisor’s responsibilities was to timely transmit updated valuations of the funds to the third-party company that served as the custodian of investors’ investments, including their holdings in these particular funds. As the CEO of the investment advisor, Bowers was responsible for ensuring that this task was completed in a timely fashion. As a result of the failure to provide the custodian with updated valuation information, investors who were reviewing only their monthly account statements from the custodian and not their quarterly account statements would have been unaware of significant declines in the values of both funds.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
• Amount: $25,000.00
• Sanctions: Suspension
• Registration Capacities Affected: All Capacities
• Duration: Five Months
• Start Date: 9/21/2015
• End Date: 2/20/2016

February 2007 Employment Separation After Allegations

• Firm Name: Securities America
• Termination Type: Discharged
• Allegations: Representative was under investigation by the firm. In 2005 & 2006, he acted as a solicitor for several private placements without notification and approval from the broker/dealer. Remuneration in the form of warrants was received. Representative was found to have sold away from the broker/dealer.
• Broker Comment: I resigned from the broker/dealer, in writing, on 1/3/07 before the alleged termination on 2/15/07. I provided notification of the alleged activities to the broker/dealer directly and indirectly through my direct supervisor(s).

Contact Us Today

The Sonn Law Group is currently investigating allegations that Ryan Bowers committed misconduct. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.