SEC Charges Mexico-Based Aras Investment Group and Individuals for Fraudulently Raising $15 Million From Retail Investors

The SEC today charged Mexico-based company Aras Investment Business Group S.A.P.I. de C.V., its CEO Armando Gutierrez Rosas, and four individuals for allegedly running a fraudulent Ponzi scheme where they fraudulently raised over $15 million from more than 450 retail U.S. investors, primarily members of the Mexican American community. The complaint alleges that instead of using the money for investment purposes, Gutierrez was using investor funds to pay for his personal expenses such as a $2.5 million mansion in Texas. Along with Gutierrez, the SEC also charged Efren Quiroz, Luis Quiroz, Maria Tolentino, and Diayanira Rendon for their involvement in the fraud. The SEC’s suit seeks permanent injunctions, civil penalties, and disgorgement with prejudgment interest. Four of the individuals charged – Efren and Luis Quiroz, Tolentino, and Rendon – consented to the entry of judgments against them including full injunctive relief against potential future violations, disgorgement, and penalties to be determined by the court upon motion by the Commission. The settlements are subject to court approval, while the Quiroz brothers additionally consented to settled Commission orders barring each of them from association with a registered entity or participation in a penny stock offering. The SEC’s investigation into this case was conducted by Stephen T. Kaiser, with assistance from Margaret Vizzi and was supervised by Tim England, Melissa Armstrong, and SEC Associate Director Melissa R. Hodgman.