SEC Charges N.H. Resident With Multimillion Dollar Real Estate Investment Fraud
The U.S. Securities and Exchange Commission charged Manchester, N.H., resident Robynne Alexander with defrauding investors through real estate investment schemes resulting in investor losses of at least $3 million.
According to the SEC’s complaint, from 2018 through 2024, 63-year-old Alexander solicited investors to buy securities in real estate investment projects for multiple properties in New Hampshire and Massachusetts, that she represented she would buy, renovate and sell for a profit. But Alexander defrauded investors by instead using a substantial amount of investor money to pay fictitious investment returns to certain favored investors, to repay some investors and lenders in unrelated projects, and as her primary means of paying her personal expenses.
Alexander’s alleged schemes were expansive. As one example, she formed HB9G, LLC on Jan. 17, 2020, purportedly to obtain investments to purchase, renovate, stabilize, and sell a multifamily property located at 9 G St. in Hampton, N.H. Between Jan. 16, 2020, and Jan. 28, 2020, Alexander received a total of $273,000 from three investors in exchange for membership interests in HB9G.
Despite statements to investors that she would renovate and sell the property, Alexander purportedly and improperly used approximately $50,000 of the $273,000 she raised for expenses related to other real estate investments and personal expenses in February 2020.
In response to frequent requests for updates from investors, Alexander sent an email update to investors on April 3, 2023, more than three years after the initial investments. Alexander told the investors that the property was in a “deteriorated state” and that it needed “approximately $100K in renovations to bring it where it needs to be for high-season rentals.” Even though Alexander told investors she would renovate and sell the property, the property was not renovated and went into foreclosure in November 2023. Investors were not notified of the foreclosure which rendered their investments worthless.
The SEC’s complaint, filed in the United States District Court for the District of New Hampshire, charges Alexander with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder.
Alexander has consented to the entry of an order permanently enjoining her from violating the charged provisions; enjoining her from participating in the issuance, purchase, offer, or sale of any security, and from engaging in activities for the purpose of inducing or attempting to induce the purchase or sale of any security, except for her own account; permanently barring her from serving as an officer or director of any public company; and providing that the court to order disgorgement plus prejudgment interest and a civil monetary penalty, in amounts to be determined by the court.
In a parallel action, the U.S. Attorney’s Office for the District of New Hampshire filed criminal charges against Alexander. The New Hampshire Bureau of Securities Regulation also filed administrative charges against Alexander.
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