A Twin Cities lawyer has been found liable for multiple violations of securities law.
Todd Duckson, of Prior Lake, was one of several defendants in the securities fraud lawsuit that was filed by the Securities Exchange Commission in 2010.
The Star Tribune reports that Duckson was found liable on three claims Tuesday: one of aiding and abetting, and two on securities fraud at the end of a five-week trial.
The real estate lending fund is believed to have attracted an estimated 450 investors, including some elderly Minnesotans. First called Hennessey Financial Monthly Income Fund then Capital Solutions Monthly Income Fund it was based in Minnesota and raised about $21.6 million dollars during the time of the fraud.
Three other men targeted in the SEC lawsuit settled prior to court.
A hearing on civil remedies has not been scheduled yet, but Duckson likely will face civil penalties, an order to return gains to investors and could be barred from serving as an officer or director of a public company. Federal regulators also plan to ask that Duckson not be allowed to act as a lawyer for a public company in which he would assist with any public filings.
The SEC claims that Duckson misled investors about the fund's health when the its investments began tanking during the real estate crash.
Duckson served as the fund's counsel while working as a partner in the Minneapolis office of the national law firm Hinshaw & Culbertson. He left in 2009 to begin running the fund.