November 19, 2024
Misappropriation of Funds
On November 7, 2024, the Securities and Exchange Commission (SEC) issued an order barring Dusan Varga, the Chairman, CEO, and managing member of Pannon Investment Advisors LLC, from association with any investment adviser, broker, or dealer. The decision followed a series of fraudulent activities tied to the misuse of investor funds and misrepresentations about investment opportunities.
According to the SEC, Varga and Pannon raised at least $1.6 million from 20 investors between May 2020 and January 2024 under false pretenses. The funds were intended for the Pannon Risk-Managed Income Fund but were instead used contrary to stated policies, including making Ponzi-like payments to investors. The SEC’s complaint highlighted that Varga falsely claimed a background as a registered representative and misrepresented the profitability and risks associated with the fund.
The investigation further revealed that Varga and Pannon engaged in fraudulent and deceitful practices by:
On November 1, 2024, a judgment was entered against Varga, permanently enjoining him from further violations of federal securities laws. He has been barred from association with any regulated financial entities, and any potential reentry into the industry will require compliance with stringent conditions, including restitution and penalties.
If you or someone you know invested in the Pannon Risk-Managed Income Fund or through Dusan Varga, you may have been affected by his fraudulent conduct. At ChapmanAlbin, we specialize in helping investors recover losses from financial misconduct. Contact us today to discuss your situation and explore your options.
"*" indicates required fields
