CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson revealed today that federal charges were brought against Jon Patrick Kubler, 52, of Redondo Beach, California, for allegedly masterminding a $4 million investment fraud operation that preyed upon elderly and at-risk individuals.
Jon Patrick Kubler and five companies he controls allegedly defrauded at least 56 investors of approximately $5.6 million in a scheme that purported to invest their money in real estate opportunities, a Securities and Exchange Commission lawsuit says.
Kubler and his companies have allegedly run the scheme since 2016, during which time they have only invested $227,500 and fraudulently used the remaining funds to make payments to earlier investors from those who came later, or to pay his personal expenses.
The companies also misled its investors by hiding their lack of assets from them before the new investments were exhausted.
James C. Barnacle, Jr., Acting Special Agent in Charge of the FBI in North Carolina, supports U.S. Attorney Ferguson in announcing today’s news.
According to claims in the criminal indictment, from December 2017 to April 2023, Kubler deceived around 30 investors, amassing over $4 million through a fraudulent investment scheme.
Jon Patrick Kubler Court Case
Despite lacking a license as an investment consultant, Kubler allegedly offered investment planning and management services to less savvy victims, particularly the elderly, and those who received settlements or life insurance proceeds. Throughout the scheme, Kubler is said to have made false and misleading statements to victims, hidden and omitted critical information, and expressed deceptive half-truths to persuade victims to invest in commercial real estate through his owned companies, including Aksarben Evolution, LLC and Green Saddle, LLC.
To perpetuate the scheme and convince investors of the profitability of their investments, Kubler allegedly issued Ponzi-style payments to victims, utilizing funds from new investors to pay existing ones, falsely claiming the distributions were profits from successful investments rather than money sourced from new victims Kubler had approached. It is additionally alleged that Kubler misappropriated a portion of the investors’ funds for personal expenditures and cash withdrawals, among other things.
According to the indictment’s claims, in 2022, an investor received correspondence from the U.S. Securities and Exchange Commission (SEC) concerning its investigation into alleged securities fraud by Kubler. To obscure the scheme and downplay the fact that he was under SEC scrutiny, Kubler misled the victim, advising her that she need not respond to the SEC and that receiving a letter from the SEC was commonplace after receiving a significant settlement from a third party, as the victim had done.
Kubler faces charges of securities fraud and transactional money laundering. If found guilty, he could be sentenced to a maximum of 20 years in prison for the securities fraud charge and 10 years for the money laundering charge. A federal district court judge will determine any sentence imposed after reviewing the U.S. Sentencing Guidelines and other statutory considerations.
U.S. Attorney Ferguson expressed gratitude to the FBI in Charlotte for their investigation of the case.
In addition to the criminal charges, in September 2023, the SEC revealed that it secured a temporary asset freeze, restraining order, and other emergency measures in the U.S. District Court in Nebraska against Kubler and several entities under his direction, for allegedly engaging in a prolonged Ponzi scheme that misappropriated and abused investors’ funds. A final ruling was issued on January 22, 2025, whereby Kubler consented to a permanent injunction against violating securities laws and to pay disgorgement and civil penalties.
Special Assistant U.S. Attorney Eric Frick and Assistant U.S. Attorney Graham Billings are overseeing the prosecution.
The allegations in the indictment are not proven facts, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The court case is here in PDF
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