U.S. securities regulators filed charges against a private fund advisory firm and its founder, alleging that they defrauded investors in a long-running scheme.
The U.S. Securities and Exchange Commission (SEC) filed fraud charges against Jay Lucas, the co-founder and managing partner of Lucas Brand Equity LLC, and his company, alleging that they fraudulently raised over US$50 million from investors in three private equity funds that they advised.
According to the SEC’s complaint, between 2013 and 2025, Lucas and his firm raised money from investors through three investment funds, which they promised would invest in various startup companies in the wellness and beauty industries.
Contrary to those promises, the SEC charged that Lucas misappropriated millions of investors’ money to pay returns to earlier investors and for personal uses, including rent, alimony, and to pay for his wedding to the CEO of the funds’ largest portfolio investment, a failing skincare company Immunocologie, LLC.
The SEC alleged that investors were also misled about the valuation of the funds’ assets and their finances. In addition, the regulator alleged that Lucas and his firm failed to disclose the conflict of interest regarding the funds’ US$12.5-million investment in a company headed by Lucas’s then-girlfriend (later his wife).
In a parallel criminal action, Lucas was previously charged with securities fraud, wire fraud, investment adviser fraud and money laundering in the U.S. district for the Southern District of New York (SDNY).
The SEC’s complaint seeks permanent injunctions, disgorgement with interest and civil penalties.
None of the allegations have been proven, and he is presumed to be innocent of the criminal charges.