Today, after a five-day trial, a jury in the United States District Court for the District of Colorado found defendants R. Brian Watson and his company, Northstar Commercial Partners, liable for intentional securities fraud.
As shown by the evidence at trial, Watson and Northstar defrauded investors in 11 different offerings over the course of about 36 months. Defendants told investors that Watson “co-invested” in every real estate offering by investing his personal funds in Northstar-sponsored real estate projects alongside investors who were also investing in common equity. The statements were false and misleading because Watson did not co-invest his personal funds as promised. These repeated misstatements over time facilitated a scheme and course of business that defrauded investors.
Statement of SEC Enforcement Director Margaret A. Ryan:
“We are pleased with the jury’s verdict holding Mr. Watson and Northstar liable for fraud for making material misrepresentations to investors in multiple real estate projects. This case demonstrates the SEC’s continued commitment to protecting investors and holding accountable those who seek to mislead and defraud them. I thank the trial team for its hard work and professionalism.”
