Securities Commissioner pursues civil fraud case against Aurora lawyer for securities fraud
DENVER — Colorado Securities Commissioner Gerald Rome filed civil fraud charges against William Bronchick of Aurora as well as his companies LegalWiz, Bronchick & Associates, P.C., and Bronchick Consulting Group, LLC for alleged violations of the licensing and anti-fraud provisions of the Colorado Securities Act. Bronchick, an attorney, hosts a web site called LegalWiz, which promotes the services he provides to investors in the form of coaching, seminars, podcasts, videos, and books on real estate investing.
According to the complaint filed by the Colorado Attorney General’s Office, investigators with the Division of Securities, part of the Department of Regulatory Agencies (DORA), determined that Bronchick made a variety of suspected omissions and misstatements to investors in one of his real estate enterprises. Bronchick allegedly represented to clients that the company, Valois Dynasty, of which he was the control person, had purchased three apartment buildings. In truth, the company had never acquired title to any properties. The complaint alleges that Bronchick also stated, “returns are amazing” on investments when in fact the venture was doomed to fail. Additionally, the allegations include the fact that Bronchick failed to mention to investors that their funds would go toward paying hundreds of thousands of dollars in overdue bills on the apartment buildings.
All in all, within a span of little more than a year, the Defendants raised approximately $785,000 from eight investors. The complaint alleges that Bronchick specifically targeted investors in or close to retirement, and recommended investing money from IRA accounts that most retirees utilize for living expenses. Some of the investors were students of the real estate investment services he provided investors. The Commissioner’s complaint also alleges that when Bronchick became aware that the properties in which his company held a 24 percent interest were failing, he sold off his interests long before foreclosure whereas his investors were left to lose everything.
“We allege that Mr. Bronchick held himself out to be a mentor and friend to his legal clients, and brought them into a risky venture which created conflicts of interest for him, and a losing investment enterprise for those who handed over their funds,” stated Commissioner Rome. “We are seeking, therefore, to have those funds reimbursed, and for Mr. Bronchick and his company to be barred from the securities industry in Colorado.”