Credit Nation Capital, LLC services auto loans and life settlements. The company was formerly known as Credit Nation Lending Services, LLC. The company was incorporated in 2008 and is based in Woodstock, Georgia.
585 Molly Lane
Woodstock, GA 30189
Founded in 2008
Securities and Exchange Commission Makes Final Arguments Urging Court to Shut Jim Torchia's Viatical Business
Feb 16 16
The Securities and Exchange Commission argued in its latest court filing on the case that Jim Torchia's viatical business should be shut and put in the hands of a receiver because no lesser remedy will suffice. The SEC said in February 8, court papers that given Torchia's history of misappropriating company assets and his demonstrated inability to keep professional records or observe corporate formalities, a receiver is needed to prevent further depletion of assets that can be used to ameliorate some of the victims' losses. Following a January 7 and January 8 evidentiary hearing on the SEC's bid to shut Torchia's Credit Nation Capital LLC company, both sides were allowed to file further briefs on February 1 and February 8. The case now is in the hands of Judge William Duffey Jr. of the U.S. District Court in Atlanta for a decision. The SEC is seeking a preliminary injunction, asset freeze, appointment of a receiver and other relief against Torchia's five Woodstock, Ga., companies. The SEC accused Torchia of running a Ponzi scheme in a November 10 lawsuit, which was filed after a two-year investigation. The SEC says that Credit Nation's own forensic accountant provided information showing a failing and insolvent business. The SEC announced that Torchia represented to investors that his promissory notes were 100% asset backed, although he had no trained accountants keeping the books, never hired an outside auditor and knew that the business lost money every year. The SEC also said that either Torchia knew that his company didn't have enough assets to support its liabilities or he didn't care enough to take even a cursory look at its assets. The SEC said Torchia was unable to coherently explain why he sells fractional interests in policies for less than the expected future premiums.
Securities and Exchange Commission Announces Emergency Action to Halt Ongoing Investment Fraud Involving Promissory Notes and Life Settlement Contracts against James Torchia Credit Nation Capital, LLC, Credit Nation Acceptance, LLC ,Credit Nation Auto Sales, LLC, American Motor Credit, LLC and Spaghetti Junction, LLC
Dec 1 15
The Securities and Exchange Commission announced the entry of a consent order halting an alleged ongoing investment fraud by James Torchia and various related entities involving the sale of promissory notes and life settlement contracts. On November 10, 2015, the SEC filed an emergency civil action in federal court in Atlanta against Torchia, Credit Nation Capital, LLC, Credit Nation Acceptance, LLC, Credit Nation Auto Sales, LLC, American Motor Credit, LLC, and Spaghetti Junction, LLC. The Commission's complaint alleges that since 2009, Torchia, through CN Capital, has raised tens of millions of dollars from investors who purchased unregistered promissory notes, most of which promised a 9% return. The complaint further alleges that CN Capital touts the safety of the promissory notes, describing them to investors as 100% asset backed and backed by hard assets dollar for dollar. In reality, according to the complaint, CN Capital has generated substantial losses each year since at least 2011 and is insolvent. The Commission contends that contrary to representations made to investors portraying the notes as a secure investment capable of generating reliable investment returns, CN Capital basically operates as an ongoing Ponzi scheme through which the promised investment returns are paid using new investor money. The complaint alleges that neither CN Capital's multi-million dollar per year operating losses nor its massive insolvency has ever been disclosed to investors. The complaint also alleges that CN Acceptance sells unregistered fractional interests in life settlement contracts ("LS Interests") to investors and that CN Acceptance promises to pay the policy premiums using a portion of the purchase price. But in practice, according to the complaint, Torchia disregards corporate formalities and commingles CN Acceptance's funds with those of CN Capital, such that the LS Interests are now threatened by CN Capital's Insolvency. The complaint further alleges that Torchia has transferred millions of dollars to entities he controls to support his and his family's other businesses and to pay his personal expenses. According to the complaint, CN Capital and CN Acceptance, on average, have raised in excess of $2 million per month through the sale of notes and LS Interests in the first six months of 2015.