April 30, 2017 8:05 PM ET

Diversified Financial Services

Company Overview of Credit Nation Capital, LLC

Company Overview

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

United States

Founded in 2008

Phone:

770-516-1999

Key Executives for Credit Nation Capital, LLC

Chief Executive Officer and Chief Financial Officer
Compensation as of Fiscal Year 2016.

Credit Nation Capital, LLC Key Developments

Securities and Exchange Commission Makes Final Arguments Urging Court to Shut Jim Torchia's Viatical Business

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

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.

Similar Private Companies By Industry

Company Name Region
1199 S.E.I.U. Federal Credit Union United States
121 Financial Credit Union United States
123 LumpSum Holdings, LLC United States
12five Capital, LLC United States
167th TFR Federal Credit Union United States

Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
August 5, 2016
Credit Nation Capital LLC, Remaining Auto Loan Portfolio
 

The information and data displayed in this profile are created and managed by S&P Global Market Intelligence, a division of S&P Global. Bloomberg.com does not create or control the content. For inquiries, please contact S&P Global Market Intelligence directly by clicking here.

Stock Quotes

Market data is delayed at least 15 minutes.

Company Lookup

Most Searched Private Companies

Company Name Geographic Region
Lawyers Committee for Civil Rights Under Law United States
NYC2012, Inc. United States
Bertelsmann AG Europe
Rush University United States
The Advertising Council, Inc. United States

Sponsored Financial Commentaries

Sponsored Links

Request Profile Update

Only a company representative may request an update for the company profile. Documentation will be required.

To contact Credit Nation Capital, LLC, please visit --. Company data is provided by S&P Global Market Intelligence. Please use this form to report any data issues.

Please enter your information in the following field(s):
Update Needed*

All data changes require verification from public sources. Please include the correct value or values and a source where we can verify.

Your requested update has been submitted

Our data partners will research the update request and update the information on this page if necessary. Research and follow-up could take several weeks. If you have questions, you can contact them at bwwebmaster@businessweek.com.