Joshua Burrell Sentenced to 48 Months in Prison for Securities Fraud

Joshua Burrell, a 39-year-old New York resident, has been sentenced to 48 months in prison for committing securities fraud in connection with the operation of a New York-based investment firm, Activated Capital, LLC.

According to the United States Attorney for the Southern District of New York, Damian Williams, Burrell pleaded guilty to raising millions of dollars for Activated Capital’s Opportunity Zone Funds using fraudulent misrepresentations. In reality, Burrell caused the Activated Tax Advantaged Opportunity Fund, LLC and Activated Capital Opportunity Zone Fund II, LLC to pay putative distributions in amounts greater than the funds’ net income, totaling approximately $470,000.

The scheme, which spanned from 2019 to 2021, was designed to attract additional investment capital for the Opportunity Zone Funds. To achieve this, Burrell fabricated documents to make it appear that the Activated OZ Funds were more successful, owned more properties, and were in better financial condition than was actually the case.

The investigation revealed that Burrell used investor money to pay distributions, effectively operating a Ponzi scheme. The scheme was uncovered when an investment bank, Company-1, asked Burrell for backing to show current fund proceeds and acquisitions made. Burrell responded with fake bank statements and other fabricated documents to make it appear that the Activated OZ Funds were more successful than they actually were.

The defendant was also sentenced to a one-year term of supervised release and ordered to pay restitution to his victims in the amount of $5,763,420 and to pay forfeiture in the amount of $107,688.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Daniel Loss and Alex Rossmiller are in charge of the prosecution. The investigative work of the United States Postal Inspection Service and assistance from the U.S. Securities and Exchange Commission were also praised in the announcement.

Key Facts:

• Defendant: Joshua Burrell
• Criminal Charge: Securities Fraud
• City and State: New York
• Date: Not specified
• Sentence: 48 months in prison, one-year term of supervised release, $5,763,420 in restitution, and $107,688 in forfeiture

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