SEC prohibits Pelham accountant from participating in securities fraud

The Securities and Exchange Commission (SEC) recently took action against a Pelham accountant, Damien Alfalla, for his involvement in a fraudulent scheme in Florida. Alfalla, 49, agreed to the sanctions imposed by the regulatory agency, as indicated in an SEC order issued on February 23.

The SEC order stated that Alfalla misrepresented information to investors, leading them to believe that their investments would generate sufficient income to cover promised dividends. The disciplinary action against Alfalla was initiated following criminal charges and a civil lawsuit launched against him.

In October 2025, Alfalla was arrested on charges of conspiracy, securities fraud, and wire fraud. Subsequently, the SEC, in a civil lawsuit, accused him and two associates of securities fraud just two days later. Alfalla had been serving as the chief financial officer of 600 Partners LLC and 777 Partners LLC, both private equity funds established by Joshua Wander and Steven Pasko in Miami.

The modus operandi of the companies involved borrowing funds to purchase legal settlements from individuals who were beneficiaries of wrongful death lawsuits, among others. Additionally, they attracted investments from individuals by promising annual dividends of 10%. Between 2021 and mid-2024, the companies managed to raise $237 million from 13 investors.

However, court documents revealed that the holding companies were already facing significant financial challenges in 2021. Funds had been misused, collateral was double-pledged, and the accounts were overdrawn by $300 million. Despite being aware or turning a blind eye to these issues, Alfalla and his co-founders, according to the SEC, misled investors by continuing to raise money using deceptive information.

Following his arrest, Alfalla pleaded guilty just ten days later. Sentencing for his criminal charges is scheduled for July 13. Moreover, in the SEC lawsuit filed on December 11, he voluntarily agreed to a lifelong ban on serving as an officer or director of any securities issuer.

While Alfalla has accepted his fate, the case is still ongoing against Wander and Pasco. Wander, who faced criminal charges as well, pleaded not guilty and was granted release on a $15 million bond. The developments in this case highlight the importance of the SEC’s role in safeguarding investors from fraudulent activities and holding perpetrators accountable for their actions.