SEC v. Morbex Automation LLC, Adrian Colon, Danilo Monzon, Joshua Smith, Morbex Automation Logistics Corp., Optimistic Services Inc., Sardinas Properties, LLC, JS7 Management LLC, Alpha Consulting Firm LLC, Sandor Sardinas — U.S. Securities and Exchange Commission Litigation Release No. 26272, dated March 18, 2025.
The SEC charged Morbex Automation LLC and its members with operating a $5.4 million securities fraud. They allegedly promised high monthly returns to investors by claiming to buy and manage semi-trucks, but instead misappropriated funds and lied about contracts with major corporations.
In Plain English
Imagine someone promised you a lot of money if you gave them your savings to buy trucks for a delivery business. They said your money was safe because the trucks would be in your name and they had big clients like Walmart. But, they actually took a lot of the money for themselves, didn't really have those big clients, and didn't pay most people back as promised.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- Promising High Returns From January to November 2023, Morbex Automation LLC, led by Adrian Colon, Danilo Monzon, and Joshua Smith, offered investment contracts. They falsely promised investors monthly returns between $4,000 and $8,000 on investments of $75,000 to $100,000.
- The Trucking Scheme Defendants claimed investor funds would be used to purchase semi-trailer trucks, which would be titled in the investors' names. Morbex stated it would manage these trucks, insure them, and maintain them.
- False Corporate Contracts To bolster their claims, Morbex falsely told investors they had lucrative freight hauling contracts with major corporations like Walmart, Inc., Publix Super Markets, Inc., and Costco Wholesale Corporation.
- Misappropriation of Funds Instead of solely investing in trucks for investors, defendants misappropriated at least $930,000 of investor funds. This money was directed to personal accounts in entities controlled by Smith (Alpha Consulting Inc.) and Colon (JS7 Management LLC).
- Diversion to Related Entities An additional $1.2 million of investor funds was transferred from Morbex to other related entities: Morbex Automation Logistics Corp. (controlled by Monzon and Colon), Optimistic Services Inc. (controlled by Monzon), and Sardinas Properties, LLC (controlled by Sandor Sardinas).
- Actual Truck Purchases While Morbex did use approximately $1.1 million of investor funds to buy trucks, they purchased about fourteen trucks in Morbex's own name, not the investors'. An additional $530,000 was used for truck leases.
- Lack of Real Contracts Contrary to their promises, Morbex never had any actual contracts with Walmart, Publix, or Costco to haul freight, rendering this core justification for promised profits false.
- Failure to Pay Investors Due to the misappropriation and misuse of funds, Morbex failed to generate sufficient revenue. Most investors did not receive any profits, and those who did received only a fraction of the promised returns, with principal often not repaid.
- Unregistered Sales Agents Morbex also employed sales agents to solicit investors. These agents were never registered with the SEC as broker-dealers or associated with a registered broker-dealer, violating registration provisions.
The Enforcement Action
The SEC charged Morbex Automation LLC, its members Adrian Colon, Danilo Monzon, and Joshua Smith, with operating a $5.4 million unregistered securities offering fraud. The SEC seeks injunctions, disgorgement plus prejudgment interest, and civil penalties. Relief defendants include Morbex Automation Logistics Corp., Optimistic Services Inc., Sardinas Properties, LLC, JS7 Management LLC, Alpha Consulting Firm LLC, and Sandor Sardinas, from whom disgorgement with prejudgment interest is also sought.
Named in this action: Morbex Automation LLC, Adrian Colon, Danilo Monzon, Joshua Smith, Morbex Automation Logistics Corp., Optimistic Services Inc., Sardinas Properties, LLC, JS7 Management LLC, Alpha Consulting Firm LLC, Sandor Sardinas.