Fraudster Blew $2.5M Investor Cash on Lavish Meals, Luxury Travel!

SEC v. Christopher Aubin, Anchor State Capital LLC, Anchor State Properties LLC, et al. — U.S. Securities and Exchange Commission Litigation Release No. 26315, dated May 27, 2025.

The SEC charged Christopher Aubin and his companies, Anchor State Capital LLC and Anchor State Properties LLC, with fraud for stealing approximately $2.5 million from at least 24 investors. Aubin allegedly used investor funds for Ponzi-like payments to earlier investors and to cover his personal and business expenses, including lavish meals and luxury travel.

In Plain English

Imagine you gave money to a friend who promised to invest it in safe, short-term loans for people who needed quick cash. They said you'd get a good return, like 12-19%, very quickly. But instead of making those loans, your friend took the money and used it to pay off other people who had given them money before, or to buy fancy things for themselves. The SEC stepped in because this friend was essentially running a scam, not a real investment business.

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

1. Promise of High-Yield Loans Christopher Aubin and his companies, Anchor State Capital LLC and Anchor State Properties LLC, solicited investments by promising to use the funds to make short-term, high-interest loans to borrowers. Investment contracts stated investors would receive returns between 12% and 19% for investments lasting one to eight months.
2. Misrepresentation of Loan Activity Contrary to promises, the defendants made very few actual loans to borrowers. The SEC's complaint alleges that the investment contracts were misrepresented, as the funds were not primarily used for the stated purpose of financing loans to Anchor State borrowers.
3. Ponzi-Like Payments Instead of funding real loans, the defendants allegedly used investors' funds largely to make payments to earlier investors. This created the illusion of a successful, profitable investment operation.
4. Personal Enrichment A significant portion of the investor money was also allegedly used to pay for Aubin's business and personal expenses. This included 'lavish meals, luxury travel and vehicles,' as detailed in the SEC's complaint.
5. Deception of Investors When investors inquired about delayed payments, the defendants made numerous false and misleading statements. They misrepresented the use of funds, the status of loans, and the reasons for repayment delays.
6. Rolling Over Investments To sustain the scheme, defendants convinced some investors to 'roll over' their principal and promised interest into new contracts with higher balances, thus avoiding immediate repayment obligations.
7. Lawsuits Emerge In mid-2024, two investors sued Anchor State in state court after their investment contracts matured but were not repaid. Other investors joined this lawsuit in December 2024.
8. Significant Unpaid Principal As of the complaint filing date, defendants had failed to repay at least $2 million in investment principal to investors whose contracts had matured, not including promised investment returns.

The Enforcement Action

On May 15, 2025, the SEC charged Christopher Aubin and his companies, Anchor State Capital LLC and Anchor State Properties LLC, with fraud for allegedly stealing approximately $2.5 million from at least 24 investors. The SEC's complaint, filed in federal court in Massachusetts, alleges that Aubin used investor money for Ponzi-like payments to earlier investors and for his own business and personal expenses, including lavish meals and luxury travel. The complaint charges Aubin and Anchor State with violating securities laws. Ashley Corcoran is named as a relief defendant for allegedly receiving proceeds from the investor funds. The SEC's case is being handled by Heidi M. Mitza, Patrick Noone, Steve Shepard, Kathy B. Shields, and Kevin B. Currid of the SEC’s Boston Regional Office.

Named in this action: Christopher Aubin, Anchor State Capital LLC, Anchor State Properties LLC, Ashley Corcoran.

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