The U.S. Securities and Exchange Commission (SEC) has initiated legal proceedings against a series of entities and an individual linked to various alleged fraudulent activities concerning real estate investments. The lawsuit was filed in the Eastern District of Wisconsin on August 1, 2025, and targets Joseph J. Nantomah, along with his companies: Investors Capital LLC, Global Investors Capital LLC, and High Income Performance Partners LLC.
The SEC’s complaint outlines a scheme that reportedly took place from May 2020 to January 2024, during which the defendants are accused of enticing investors with promises of purchasing, renovating, and reselling real estate properties for profit. Through these efforts, they allegedly raised approximately $1.9 million from around 30 investors across the United States, many of whom were part of the Nigerian-American community. Concerned individuals were reportedly misled about how their investment funds would be utilized, with more than 80% allegedly being spent on personal expenses rather than on real estate ventures as promised.
Nantomah portrayed himself as a highly successful entrepreneur with an impressive real estate portfolio he built after moving from Africa to Wisconsin in 2016. He claimed he arrived in the U.S. with a mere $4,700 and transformed himself into a millionaire, gaining recognition as a public speaker, life coach, mentor, and philanthropist. Such claims were heavily featured on his website and throughout social media platforms, as well as during investor presentations and financial seminars.
However, the SEC’s investigation suggests serious discrepancies in Nantomah’s narrative. His assertion of owning real estate worth over $23 million is contradicted by public records, which indicate that he and his associated companies collectively owned only 11 properties valued at around $1 million during the relevant period.
The promised returns on investments (ROI) varied widely, with claims typically ranging from 10% to 30% within a year, although at times even higher returns were guaranteed. Written agreements were put in place for initial investments, in which they stated the defendants would manage the purchase, renovation, and sale of real estate properties. Further investments frequently occurred through verbal agreements under similar premises.
Despite reassurances to investors, a mere fraction of the raised funds was reportedly directed towards real estate purchases or renovations. Instead, Nantomah allegedly combined investor funds with his personal accounts and those of his business ventures, directing the money towards his personal lifestyle, which included expenses for jewelry, cars, and travel.
The investment agreements mentioned specific properties that were to be acquired and developed. However, records show that many of these properties were not owned by the defendants, and the few that were acquired were often in foreclosure at the time.
Most investors reportedly did not receive the agreed-upon returns or principal investments. When investors raised concerns about their investments, they were met with various excuses and delays. Some individuals chose to take legal action against Nantomah and his companies due to these unresolved payment obligations. Yet, in spite of these issues, the defendants continued to solicit new funds under the guise of “successful investments,” without disclosing the payment failures to previous investors.
The SEC asserts that these actions violate several federal securities laws, specifically citing Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, alongside Rule 10b-5. The regulatory body believes there is a significant probability that, without intervention, the defendants will persist in their unlawful conduct.
In response, the SEC is pursuing a court judgment that would implement permanent prohibitory measures against further securities offerings or sales by the defendants. They are also seeking the return of profits obtained through fraudulent means, along with interest, and the imposition of civil monetary penalties.