Delaware Attorney General Kathleen Jennings’ Investor Protection Unit (IPU) announced on Friday, Nov. 6, that it has secured restitution for investors in real estate investments who were sold unregistered securities styled as joint ventures.

Pathmaker Solutions LLC and its managing member, Jared Guckenberger, agreed to pay restitution to several investors in a real estate flipping business. According to the Delaware Department of Justice, from June 2014 until December 2015, Pathmaker sold investments to several investors. Those investments, though styled as interests in “joint ventures,” they said, had the characteristics of securities that should have been, but were not, registered with the IPU.

The investments were being offered for the purpose of purchasing, renovating and reselling real estate properties. Following its investigation, the IPU filed an administrative complaint against Pathmaker and Jared Guckenberger, alleging they engaged in securities fraud by failing to make key disclosures to investors regarding the handling of their money. The IPU also alleged that Pathmaker and Jared Guckenberger sold unregistered securities.

“The sale of improperly registered investments puts investors at risk,” said Jennings. “We will continue to protect investors by indefatigably enforcing the Delaware Securities Act’s securities registration provisions.”

IPU’s administrative complaint was resolved pursuant to the terms of an administrative consent order. In the consent order, IPU concludes that Pathmaker and Guckenberger sold unregistered securities. Neither Pathmaker nor Guckenberger admitted to any wrongdoing. Pathmaker and Guckenberger agreed to pay $100,000 in restitution to their investors and agreed to entry of a permanent bar from soliciting investors in any security- or real estate-related business.

Anyone with questions about whether an investment or investment professional has been properly registered can reach out to the IPU by phone at (302) 577-8424 or by e-mail at Investor.Protection@delaware.gov.

The matter was handled by the Assistant Director of Investor Protection Joey Tabler, Special Investigator Mark Hawk and Forensic Accountant Clyde Hartman.