Essex Capital Corporation Investment Loss Recovery Options

If you are have suffered losses in Essex Capital Corporation, you may be able to pursue recovery of your losses through securities arbitration or litigation. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.

Essex Capital Corporation Investors Can Pursue Recovery of their Losses

If you have suffered losses in the Essex Capital Corporation you may be able to pursue recovery of those losses through securities arbitration or litigation due to the lack of due diligence on Essex Capital Corporation, or an inappropriate level of risk that you were exposed to in the Essex Capital Corporation.

According to recent news reports, the Securities and Exchange Commission charged Essex Capital Corporation, an equipment leasing company and its founder Ralph Iannelli with defrauding investors in connection with sales of over $80 million in promissory notes.

According to the SEC's complaint, between 2014 and 2017, Essex Capital Corporation and its founder, Ralph T. Iannelli, made a series of false and misleading statements and illusory personal guarantees to registered investment advisers to induce them to invest millions of dollars of their clients' money in Essex's failing equipment leasing business. The SEC alleges that Essex and Iannelli provided one investment adviser with fake financial statements that overstated Essex's assets by more than $20 million and falsely told another investment adviser that Essex would assign equipment leases to its clients when the same leases had already been pledged as collateral for bank loans. The SEC's complaint further alleges that as Essex's finances deteriorated, the company resorted to frequent Ponzi-like payments, paying interest and principal to existing Essex investors with funds raised from newer investors. At the same time, Iannelli allegedly paid himself millions of dollars in bonuses and siphoned millions of dollars out of Essex through interest-free loans with no maturity date. According to the SEC, Iannelli personally owes the company over $6.4 million.

Investment Advisory Firms Had a Duty to Conduct Proper Due Diligence on Essex Capital Corporation

Securities broker-dealers and investment advisory firms have a regulatory duty to ensure that any investments they recommend to customers are suitable for them. This is especially important for brokerage and investment advisory firms selling promissory note investments like the Essex Capital Corporation.

FINRA rules and common law fiduciary duties require that securities broker-dealers and investment advisers conduct a suitability analysis when recommending securities to investors that will take into account the investors’ knowledge and experience. The brokerage or investment advisory firm must make reasonable efforts to gather and analyze information about the customer’s other holdings, financial situation and needs, tax status, investment objectives and such other information that would enable the firm to make its suitability determination. For investment advisers, they are required to make sure that the investment is in the best interests of the client.

In addition to ensuring that securities are suitable for its customers on an individual level, FINRA Rule 2111 (NASD Rule 2310) also states that a securities broker must have reasonable grounds to believe that a recommendation to purchase, sell or exchange a security is suitable for the customer. This “reasonable-basis” suitability requirement means that in the context of complex investments like the Essex Capital Corporation.

Investment advisors, brokers, brokerage firms “may not rely blindly upon the fund manager for information concerning the fund,” nor may it rely on the information provided by the fund manager lieu of conducting its own reasonable investigation. Investment advisory and brokerage firms can be held liable for investment losses that stem from a failure to conduct adequate due diligence, or for breach of fiduciary duty.

Essex Capital Investors May Be Able to Pursue Recovery of their Losses through Securities Arbitration

Fortunately for investors, they may be able to recover their investment losses in the Essex Capital Corporation through securities arbitration or litigation against the investment adviser, stockbroker, brokerage firm that recommended the Essex Capital to them.

If you are have suffered losses in Essex Capital Corporation, you may be able to recover your losses through securities arbitration or securities litigation. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.

Kons Law Firm represents investors nationwide in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and FINRA arbitration practice, please visit


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Kons Law Firm represents investors nationwide in securities arbitration and litigation matters. That means we can help you regardless of where you live. We regularly represent investors in states like California, Texas, New York, Florida, Illinois, Wisconsin, Minnesota, Arizona, Nevada, Washington, Colorado, Massachusetts, New Jersey and Connecticut, and cities like Los Angeles, New York, Houston, Philadelphia, San Antonio, San Diego, Las Vegas, Dallas, Fort Worth, San Jose, San Francisco, Phoenix, Denver, Seattle, Boston, and Miami. Please contact our firm today to discuss how we may be able to help you, regardless of where you live.

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For most cases, Kons Law Firm offers a contingency fee representation. This means that the attorneys' fee that you pay is a percentage of the recovery before expenses. If there is no recovery, then you are not responsible for paying any attorneys' fees. Depending on the case, you may still be responsible for the expenses. Contingency fee representation helps align the interest of the lawyer and the client, and provides a financial incentive for the lawyer to try to get the best possible results for the client. To learn more about our contingency fee representation, contact our firm today for a FREE CONSULTATION.

This website is marked as “ADVERTISING MATERIAL” and as “ATTORNEY ADVERTISING”. The responsible attorney for this attorney advertisement is Joshua B. Kons, Esq. (Juris No. 434048), whose contact information can be found on the Contact Us link. Any information contained on this website is for informational purposes only and is not intended to be legal advice. Any investigation referenced on this website is independent in nature and is being conducted by the Firm privately. Any information or statements contained in this website are statements of opinion derived from a review of public records, and should not be viewed as not statements of fact. Each potential case is assessed on a case-by-case basis, and there is no guarantee that the Firm will propose representation. Copyright © 2012-2023. All Rights Reserved. *In contingency fee representation, clients may still be responsible for costs. Prior results do not guarantee a similar outcome.