If you’ve come across the name Ronald A. Fossum Jr. while researching a financial advisor, tax strategist, or potential business partner, it’s worth understanding his full history before making any decisions. Public records show he was the subject of a significant SEC enforcement action involving investor funds, and he now operates a tax consulting business that frames this history in a particular way. This article lays out what’s documented, sourced directly from SEC filings and court records.
The SEC Fraud Case Against Ronald A. Fossum Jr.
According to a litigation release published by the U.S. Securities and Exchange Commission, Ronald A. Fossum Jr. raised more than $20 million from over 100 investors between approximately March 2011 and June 2016. The funds were raised through unregistered securities offerings tied to three investment vehicles he owned and controlled.
The Funds Involved
- Accelerated Asset Group, LLC
- Smart Money Secured Income Fund, LLC
- Turnkey Investment Fund, LLC
These three entities were collectively referred to as the “SMFG Funds” in the SEC’s complaint, which was filed in the U.S. District Court for the Western District of Washington.
What the SEC Alleged
The SEC’s complaint described a pattern of misappropriation that went well beyond simple mismanagement. According to the filing, Fossum used fund assets to cover personal expenses, including living rent-free in a home owned by one of the funds and paying for extensive international travel and his own federal taxes.
The complaint also alleged that instead of charging the disclosed one-time management fee of $2,990 per investment unit, Fossum secretly took $20,000 or more in compensation from each unit sold — a markup of more than 500% over what investors were told they would pay.
The Outcome: A $1.3 Million Judgment
The case did not end with allegations alone. A federal judge ordered Fossum to repay what he had taken, plus interest, along with an additional civil penalty.
- Total judgment amount: $1,271,552.46
- Additional civil penalty: $320,000
- Payment deadline: 14 days after the judgment was entered
- Industry bar: Fossum was barred from working in the securities industry
The three SMFG Funds filed for bankruptcy in June 2016 and were subsequently liquidated by a court-appointed trustee, according to the SEC’s litigation release and reporting by InvestmentNews.
Fossum’s Current Business: Tax Planning and Speaking
Despite the securities industry bar, Fossum has continued working in financial services under a different banner. He now runs a tax planning practice and has built a public-facing brand as a tax strategist and financial educator.
How the SEC Case Is Now Described
On his current business website, the SEC matter is characterized as “an administrative filing” with the claim that there was “no court case, no criminal charges, and no finding of guilt.” This framing differs substantially from what’s documented in the SEC’s own litigation release and the federal court judgment, which explicitly describes a civil court case, a monetary judgment, and an industry bar — though it’s accurate that no criminal charges were filed, since the SEC action was a civil enforcement matter, not a criminal prosecution.
Media appearances are also prominently featured in his current marketing, including mentions of Fox Business, MSNBC, NBC, and ABC. According to a 2022 industry survey on financial advisor marketing, media appearances are one of the most commonly used trust signals by advisors with troubled regulatory histories, since they can create an impression of credibility independent of a person’s actual compliance record.
Why This Matters If You’re Researching Ronald A. Fossum Jr.
Anyone considering working with a financial professional should check their regulatory history directly rather than relying solely on a business’s own website. The SEC and FINRA both maintain free, searchable databases (SEC litigation releases and FINRA BrokerCheck) where enforcement actions, bars, and judgments are documented.
Questions Worth Asking Before Hiring Any Financial Professional
- Has this person ever been the subject of an SEC or state securities enforcement action?
- Are they currently licensed, or have they been barred from the industry?
- Do they manage client funds directly, or only provide advice/education?
- Can they provide independent, third-party verification of their claims?
Frequently Asked Questions
Was Ronald A. Fossum Jr. criminally charged? No criminal charges were filed against him. The SEC action was a civil enforcement matter, which resulted in a monetary judgment, a civil penalty, and a bar from the securities industry — but it did not involve a criminal prosecution or conviction.
How much money did Ronald A. Fossum Jr. raise from investors? According to the SEC’s complaint, Fossum raised more than $20 million from over 100 investors between 2011 and 2016 through three investment funds he controlled, collectively referred to as the SMFG Funds.
What happened to the funds Ronald A. Fossum Jr. managed? The three funds — Accelerated Asset Group, Smart Money Secured Income Fund, and Turnkey Investment Fund — filed for bankruptcy in June 2016 and were liquidated by a court-appointed trustee, according to SEC and news reports.
Is Ronald A. Fossum Jr. currently licensed to sell securities? No. As part of the judgment in the SEC case, Fossum was barred from working in the securities industry. His current business activities are focused on tax planning and education rather than securities sales.
Where can I verify this information myself? The SEC’s litigation release (LR-24017) on sec.gov contains the original complaint details, and InvestmentNews published independent reporting on the case and judgment. FINRA BrokerCheck can also be searched directly for any individual’s regulatory history.
Conclusion
The public record on Ronald A. Fossum Jr. includes a documented SEC fraud case, a $1.3 million-plus judgment, and a permanent bar from the securities industry — facts that exist independently of how they’re described on any business website. If you’re evaluating Ronald A. Fossum Jr. or any financial professional for advice on your money, take the time to verify their regulatory history through SEC and FINRA’s free public tools before making a decision.
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