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Commission Orders More than $4.49 Million in Restitution for Investors Defrauded by Real Estate Investment Scheme

The Corporation Commission found Premier Asset Management Group, LLC and multiple individuals defrauded investors with a real estate investment scheme involving unregistered promissory notes.

The Commission ordered respondents Michael Barry Eckerman of Paradise Valley, Bernardine Ann Michalik (Shields) of Scottdale, Venessa Sandoval of Tempe, their spouses, and Premier Asset Management Group LLC to pay restitution amounts ranging from $1,460,259 to $4,495,136 and to pay administrative penalties of up to $400,000.

The Commission found Premier Asset Management Group, LLC bought high-end real estate properties to fix up and rent out or sell, funded with notes purchased by investors, most of whom lived in Arizona.

The Commission found the promissory notes were marketed to potential investors via cold calls, promising above market returns that were higher than other typical investments. However, none of the respondents were registered to offer or sell securities in Arizona.

The Commission found the respondents committed securities fraud by failing to disclose investment risks, Mr. Eckerman’s history of failed real estate companies, and various legal actions taken against Mr. Eckerman and his prior real estate companies. In January 2022, the Commission sanctioned Mr. Eckerman and Luxury Management Group, LLC for defrauding investors with an investment involving real estate and luxury automobile rentals (Decision #78419).

All documents related to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov  and entering docket number S-20996A-16-0467.
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Arizona Corporation Commission

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