Litigation Releases (Ross Gregory Erskine)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26559 / June 3, 2026

Securities and Exchange Commission v. LFS Funding Limited Partnership, et al., No. 2:21-cv-04211-HDV-MAR (C.D. Cal. filed May 20, 2021)

SEC Obtains Final Judgment in Fraudulent Offering

On May 20, 2026, the U.S. District Court for the Central District of California entered a final judgment as to Ross Gregory Erskine in connection with the SEC's civil enforcement action against him.

On May 20, 2021, the SEC filed a complaint alleging that, between approximately May 29, 2018, and May 29, 2019, LFS Funding Limited Partnership raised more than $618,000 from investors through a fraudulent securities offering of limited partnership interests. The complaint further alleged that Erskine, who was not registered as a broker or dealer, solicited prospective investors to purchase interests in the partnership, including by providing them private placement memorandums that contained materially misleading statements, and received commissions upon successfully soliciting an investor to purchase interests in the partnership.

On August 25, 2023, the Court granted the SEC's motion for summary judgment, finding that Erskine violated Sections 15(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 5 and 17(a) of the Securities Act of 1933. The final judgment permanently enjoins Erskine from violating the above-stated provisions of the federal securities laws and from soliciting any person or entity to purchase or sell any security. The Court also ordered Erskine to pay, jointly and severally with his business entities, disgorgement of $60,625 with prejudgment interest of $15,450.03 and a civil penalty of $100,000.

The litigation was handled by Charles Canter and supervised by Stephen Kam of the SEC's Los Angeles Regional Office.