AZ Investor

Commission Finds Scottsdale Man and his Estate Planning Company Defrauded Investors

The Corporation Commission sanctioned respondents Jason Wootten of Scottsdale, Sean Cagle of Phoenix, Brad Mason of Phoenix, and their affiliated company, Family Tree Estate Planning, LLC, for defrauding investors with a real estate Ponzi scheme. The Commission ordered Wootten and his company to pay $3,738,040 in restitution and a $100,000 administrative penalty.

The Commission found Wootten and his company conducted seminars on creating trusts in Arizona, and once in the office of Family Tree Estate Planning, investors were offered and sold unregistered securities and notes issued by companies controlled by EquiAlt, LLC. Respondents told investors EquiAlt, LLC was raising capital to purchase, improve, lease, and dispose of distressed real property. In actuality, EquiAlt, LLC was operating as a nationwide Ponzi scheme.

The Commission found none of the respondents were authorized to sell securities in Arizona when they made multiple misrepresentations and material omissions regarding the risk and liquidity of the EquiAlt securities. In some instances, Wootten facilitated the transfer of investors’ monies into a self-directed IRA, urging at least one investor to put her entire retirement fund into the EquiAlt securities. Most of the investors were 55 years and older with no investment experience and were not able to withstand a financial loss.

In settling this matter, the respondents admit to the Commission’s findings and agree to the entry of the consent order. All documents relating to this agenda item can be found in the Commission's online docket at edocket.azcc.gov and entering docket number S-21147A-21-0051.