Wenatchee financial group allegedly appropriates over $770K in investments for founder’s new home, Corvette

A Wenatchee man and the investment companies he founded and controlled – one of which is the fund for the Cheney Park Commons apartment complex – have offered and sold more than $39 million in unregistered interests since 2017, among multiple other securities violations, the state alleged in an April 10 cease and desist order.

The order alleges that Joel Frank and his associated companies made “Ponzi-like” payments to investors, created false account statements and filings for investors and the state, misrepresented to investors how investment funds would be used, sold unregistered securities, and otherwise misappropriated investors’ funds – including taking at least $779,000 in unearned dividends for personal use.

Though not an “extraordinary” amount of money compared to some Washington cases, Washington Department of Financial Institutions securities director Faith Anderson said that “I think, personally, it’s a lot of money to have misappropriated from investment funds that were supposed to be invested to benefit investors in our state, especially considering that investors put portions of their life savings into these funds.”

Frank is the managing principal and founder of the financial adviser Equilus Group, Inc, and the “private capital equity firm” Equilus Capital Partners, LLC, a sponsor for Equilus Group’s real estate investment offerings. Equilus Capital Partners offered ownership interest in the Cheney Park Commons I and II funds, the OldTown Commons fund, and the ECP Opportunities Fund I, in addition to the Delaware entity Meadow Wood statutory trust, based in Liberty Lake. Together, Equilus Capital Partners sponsored and managed the funds invested in at least 23 properties and raised money from over 90 investors, of which 70 were from Washington, according to a Washington Department of Financial Institutions news release.

Equilus Group’s website, per a 2024 webpage archive, states that the group’s mission was “To provide financial security and peace of mind by delivering proven solutions with expert professionals, driven by the passion to add value to each client’s life through service and relationship.” Disability Income insurance, life insurance, income tax planning strategies, and retirement strategies were listed as some of the financial services available to clients.

The state’s financial institutions department began an investigation into Equilus Group in 2025 after a contractor reported that Frank had used investor funds for home improvements, Anderson said. The department alleged in their findings that the adviser had created a fake trust company to hold investments that advertised itself as being a federally chartered, limited purpose savings association.

“They claimed that they were offering the interest in those funds in accordance with an exemption from federal registration that also carried with it preemption of state registration requirements,” Anderson said. “And so the fact that they weren’t registered either federally or at the state level also meant that we weren’t taking a look at these funds from that angle.”

Further, the state alleged that Equilus Group paid existing investors’ dividends with money at least partially sourced from new investments, improperly sourced over $734,000 from the ECP Opportunities Fund I to pay out a departing member’s interests in Cheney Park I and II funds, and routed at least $779,000 in dividends to Frank, who spent them on, partly, down payments for a Corvette and a new, multimillion-dollar home.

Cheney Park Commons and Equilus Group representatives did not respond to requests for comment Monday or Tuesday.

The order by Washington Department of Financial Institutions suspended Frank and Equilus Group’s registrations and requires they cease and desist in violating the Washington Securities Act. It also declared that the department intends to hold Frank liable for and disgorge misappropriated funds from him once the exact amount taken is determined and fine him and the companies he founded nearly $1.2 million. There is an ongoing investigation into Colt Creek Real Estate, another of Frank’s investment funds, Anderson said.

High Plateau Asset Management, LLC, was court appointed to manage the investments into the Equilus funds in the meantime. A representative did not reply to an inquiry as to how much money investors may have lost.

Anderson warns prospective investors that any time something sounds too good to be true, it probably is.

“You should definitely take the time to check out who you’re investing with – both the investment opportunity and the person that’s advising you to invest in it,” she said. “Don’t be subject to high-pressure sales tactics. Ensure that you get disclosure about the opportunity that you can read and parse through and make sure that it makes sense to you. And if you’ve been contacted recently by somebody online, like a newfound online friend, to invest – that’s a major red flag.”

The Washington financial institutions department maintains a database of investment scams on its website.