The Securities and Exchange Commission (SEC) has filed a lawsuit against 777 Partners LLC and 600 Partners LLC, alleging that between January 2021 and May 2024, they fraudulently raised $237 million from 13 investors through a preferred equity offering by misrepresenting the financial health of the Issuers (777 Partners and 600 Partners). Despite claiming substantial positive net income to support a 10% annual dividend, the Issuers faced a severe liquidity crisis, exacerbated by a $300 million overdraw of a credit facility by SuttonPark Capital LLC, their largest subsidiary, which compromised its profitability and was concealed from both the credit facility lender and investors.