Washington State DFI v. iCap Enterprises - Securities Fraud

WA DFI Securities Enforcement

Filed February 17th, 2026

Detected February 27th, 2026

Summary

The Washington State Department of Financial Institutions has issued a Statement of Charges against iCap Enterprises, Inc., Chris Christensen, Jim Christensen, and 10 other related parties for alleged securities fraud. The action seeks to impose fines, costs, and cease and desist orders for operating a Ponzi scheme that defrauded over 1,800 investors out of at least $250 million.

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What changed

The Washington State Department of Financial Institutions (DFI) has issued a Statement of Charges (S-23-3608-26-SC01) against iCap Enterprises, Inc., Chris Christensen, Jim Christensen, and ten other related parties. The DFI alleges that from 2013 to 2023, iCap operated a Ponzi scheme, raising at least $250 million from over 1,800 investors by issuing unregistered and non-exempt debt instruments. The company allegedly failed to deploy funds for legitimate operations and used new investor money to pay existing investors, while disseminating false and misleading information about its profitability.

This enforcement action seeks to impose significant penalties, including cease and desist orders, fines, costs, and denial of registrations. The respondents have the right to request a hearing. Compliance officers should review the allegations and potential implications for any business relationships or investments involving these entities and individuals. The DFI's action highlights the critical importance of verifying the legitimacy of investment offerings and ensuring compliance with securities registration and anti-fraud provisions.

What to do next

Review the Statement of Charges for potential impact on business relationships.
Assess any existing investments or dealings with iCap Enterprises and its associated parties.
Ensure adherence to securities registration and anti-fraud regulations.

Penalties

Cease and desist orders, fines & costs, denial of registrations

Source document (simplified)

iCap Enterprises, Inc., Chris Christensen, Jim Christensen, and 10 other related parties (full list in Statement of Charges) – Statement of Charges – S-23-3608-26-SC01

Case summary

On February 17, 2026, the Washington State Department of Financial Institutions Division of Securities entered a Statement of Charges (S-23-3608-26-SC01) against iCap Enterprises, Inc., Chris Christensen, Jim Christensen, and 10 other related parties (full list in Statement of Charges).

Order details

Order File: S-23-3608-26-SC01

Laws & Rules: RCW 21.20.140 RCW 21.20.010 RCW 21.20.040 RCW 21.20.110

Penalties/Remedies:

Intent to order:

Cease and desist;
Fines & costs;
Denial of Registrations

Allegations

Respondents:

iCap Enterprises, Inc.; iCap Pacific Northwest Opportunity and Income Fund, LLC; iCap Northwest Opportunity Fund, LLC; iCap Equity, LLC; iCap Pacific Income Fund 4, LLC; iCap Vault 1, LLC; iCap Pacific Income Fund 5, LLC; iCap Investments, LLC; iCap Funding, LLC; iCap Pacific NW Management, LLC; iCap Vault Management, LLC; Christopher “Chris” James Christensen; James “Jim” Michael Christensen.

Allegations:

From at least 2013 to 2023, iCap issued a series of private placements of debentures and promissory notes. The company promised to invest the funds in real estate ventures and pay investors a return. In total, the company raised at least $250 million from more than 1,800 investors.
iCap and its management team failed to deploy investor funds on legitimate business operations and relied on new investors to cover interest obligations to existing investors. The company operated as a Ponzi scheme.
While offering and selling its unregistered — and in some cases, non-exempt— debt instruments, iCap and its management team spent years disseminating false and misleading information about the businesses’ profitability and operations. The Respondents have a right to request a hearing on the Statement of Charges.