The Securities and Exchange Commission alleges Clayton-based Acartha Group and its owner, Burton Douglas Morriss, fraudulently used $9.1 million in investor funds over several years for Morriss' personal use.

The SEC filed a federal lawsuit detailing its fraud charges in St. Louis Tuesday against Acartha, Morriss, MIC VII LLC, Acartha Technology Partners LP and Gryphon Investments III LLC. 

Morriss, who lives in Ladue, is CEO and chairman of Acartha Group, a private equity fund management company founded in 2003. MIC VII and Acartha Technology Partners are both private equity funds, and Gryphon Investment is a general partner of ATP.

Morriss and the related investment entities raised $88 million from 97 investors from 2003 until last year, according to the SEC's complaint.

However, without the investors' knowledge, Morriss misappropriated more than $9 million from the investment entities for his personal use, including paying alimony, paying for luxury automobiles, leasing a private airplane and helicopter and taking expensive vacations, the SEC alleges. 

"The offering documents and subscription agreements of the entities through which Morriss solicited investments failed to advise investors that Morriss could or would transfer their money for his personal use," the SEC complaint says.  

On Jan. 9, Morriss filed for Chapter 11 bankruptcy in St. Louis, estimating his liabilities as between $10 million and $50 million and his assets at $500,000 or less. Morriss' attorney in the bankruptcy case, Leslie Lane, did not return calls seeking comment.