BOSTON — The Securities and Exchange Commission is alleging that Inofin, a subprime auto finance firm, and several of its top officers improperly raised funds through unregistered securities, among other claims.

The SEC is taking the company to court over the allegations and has named top officers in the lawsuit as well, including Michael Cuomo, Kevin Mann Sr., Melissa George, Thomas Kevin Keough and David Affeldt.

"Inofin, a Massachusetts corporation, and the individual defendants named herein have illegally raised at least $110 million from hundreds of investors residing in 25 states and the District of Columbia, through the sale of unregistered securities, among other things, making material misrepresentations about Inofin's financial performance, its business activities and the use of investor funds," the court filing stated.

The court papers went on to allege, "From at least 2004 to 2010, Inofin and its principal officers president Michael Cuomo, chief executive officer Kevin Mann and chief operating officer Melissa George misrepresented to investors that the company uses investor money for the sole purpose of funding subprime auto loan lending activity. As part of the pitch, Inofin and its principals told investors that they could expect to receive returns from 9 to 15 percent on their investment because Inofin loaned investor money to its subprime borrowers at an average rate of 20 percent."

However, the court documents claim that since at least 2005, "Inofin and its principal officers have known that these representations omitted certain material facts that misled investors about the substance of Inofin's true lending activities."

The SEC alleged, "Beginning in 2005 and continuing through 2010, Inofin and its principals have failed to inform investors that Inofin lent approximately a third of its capital to businesses established and controlled by and for the benefit of Cuomo and Mann for the purpose of starting four used-car dealerships and engaging in multiple commercial and residential real estate property developments. Inofin and its principals also failed to disclose that ‘non-auto' loans were made at rates that were substantially lower than the subprime auto loan rates advertised to investors."

Moreover, the SEC claims that as early as 2006 and through 2011, Inofin "has had a negative net worth and progressively deteriorating financial condition."

"This deterioration has been caused not only by the failure of Inofin's undisclosed business activities, but also by its management's conduct in selling off Inofin's core auto loan portfolio at a discount in order to solve ever increasing shortages," the court documents read.

On its site, Inofin describes itself as a Massachusetts corporation organized on March 1, 1994 that is a licensed financial service company specializing in providing an alternative and independent source of financing for used motor vehicle sales that do not meet traditional financing criteria, either because the value of the vehicle is below the conventional financing threshold or because the customer is unable to satisfy the traditional finance company's requirements.

"Inofin has grown from its original nucleus to today's 700-plus dealer members and a well-developed customer base. Inofin's dealer base is currently composed of Massachusetts, Connecticut, and Maine used auto dealers striving to please and support good people with less than perfect credit," according to the site.