The Securities and Exchange Commission is suing Lincoln Funds International Inc. and Paropes Corp., previously known as Brookstone Capital

The Securities and Exchange Commission is suing Lincoln Funds International Inc. and Paropes Corp., previously known as Brookstone Capital; along with their principals, Robert L. Carver, 53; Robert L. Carver II, 34; and James L. DeMers, 64.
The lawsuit, unsealed Tuesday in U.S. District Court in Santa Ana, says the men and their companies violated federal securities laws.
Among the allegations: The defendants failed to invest funds as promised; made baseless predictions for up to 10-fold appreciation in investment vehicles; and enticed investors with upcoming initial public offerings when no steps had been taken to initiate them.
Approximately 400 investors were affected since April 2004, authorities said, and the SEC has frozen the assets of the defendants.
Brandon Blankinship, an attorney representing DeMers, said the evidence will show his client "did not participate in any wrongdoing."