Los Angeles brokers charged with securities fraud, alleging they had put their customers at risk by refinancing their homes with subprime mortgages

Securities and Exchange Commission has charged five Los Angeles brokers with securities fraud, alleging they had put their customers at risk by refinancing their homes with subprime mortgages which they could not afford, to fraudulently sell them unsuitable securities."This case demonstrates the SEC's commitment to halting fraudulent sales practices by brokers and others in the securities industry," SEC Division of Enforcement director, Linda Chatman Thomsen said.The SEC has alleged that at a time when investors were already losing their homes in record numbers, these brokers pushed their customers into risky and unsustainable subprime mortgages as a means of financing a fraud.Not only was the whole scheme fraudulent, but the brokers profited by charging commissions at each stage, SEC said in a statement.<br />The SEC would relentlessly pursue unscrupulous brokers and other securities industry professionals who seek to line their own pockets at their customers' expense, it added.The Commission has alleged that the five registered representatives, who worked for World Group Securities Inc, paid themselves high commissions on both the subprime mortgages and the securities purchases.While the customers generally were of modest means, had little prior investment experience, little or no formal education beyond high school and some of them did not speak English fluently or at all, the statement added

Los Angeles brokers charged with securities fraud, alleging they had put their customers at risk by refinancing their homes with subprime mortgages

Securities and Exchange Commission has charged five Los Angeles brokers with securities fraud, alleging they had put their customers at risk...

Read more »

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. <br />The lawsuit, unsealed Tuesday in U.S. District Court in Santa Ana, says the men and their companies violated federal securities laws. <br />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. <br />Approximately 400 investors were affected since April 2004, authorities said, and the SEC has frozen the assets of the defendants. <br />Brandon Blankinship, an attorney representing DeMers, said the evidence will show his client "did not participate in any wrongdoing."

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; ...

Read more »