A prominent Albuquerque real estate executive used his reputation to defraud about 600 investors in New Mexico and elsewhere out of an estimated $80 million in a Ponzi scheme, the Securities and Exchange Commission alleged in a federal lawsuit.
In the complaint, filed Tuesday, the SEC accused Douglas F. Vaughan of fraud and selling unregistered securities. The SEC obtained a temporary restraining order to stop the scam and freeze Vaughan's assets and those of two companies he founded.
Vaughan and his Vaughan Company Realtors filed for Chapter 11 bankruptcy protection last month.
The SEC seeks unspecified financial penalties and a court order that Vaughan give up gains from the alleged scheme.
Vaughan's attorney, Robert Gorence, said Wednesday he and his client were still reviewing the complaint and the restraining order.
"We have no comments to make other than we look forward, ultimately, to our day in court," Gorence said.
The state Regulation and Licensing Department's Securities Division also has been investigating Vaughan. Superintendent Kelly O'Donnell said last month that investors had contacted the division, concerned over Vaughan offerings.
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