The Securities and Exchange Commission today announced fraud charges, an asset freeze and other emergency relief against Robert Stinson, Jr., of Berwyn, Pennsylvania, and several Philadelphia-area entities he controlled, with perpetrating an offering fraud and Ponzi scheme in which at least $16 million was raised from more than 140 investors.
According to the SEC's complaint, from at least 2006 through the present, Stinson, primarily through Life's Good, Inc. and Keystone State Capital Corporation, two companies he controlled, sold purported "units" in four Life's Good private real estate hedge funds. ("Life's Good Funds"). Stinson falsely claimed that the Life's Good Funds generated annual returns of 10 to 16 percent by originating more than $30 million in commercial mortgage loans, and other investment income gained on the sale of foreclosure and investment properties. In reality, the SEC's complaint alleges that Stinson has been stealing investor funds for his personal use, transferring money to family members and others, and using new investor proceeds to make payments to existing investors in the nature of a Ponzi scheme.
No comments:
Post a Comment