SEC charges adviser with fraud linked to bailout

[radfringe]

Source: AP

SEC charges adviser with fraud linked to bailout
By MARCY GORDON
Jan 29, 2009 - AP

WASHINGTON (AP) — Federal regulators on Wednesday charged an investment adviser with securities fraud, saying he bilked clients of at least $6.5 million in the first scheme using the government's $700 billion financial bailout program as a front to lure investments.

The Securities and Exchange Commission won a court order freezing the assets of Gordon Grigg of Nashville and his firm, ProTrust Management Inc.

Grigg and ProTrust consented to a temporary restraining order, the asset freeze and an accounting of all funds raised, the SEC said. The agency is seeking unspecified restitution and fines against them; a hearing has been scheduled for Feb. 6.

The SEC alleged that Grigg defrauded clients by falsely telling them their money was being invested in the Treasury Department's financial rescue plan, called the Troubled Asset Relief Program, and other securities that actually don't exist.

Grigg represents himself as a financial planner and investment adviser, but neither he nor his firm is registered with the SEC or a state regulator, the agency said in its civil lawsuit filed in federal court in Nashville. The SEC said that Grigg, who obtained control over funds of at least 27 clients, falsely claimed to have invested their money in securities described as "private placements," creating phony account statements.

Read more: www.google.com/hostednews/ap/article/ALeqM5joS93MXNJGBDYkFH70Wjj2SGCcywD960DT400

[whistle]

1. The Bush/Paulson $700 billion bailout was all a swindle

[Winterblues]

7. Obama was more of a supporter than Bush*

At first Bush* didn't want to do anything. Obama put tremendous pressure on Democrats to support TARP. Granted it all originated from Paulson and Beneke(sp) but they convinced Obama and he made it his mission..I believe he was conned as were most Americans. We are hearing daily about all the HUGE bonus packages and frivolous spending by the recipients of our money and still no real oversight as to how the money is being used or even who is receiving the money and how much they are receiving..Treasury will not release those figures.

[radfringe]

2. it's just the "FIRST SCHEME"

wonder how many more are out there...

[tanyev]

3. Republican.

GRIGG, GORDON
FRANKLIN,TN 37069 PROTRUST MANAGEMENT/CHAIRMAN 8/30/08 $500 McCain, John (R)
GRIGG, GORDON MR
NASHVILLE,TN 37209 PRO TRUST/CHAIRMAN 3/29/04 $500 National Republican Congressional Cmte (R)
GRIGG, GORDON MR
NASHVILLE,TN 37215 PROTRUST 6/29/04 $500 National Republican Congressional Cmte (R)

www.opensecrets.org

[depakid]

4. and a criminal

The first of many more to surface.

Let's hope that the new administration is serious about reinstating accountability.

[radfringe]

5. OMG!!11111!!! a republican and a criminal ??11!!!

how could that be???? :rofl:

[jamesinca]

6. just a random thought

This would probably go in a GD topic by itself.

At what point do we quit be concerned about looking partisan and start prosecuting Republicans? And when is it called looking back instead of looking forward?

It seems like I hear the looking forward and don't dwell on the past. Hope and change, not the divisive ideas of the past.

Nothing to do with your post, my mind just went off on a tangent.

[lonestarnot]

8. woopsie another con!

[NashVegas]

9. I Started a Thread On This In GD

To talk specifically about how he told his investors that he was putting their money into TARP-related bonds.

Here's the local source:

http://www.nashvillepost.com/news/2009/1/28/sec_goes_after_franklin_man_for_tarprelated_fraud