4.20.2009 The SEC brought fraud charges against Gordon B. Brigg, an investment adviser located in Nashville, Tennessee. According to the SEC, Grigg and an entity he controls, ProTrust Management, Inc. (ProTrust), engaged from approximately 2003 through 2008 in a scheme to defraud approximately 27 clients out of approximately $6.5 million, by obtaining such funds from clients and claiming to invest them in securities that do not exist. The SEC further alleges that as part of Grigg's and ProTrust's scheme, they:
- Obtained control over client funds and falsely claimed to have invested such funds in fictitious securities that they described as 'Private Placements;
- Created false and fraudulent account statements reflecting the clients' ownership of the non-existent securities;
- Falsely claimed that they had the ability to invest client funds in government guaranteed commercial paper and bank debt as part of the U.S. government's Troubled Asset Relief Program (TARP) and falsely claimed that they did invest client funds in the TARP; and
- Falsely claimed to have partnerships and other business relationships with several of the nation's top investment firms.
Click http://www.sec.gov/litigation/admin/2009/ia-2869.pdf to access the administrative action.