Tuesday, September 8, 2009

SEC Asset Freeze in $32 Million Scheme

The SEC announced fraud charges and obtained an order freezing assets of the defendants of an alleged investment scheme that the Commission alleges defrauded investors of $32 million dollars. According to the press release, the SEC alleges that Sidney S. Hanson and his wife Charlotte M. Hanson solicited investors at church gatherings and in other face-to-face meetings, persuading them to cash out their retirement funds and invest in so-called private loan agreements that the Charlotte couple offered through a dozen companies they controlled (collectively, Queen Shoals Entities). Through their Web site and a widespread sales force of at least 45 "consultants," the Hansons falsely promised investors that the investment contracts they were offering would generate them yearly returns ranging from 8 to 30 percent, and that their funds would be safe in a diversified portfolio of treasury bills, precious metals, and foreign currency.

Returns of 8 to 30% a year? Investors need to spend some more time conducting due diligence to avoid spending much more time with their securities attorney pursuing their losses. Most securities attorneys will conduct a due diligence review of an investment BEFORE you make the investment. They will do it afterwards as well, when attempting to retrieve your money, but it costs quite a bit more. More>>>

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