SEC v. Gordon B. Grigg and ProTrust Management

SEC Complaint against Gordon B. Grigg and ProTrust Management


According to the complaint, Grigg and ProTrust defrauded at least 27 clients out of approximately $6.5 million by obtaining such funds from them and claiming to have invested them in securities that do not exist. Specifically, the Complaint alleges that the defendants have:

(1) obtained control over client funds and falsely claimed to have invested such funds in fictitious securities that were described as "Private Placements;"

(2) created false and fraudulent account statements reflecting the clients' ownership of non-existent securities;

(3) falsely claimed that the defendants 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, and that they did invest client funds in the TARP program; and

(4) falsely claimed to have partnerships and other business relationships with several of the nation's top investment firms.

The Complaint alleges that the defendants have violated the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

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Reference Info:Pleadings | Federal, 6th Circuit, Tennessee | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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