The SEC brought administrative actions against Thomas R. Fry, Bevan J. Wilde, Gary W. Hansen, Michael G. Butcher, James B. Mooring, and Michael W. Averett, who were found to have, among other things, offered and sold purported high-yield promissory notes to investors using private placement memoranda that falsely stated that all the investors’ funds were being used to make collateralized domestic real estate and small business loans. According to the SEC, the private placement memoranda falsely represented that Fry, Wilde, Hansen, Butcher, Mooring and Averett would perform due diligence on the purported investment opportunity. The SEC found that they performed virtually no due diligence. Contrary to the representations made to investors, the SEC stated that a majority of funds raised were funneled by Fry to Jeffrey L. Mowen, a convicted felon and securities law recidivist who was operating a Ponzi scheme. While engaging in these securities sales, Fry, Wilde, Hansen, Butcher, Mooring and Averett were not registered as broker-dealers nor associated with a registered broker dealer.
Click to access the administrative orders.
http://sec.gov/litigation/admin/2012/34-66473.pdf http://sec.gov/litigation/admin/2012/34-66474.pdf http://sec.gov/litigation/admin/2012/34-66475.pdf
http://sec.gov/litigation/admin/2012/34-66476.pdf http://sec.gov/litigation/admin/2012/34-66477.pdf http://sec.gov/litigation/admin/2012/34-66478.pdf
