From the SEC complaint against LEROY BROWN, JR. and LB STOCKS AND TRADES ADVICE LLC, Defendants.
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From the SEC complaint against LEROY BROWN, JR. and LB STOCKS AND TRADES ADVICE LLC, Defendants.
http://imageshack.com/a/img537/7039/cAgscl.jpg
http://imageshack.com/a/img908/8500/LNHLjn.jpg
http://imageshack.com/a/img901/6370/0XlumN.jpg
A few very good tips on the SEC link below that would benefit any investors.
Affinity Fraud Targeted at the Military
In 2013, the SEC halted a hedge fund investment scheme by a former Marine who pretended to be a successful trader to defraud fellow veterans, current military, and other investors. The SEC alleged that the defendant raised nearly $1.8 million from investors, but invested less than half of that amount while using more than $400,000 for personal expenses such as a Hollywood mansion, luxury automobile, and extravagant tabs at high-end nightclubs. The defendant allegedly generated phony hedge fund account statements showing annual returns exceeding 200 percent for 2012, when the hedge fund actually lost money. According to the SEC’s complaint, the defendant solicited friends, family members, and fellow veterans to invest in his hedge fund, and the defendant controlled a so-called charity called the Veterans Financial Education Network (VFEN) that claims to teach veterans how to understand and manage their money.
Reminder: Never make an investment based solely on the recommendation of a member of an organization or group to which you belong. A key to avoiding investment fraud, including scams that target specific groups, is using independent information to evaluate financial opportunities.
Check out the qualifications of an investment professional – even one located near a military base. Details on an investment professional’s background are available through the SEC’s Investment Adviser Public Disclosure website and FINRA’s BrokerCheck. If you have questions, call the SEC’s toll-free investor assistance line at (800) 732-0330.
SEC.gov | Investor Bulletin: Savings and Investing Basics for Military Personnel