The Returns Turned Out Too Good To Be True
The Returns Turned Out Too Good To Be True
We've been bringing you the latest as it happens on SB Capital being shut down by the SEC this week; today, news came out that Feathers raised millions from investors by promising high returns, Banking Business Review reports. "The returns turned out to be too good to be true and were funded in part with new investors' money," SEC's LA Office Associate Regional Director John McCoy said.
The SEC charges Feathers for transferring over $6 million from the funds to SB Capital to pay its expenses from 2009 to early 2012. The firm also hid from investors a February and March 2012 sale of the mortgages to another fund at an inflated price, generating a "profit" so it could pay SB Capital management fees of over $575,000. Read More at Banking Business Review: http://assetmanagement.banking-business-review.com/news/sec-seizes-42m-small-business-capital-ponzi-like-scheme-290612
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