Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Thursday, October 11, 2007

SEC Charges Misappropriation Scheme Against Seniors

The SEC charged Robert Ray White Samples ("Samples")with misappropriating investor funds through two fraudulent investment schemes. According to the Commission's complaint, filed October 4 in federal district court in Denver, Colorado, from at least September 2002 through September 2006, Samples, operating through his company, Pot O' Gold Financial Services, LLC ("POG"), used material misrepresentations to raise at least $1,033,597 from 31 investors, including seniors, in two pooled investments. On October 11, the Court entered an order, with the defendants' consent, granting a preliminary injunction against Samples and POG, and freezing their assets and ordering an accounting.

The complaint alleges that Samples represented to investors that funds placed in Private Capital Accounts would be pooled together and invested primarily in fixed income securities and secondarily in an auto loan program under Samples' management to generate returns. The complaint also alleges that Samples sold interests worth almost $65,000 in POG's Golden Investment Club ("Club"). Samples represented to Club investors that he would pool their funds together in a brokerage account for investment in securities, which he would manage in exchange for an advisory fee. According to the Commission's complaint, Samples' representations to investors were false and he misappropriated a large portion of the funds he received to pay for personal expenses such as a new home, two timeshare condominiums, automobiles, and personal credit cards.

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