Securities Law Prof Blog

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

Wednesday, November 7, 2007

SEC Obtains Consent Judgment in Ponzi Scheme

I have to confess -- Ponzi schemes fascinate me, and here's another outrageous one -- The  SEC  announced today  that  a federal district court for  the  Northern District  of  Georgia,  entered  judgments  as to defendants Bryant E. Behrmann (Behrmann) and Larry "Buck" E. Hunter (Hunter),  enjoining  them  from  future  securities law violations.  The  SEC charged  that, since  at least October 2005, Global, Behrmann  and  Hunter  have  orchestrated  a  massive Ponzi scheme and conducted     an   unregistered   offering   of   securities   through Global's   SPIP.  Global,  Behrmann  and  Hunter  solicited  investors to "loan" Global funds for a term of one year in exchange for promised daily  interest  payments.  Depending  on  the amount invested, Global promised   effective  annual  returns  of  more  than  1,800%.  Global purported  to  generate  revenue  sufficient  to  pay investors  their promised   returns   by   pooling   investor   proceeds   to  purchase distressed inventory,  which  Global  then  claimed to resell through various   online   auction   websites,   including   Ebay   and Yahoo!Auctions,  as  well  as  through flea markets, street sales and retail storefronts.  From  October  2005  through  March  2007, Global raised approximately  $45 million from more than 9,000 investors. The  defendants  consented to  the  entries  of the judgments without admitting  or  denying  any  of  the  allegations  of the Commission's Amended    Complaint.

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