December 14, 2007
Philly Broker Indicted for Defrauding School Districts
The SEC announced today that on December 11, 2007, Robert Bradbury (Bradbury), the chairman, and a principal shareholder of, Dolphin & Bradbury, Incorporated (D&B), a Philadelphia broker-dealer, was indicted by a grand jury convened by the United States Attorney for the Eastern District of Pennsylvania. The nine count criminal indictment charges Bradbury with defrauding four Pennsylvania school districts by selling them high-risk securities that were unlawful and inappropriate investments for the districts. According to the indictment, Bradbury concealed from the school districts the true nature of and risks associated with the high-risk bond anticipation notes, issued to finance a speculative golf course project known as Whitetail. According to the indictment, the notes eventually defaulted in September 2004, and the four school districts collectively lost approximately $10.5 million as a result of the fraud. If convicted, Bradbury faces a maximum of 160 years imprisonment and a $2 million fine.
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