Friday, January 11, 2008
The SEC obtained an order temporarily restraining Bryan S. Behrens and a private entity controlled by him, National Investments, Inc., from continuing to engage in the fraudulent offer and sale of securities. The federal district court for the District of Nebraska also froze the defendants' assets. The SEC alleges that Behrens and National Investments fraudulently raised approximately $6.5 million from approximately 20 investors, including senior citizens, offering promissory notes to investors and falsely claiming that the interest payable on the notes, approximately 9% interest per annum, would be generated from lending investors' money to others at a higher rate of interest. The SEC alleges that defendants operated a Ponzi-like scheme by using proceeds obtained from new investors to make payments to early investors. Behrens is further alleged to have misappropriated approximately $3.5 million for personal use, including financing renovations to his two homes, purchasing luxury vehicles, and transferring money to another company that Behrens owns.