August 28, 2008
SEC Settles Fraud Charges Alleging Real Estate Investment Fraud
The federal district court for the Central District of California recently entered an order permanently enjoining Robert Thomas Fletcher III (Fletcher) from violating the antifraud and registration provisions of the federal securities laws. The SEC's complaint alleged that Fletcher was the chief executive officer, chairman and president of ProVision, a company that purportedly provided continuing education and support to investors through seminars and workshops focusing on real estate investing, stock investing and other wealth-building strategies. The order against Fletcher also requires him to disgorge $5,000,000, plus prejudgment interest, and pay a civil money penalty of $130,000. According to the SEC's complaint, ProVision and Fletcher fraudulently raised millions of dollars from investors, which Fletcher used to support his lavish lifestyle. According to the complaint, ProVision and Fletcher falsely claimed to own or control, or have the ability to acquire, yachts, real property, and millions of tons of a mineral substance called “humate,” which they fraudulently claimed was worth $137,000,000.
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