February 23, 2010
SEC Charges Sacramento Men with $10 Million Real Estate Fraud
The SEC today charged two Sacramento-area men with misappropriating approximately $10 million from more than 100 investors who were falsely promised that their money would be loaned to homebuyers and secured by real estate deeds of trust. The SEC alleges that Lawrence “Lee” Loomis solicited investments in investment funds managed by his father-in-law John Hagener. Loomis told investors they were investing in safe “liquid high-yield accounts” that would earn 12 percent returns guaranteed by a third party. The SEC’s complaint alleges that Loomis and Hagener instead used the money primarily to prop up Loomis’ other failing businesses. The SEC further alleges that Loomis paid himself hundreds of thousands of dollars from companies that received investor money and Hagener received more than $190,000 for managing the funds even though he was misappropriating investors’ money to fund other businesses.
In its federal court action against Loomis, Hagener, Loomis Wealth Solutions, LLC (“LWS”), and Lismar Financial Services, LLC (“Lismar”), the SEC alleges Loomis, LWS, Hagener and Lismar violated Sections 5(a), (c), and 17(a) of the Securities Act of 1933 (“Securities Act”) and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder. The SEC also alleges Hagener and Lismar violated Sections 206(1), 206(2), and 206(4) of the Advisers Act and rule 206(4)-8 thereunder, and, in the alternative, that Hagener aided and abetted LWS, Loomis and Lismar’s violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Lismar’s violations of Sections 206(1), 206(2), and 206(4) of the Advisers Act, and Rule 206(4)-8 thereunder. The SEC seeks injunctive relief, disgorgement of ill-gotten gains, and monetary penalties.
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I fell sorry for these people that got robbed. Doesn't anyone take the name "Wealth Solutions" as a major red flag before giving out money. Might as well call the company "Swamp Land and Bridge Investments".
Posted by: Attorney Greg Livingston | Feb 23, 2010 3:00:23 PM