The SEC charged South Carolina resident Dwayne Edwards with fraud for his role in a $62 million assisted living municipal bond offering.
On January 10, 2017 the SEC charged South Carolina business man Dwayne Edwards with fraud in connection with a series of municipal bond offerings that raised funds for assisted living centers across the south, in Georgia and Alabama.
Edwards was charged with comingling funds, diverting funds and improperly using funds which were raised to purchase and renovate the adult car facilities.
Dwayne Edwards with the help of his business partner Todd Barker (who has agreed to settle with the SEC) raised approximately $62 million in a series of nine bond offerings. The crux of the SEC’s complaint is that Edwards represented that the funds raised in each particular offering were to be used only for the facility covered under that offering. Instead, the complaint alleges that Edwards diverted the funds for use in other facilities, and to pay himself undisclosed fees.
The SEC asked for and was granted an asset freeze and temporary restraining order against Edwards and ordered a Receiver appointed to verse the finances of the individual senior care facilities.
The complaint filed by the SEC is not final, and until the allegations have been proven in a court of law, no adverse inferences should be drawn.
In June, 2017 the SEC reported a resolution of the litigation, with Edwards agreeing to pay penalties and refund an as yet to be determined sum In addition, Dwayne Edwards has consented to a bar from raising money in the municipal bond market.
The municipalities affected by the SEC action are Development Authority of Walton County, Douglas-Coffee County Industrial Authority, Cave Spring Housing Development Corporation, Savannah Economic Development Authority, Gainesville and Hall County Development Authority, The Medical Clinic Board of the City of Montgomery-1976 East, Development Authority of Columbus, Georgia, The Medical Clinic Board of the City of Opelika, Alabama
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you purchased bonds in one of the Dwayne Edwards related muni bond offerings call us today for a free, confidential consultation at (702) 380-3131.