SEC Brings First TARP Fraud Case

SEC Brings First TARP Fraud Case - 1/29/2009

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright © 2001
Stanford Law School

2009 News and Press Releases

SEARCH

News	News 2009
HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

SEC Brings First TARP Fraud Case, Charges Nashville-Based Money Manager With Peddling Investments In Fictitious Government Securities
Neil Roland

FinancialWeek . January 29, 2009
_________________________________________________________________________

EXCERPT: In the first securities fraud case alleging deception about purported investments in the U.S. Treasury Department’s $700 billion bailout, an investment adviser was accused by regulators of defrauding clients out of $6.5 million. The Securities and Exchange Commission alleged that Nashville, Tennessee-based adviser Gordon Grigg and his ProTrust Management defrauded 27 clients by telling them the firm invested their money in federally-backed debt that was part of the Troubled Assets Relief Program. These securities do not exist, the SEC said. Commission spokesman John Nester said the case was the first brought by the agency alleging fraud in representations about TARP investments. No allegations of wrongdoing were made about the Treasury program. The TARP special inspector general Neil Barofsky assisted with the investigation and may coordinate on other probes, the SEC statement said. […] The $700 billion bailout was enacted last October to help financial institutions with troubled assets such as mortgage-backed securities and assist struggling homeowners facing foreclosure. About $350 billion was spent by the Bush administration.

Back to News page | Back to Archived News 2009 page | Back to Top

�