International Law

Who Else Needs Financial Freedom?

Pacific Wealth Management Alleged to be a Ponzi

According to the SEC's Press Release:

"The Securities and Exchange Commission ('Commission') on Wednesday, February 27, 2008, filed civil securities fraud charges stemming from a $10 million securities fraud that victimized over 75 investors from several affinity groups, including the Southern California Filipino community, fellow church members, and military personnel.

The Commission's complaint, filed in U.S. District Court in Riverside, California, alleges that James B. Duncan, Hendrix M. Montecastro, and Maurice E. McLeod, operating through Murrieta, California-based Pacific Wealth Management, LLC ("PWM") and Murrieta-based Stonewood Consulting, Inc., promised investors "financial freedom" within three years in exchange for control over their finances.

The defendants offered investors securities in the form of investment contracts to purchase and maintain investment homes on behalf of investors.

The complaint further alleges that James Duncan raised $1.2 million in a separate offering of preferred membership units in Total Return Fund, LLC, to approximately 20 investors.

The complaint alleges that the proceeds raised in both offerings were commingled and used to run a Ponzi-like scheme that fell apart in late 2006."

Financial freedom. Well, what are the stiffs complaining about - they are free from any finances being as they don't have any money.

Note how the use or play off of a well known slogan, "Freedom 55", acquires authority for the criminal's representations.

"Financial freedom" is touted by many mutual funds.

Strangely none of these financial planners tell us the truth - cut back on your needless expenses, plant and enjoy the roses, and trade down your car.

There is your financial freedom, my fine friend.

Full post as published by Misleading Advertising Law on February 28, 2008 (boomark / email).