Well folks, I guess the trend is still continuing. Now POS Dream Home, LLC has been charged with securities violations and investment fraud. Take a look ...
BALTIMORE, MD (August 15, 2007) - Attorney General Douglas F. Gansler announced today that the Securities Division of his office has issued a Summary Order to Cease and Desist against POS Dream Home, LLC, Metropolitan Grapevine, LLC, CEO Andrew H. Williams, and agent Laveda Whitfield, and their officers and directors, all operating out of Laurel, Maryland. The Order requires that the individuals and companies immediately cease and desist violating Maryland's securities laws and halt the operation of an investment program involving the promised payment of homeowners' mortgages in five years.
"This action orders POS Dream Home, Williams, and their agents and officers to cease any operations in Maryland until a hearing can be held in this matter," said Attorney General Gansler. "In the meantime, this company will no longer be able to unlawfully solicit investors and risk the potential loss of their money."
The Securities Division's order alleged that POS Dream Home operated an unregistered promissory note investment program under the guise of a mortgage payment plan. Using personal sources and public meetings to solicit inquiries to Metropolitan Grapevine and POS by potential investors, agents would offer the opportunity to live mortgage free. In exchange for $5,000 plus a lump sum payment to POS, often of $50,000 or more, plus 50% of the ultimate value of the home, the company promised to pay off the home buyer's or owner's mortgage in full in five years or less. The money for the mortgage payments allegedly was generated from POS's investment in "POS cafes," which included ATMs, credit card readers, and other revenue-generating devices.
The order alleges that POS and its agents failed to disclose to investors material information such as the cafes' locations, past financial results, operating expenses, the lack of any registration of the investments, and the history of management personnel. As the result of a 2001 enforcement action by the Securities Division, Williams was enjoined and restrained from engaging in the securities business in Maryland.
Neither company, its notes, or its promoters is registered with the Securities Division as required by Maryland law.
The Securities Division brought the action not only to halt the registration violations, but also because of the material misrepresentations and omissions made in connection with the claims of the investment program.
"There is great risk of the loss of investors' money where there is no demonstrated source of income except other investors," said Attorney General Gansler. "In a climate of rapid change in home values, a program like this can increase risks to lenders and home owners."
Attorney General Gansler reminded investors that they can contact the Securities Division of his office at 410-576-6360 if they have questions concerning the status of investment promoters or the securities in which they plan to invest. Potential investors should thoroughly check out any investment opportunity by contacting the Securities Division regarding securities broker-dealers, agents, investment advisors, investment advisor representatives, financial planners, the registration status of securities, or to report suspected fraud.
Labels: investment fraud, mortgage programs, securities violations
