The SEC filed a complaint against James S. Ward of JSW Financial, along with five other officers, accusing his firm of using money from investors to boost their failing real-estate projects. While scamming their investors, they also hid more than $17 million in losses from them as well.
"The defendants told investors, many of whom were seniors, that their investments were safe because they were being used for secured real estate loans," said Marc Fagel, director of the SEC's San Francisco Regional Office. "They betrayed investors' trust and squandered nearly all of investors' money trying to keep their own failing operations afloat."
2 days ago, the SEC filed the charges, seeking penalties and payment of the “ill-gotten gains.” The SEC also alleges that the men used more than $900,000 of investors money to pay for their own homes.
JSW Financial has been out of business since 2008 after filing bankruptcy.
Sources:
Mecury News: http://www.mercurynews.com/breaking-news/ci_17677961?nclick_check=1
Dispatch.com: http://www.dispatch.com/live/content/business/stories/2011/03/24/delaware-man-accused-of-fraud-in-sec-lawsuit.html?sid=101
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Couldn't agree more
