The Securities and Exchange Commission (SEC) has charged Brewer Investment Group, LLC (a registered investment adviser), Brewer Financial Services, LLC (a registered broker-dealer), Brewer Investment Advisors, LLC (the parent company) and its top executives with the sale of $5.6 million fraudulent and unregistered promissory notes to 74 of its investors. According to the SEC, notes issued by FPA Limited, an Isle of Man company, were sold by Brewer Investment Group in an attempt to bail out the company from serious financial troubles, a fact that was misrepresented to investors. In fact, the company continued to sell the notes to new investors even after it had been unable to pay the promised interest to previous investors.
In addition, the manner in which the offering proceeds would be used was misrepresented to the investors. The offering materials for the FPA Limited notes failed to disclose to investors that Brewer would disburse 90% of the proceeds at its own discretion, and that the proceeds were being funneled into Brewer’s own company and controlling subsidiaries in order to help alleviate some of the company’s significant financial problems. As a result, the notes were far riskier than what was communicated to investors. Furthermore, the company misrepresented to investors that the investments were secured by collateral.
According to the SEC, Brewer Investment Group suffered consolidated losses of $3 million in 2008 and defaulted on a $2.5 million loan in January 2009. The SEC alleges that the notes were sold in an attempt to save the company from mounting losses at the expense of its customers. The company began selling the notes to investors in June 2009.
If you lost money in the FPA Limited promissory notes sold by Brewer Investment Group, contact the Law Offices of Blum Law Group at (954) 255-8181 or toll-free at 1-877-STOCKLAW.
Blum Law Group specializes in representing investors nationwide in securities fraud cases. We have years of experience successfully recovering investment losses for our clients.
For more information, feel free to visit our web site at www.stockattorneys.com.