Art Intellect, Inc., Patrick Merrill Brody, Laura A. Roser and Gregory D. Wood
On April 18, 2011, the SEC obtained an emergency temporary restraining order (TRO) and asset freeze in alleged offering fraud and Ponzi scheme orchestrated by Patrick Merrill Brody and Laura A. Roser through Art Intellect, Inc. d/b/a Mason Hill and Virtual MG, a company owned and controlled by Roser. †In addition to the TRO and asset freeze, the Court has appointed a Receiver, Wayne Klein, to preserve and marshal assets for the benefit of defrauded investors.
According to the complaint, operating through Mason Hill, Brody, Roser and Gregory D. Wood raised more than $2.5 million from approximately 75 investors, by selling investment contracts in Mason Hill in unregistered transactions.† The SEC alleges that the defendants told investors that Mason Hill would purchase distressed properties on their behalf, rehabilitate the properties, find renters for the properties and remit a guaranteed profit of 10 to 30 percent to them on a monthly basis. †Instead of using investor funds for the disclosed purposes, the SEC alleges they were used for Mason Hillís operations, to support Brodyís and Roserís lavish personal expenses and to purchase properties for earlier investors.
For more information about the SECís action, you can read Litigation Release No. 21937 (Apr. 18, 2011).
You can learn more about the status of the Receivership by visiting the Receiverís website.