Jack Brown, Jules Fleder et al.
On December 8, 2004, in coordination with state regulators, the SEC filed an emergency action in United States District Court in Tyler, Texas, alleging that four individuals (including Jack Brown and Jules Fleder), through a number of entities, fraudulently raised approximately $6 million. The SEC claimed the defendants sold bogus securities to investors primarily in the Tyler area by promising to generate investment returns through the development of real estate in Texas, Virginia, and South Carolina. In fact, according to the SEC, the defendants spent little, if any, of the investors' money to develop land, and instead used it to make Ponzi payments to investors, support their own extravagant lifestyles, and funnel money to companies they controlled. For more information about the SECís action, you can read Litigation Release No. 19005 (Dec. 17, 2004).
The Court also granted the SEC's motion for the appointment of a Receiver, and selected Dennis Roossien to collect and preserve investors' assets. If you have questions about the Receivership, you can contact Mr. Roossien at www.flederreceiver.com.
The Receiver has determined that the Tyler scheme was one of many similar schemes perpetrated by Jules Fleder, who was working in concert with a number of investment advisors, such as, Jack Brown. The Receiver has prepared two interim reports that discuss these further schemes, which collectively raised over $27 million. The Receiver is continuing to investigate this matter.
In parallel federal criminal actions, Jack Brown and Jules Fleder pled guilty and are currently in prison.