Robert Stinson, Jr., et al.
On June 29, 2010, the SEC obtained an order granting a temporary restraining order, asset freezes and other emergency relief against Robert Stinson, Jr. and several entities he controlled. According to the complaint, Stinson and his co-defendants perpetrated an offering fraud and Ponzi scheme in which at least $16 million was raised from more than 140 investors.
The SEC alleged that from at least 2006 through the present, Stinson, primarily through two of his companies, Life’s Good, Inc. and Keystone State Capital Corporation, sold purported “units” in four Life’s Good private real estate hedge funds. (Life’s Good Funds). The SEC alleged that Stinson falsely claimed the Life’s Good Funds generated annual returns of 10 to 16 percent by originating more than $30 million in commercial mortgage loans and other investment income gained on the sale of foreclosure and investment properties. In reality, the SEC alleged that Stinson stole investor funds for his personal use, transferred money to family members and others and used new investor proceeds to make payments to existing investors.
The Court also froze the assets of five named relief defendants – Susan L. Stinson, Christine A. Stinson, Michael G. Stinson, Laura Marable and First Commonwealth Service Company.
For more information about the SEC’s action, you can read Litigation Release No. 21584 (June 29, 2010).
On September 13, 2010, the Court appointed Kamian Schwartzman as Receiver. For the latest information about the Receivership, you can visit the Receiver’s website.