Sunwest Management, Inc., et al.
On March 10, 2009, the SEC obtained a preliminary injunction against Sunwest Management, Inc., its former President and CEO, Jon M. Harder and several related entities. According to the complaint, Sunwest raised at least $300 million from more than 1,300 investors nationwide by promising a steady income stream and touting its success in running retirement properties. The SEC alleged that Sunwest told investors they would be investing in a particular property that would generate profits to pay them approximately 10 percent annual returns and Sunwest had a track record of never missing a payment. According to complaint, Sunwest concealed from investors that at least half of the properties had lost money, and that it was by commingling all of its finances and making investor payments from this pot of cash.
For more information about the SECís action, you can read Litigation Release Nos. 20920 (Mar. 2, 2009) and 20951 (Mar. 13, 2009).
The Court appointed Michael A. Grassmueck as Receiver. To learn more about the Receivership, you can visit the Receiverís website.