U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20327 / October 11, 2007
SEC v. Robert Ray White Samples, Pot O' Gold Financial Services, LLC, and Cristella Treece Samples, Civ. No. 07-CV-02081 LTB-CBS (D. Colo.).
SEC Brings Fraud Charges and Obtains Emergency Relief Against Robert Ray White Samples
The Securities and Exchange Commission charged Robert Ray White Samples ("Samples"), of Parker, Colorado, with misappropriating investor funds through two fraudulent investment schemes. According to the Commission's complaint, filed October 4 in federal district court in Denver, Colorado, from at least September 2002 through September 2006, Samples, operating through his company, Pot O' Gold Financial Services, LLC ("POG"), used material misrepresentations to raise at least $1,033,597 from 31 investors, including seniors, in two pooled investments. On October 11, the Court entered an order, with the defendants' consent, granting a preliminary injunction against Samples and POG, and freezing their assets and ordering an accounting.
The complaint alleges that Samples offered and sold almost $1 million worth of POG's Private Capital Accounts to the public. Samples represented to investors that funds placed in Private Capital Accounts would be pooled together and invested primarily in fixed income securities and secondarily in an auto loan program under Samples' management to generate returns. The complaint also alleges that Samples sold interests worth almost $65,000 in POG's Golden Investment Club ("Club"). Samples represented to Club investors that he would pool their funds together in a brokerage account for investment in securities, which he would manage in exchange for an advisory fee. According to the Commission's complaint, Samples' representations to investors were false and he misappropriated a large portion of the funds he received to pay for personal expenses such as a new home, two timeshare condominiums, automobiles, and personal credit cards.
The Commission's complaint alleges Samples violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act"); Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder; and Sections 206(1) and (2) of the Investment Advisers Act; and POG violated Sections 5(a), 5(c), and 17(a) of the Securities Act; Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and Section 7(a) of the Investment Company Act. The Commission is seeking a permanent injunction, disgorgement plus prejudgment interest, and civil penalties against Samples and POG. The Commission also names as a relief defendant, Cristella Treece Samples, Samples' wife, who received assets through Samples' and POG's fraud.