AmeriFirst Funding, et al.
On July 2, 2007, the SEC obtained a temporary restraining order, asset freezes and other relief against Jeffrey C. Bruteyn and Dennis W. Bowden, and two entities they controlled, Amerifirst Funding, Inc. and Amerifirst Acceptance Corporation. The SEC also named two relief defendants – American Eagle Acceptance Corp. and Hess Financial Corp. – seeking return of investor funds they unjustly received. The SEC alleged that the defendants conducted a fraudulent investment scheme in which they raised as much as $55 million from hundreds of individuals, many of them senior citizens.
According to the complaint, the defendants lured investors into purchasing “Secured Debt Obligations” by claiming the SDOs were safe investments, guaranteed by a commercial bank and backed by several layers of insurance. The SEC also alleged the defendants told investors their funds would be used to create or purchase automobile financing receivables or placed in government securities or the highest-quality corporate bonds. The SEC alleged the defendants deceived investors by using very little of their funds for intended purposes. Instead, the defendants allegedly used investor funds to make speculative investments in the stock market, and misappropriated millions of dollars for their personal use.
For more information about the SEC’s action, you can read Litigation Release No. 20181 (July 5, 2007).
The Court also appointed William D. Brown as Receiver. Mr. Brown has set up a website where investors can read about the status of the Receivership.