Global Express Capital Real Estate Investment Fund I, LLC et al.
On December 17, 2003, the SEC obtained a preliminary injunction and other relief in connection with a Ponzi-like investment scheme operated by Connie S. Farris and Dawn M. Reese and three entities owned or controlled by Farris. The SEC alleged that the defendants raised at least $48 million from about 600 investors nationwide, purportedly to purchase interests in mortgage loans and trust deeds. The defendants promised investors annual returns of 12 percent. The SEC further alleged that when the Fund failed to generate sufficient interest income to pay investors, the defendants used cash from new investors to pay the monthly investor distributions. For more information about the SEC's action, you can read Litigation Release Nos. 18491 (Dec. 5, 2003) and 18513 (Dec. 18, 2003).
The Court also appointed James H. Donell as Receiver. For the latest
information, you can visit the Receiver's