Mid-America Foundation, Inc., Robert R. Dillie, et al.
On December 20, 2001, the SEC obtained a temporary
restraining order, asset freezes and other relief against Mid-America
Foundation and its Executive Director, Robert Dillie, to halt an alleged ongoing
securities scam that targeted elderly investors. According to the complaint,
since at least 1997, the defendants raised as much as $54 million from about
500 elderly investors nationwide through the purported sale of Charitable Gift
Annuities (CGAs), which were supposed to pay a periodic fixed sum incorporating
a guaranteed rate of return, with the remainder at death paid to charities
designated by the purchaser. Rather than investing the funds as promised, the
SEC alleged that Dillie used much of the money to make “Ponzi” payments to
investors and to support his extravagant lifestyle and consuming gambling
habit. For more information about the SEC’s action, you can read Litigation
Release No. 17290
(Dec. 21, 2001).
The Court also appointed Lawrence J Warfield CPA as
Receiver. For the latest information about the Receivership, you can visit the Receiver’s website.