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U.S. Securities and Exchange Commission

Rainmaker Managed Living, LLC, et al.

On August 22, 2005, the SEC obtained a temporary restraining order, asset freeze and other relief against Rainmaker Managed Living, LLC, Furman & Dilmaghani PC, Alireza Dilmaghani, James Joseph Conway and Sidney Levine in connection with an alleged Ponzi scheme.† According to the SECís complaint, between May 2004 and August 2005, the defendants fraudulently induced about 90 investors nationwide to invest about $9.1 million in Rainmaker. †

The SEC alleged that Rainmaker promised to use investor funds solely to acquire, build and refurbish assisted living centers for retirees.† In connection with the sale of the investment contracts, the SEC alleged that the defendants made several material misrepresentations and guaranteed annual returns of 25%, paid monthly.† Instead of using investor funds as promised, the SEC alleged that the defendants misappropriated more than half of investorsí funds for personal use and to make purported interest payments to investors.For more information about the SECís action, you can read Litigation Release No. 19347 (Aug. 24, 2005).

On February 17, 2006, the Court appointed John Cotton as Receiver over the Rainmaker entities.† For the latest information about the Receivership, you can visit the Receiverís website.


Modified: 01/16/2007