U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

TLC Investments & Trade Co., et al.

On October 5, 2000, the SEC obtained a temporary restraining order, an asset freeze, and other emergency relief against Ernest F. Cossey and Gary W. Williams, and entities controlled by them, and Thomas G. Cloud and his company. The SEC alleges the defendants raised at least $156 million from more than 2,600 investors purportedly for the purpose of investing in distressed real estate. In actuality, the SEC alleges the defendants perpetrated an undisclosed Ponzi scheme. In related criminal actions, Cossey was sentenced to prison and ordered to pay restitution, and Williams has pled guilty and awaits sentencing.

The SEC has posted numerous litigation releases about this matter. You can find them by visiting the SEC's website and inserting the words "TLC Investments" in its search engine at the top of the page.

The court appointed Robb Evans & Associates as Receiver to liquidate the companies and to collect and distribute the assets. The Receiver has set up a website for investors that provides the latest information on the Receivership, including reports filed by the Receiver with the Court.


Modified: 09/24/2002