U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19760 / July 13, 2006
Sherwin P. Brown, Jamerica Financial, LLC and Brawta Ventures, LLC, Civil Action No. 06-1213 (D. Minn.) (Magnuson, J.)
The Securities and Exchange Commission ("Commission") announced that on July 6, 2006, Judge Paul A. Magnuson of the United States District Court for the District of Minnesota entered an Order appointing Minneapolis attorney Nauni Manty, of the law firm Rider Bennett, LLP, as receiver over Brawta Ventures, LLC ("Brawta"). The Order grants Ms. Manty the authority to take control of Brawta's operations, funds, assets and property.
On March 29, 2006, the Commission filed a complaint against Sherwin P. Brown ("Brown"), Jamerica, Inc. ("Jamerica") and Brawta. The Commission's complaint alleged that Brown is the majority owner and President of Jamerica, a Minneapolis, Minnesota-based investment advisor. The complaint further alleges that Brown is also manager of Brawta, a purported private investment fund formed by Brown and Jamerica. The Commission's complaint alleges that Brown, Jamerica and Brawta raised at least $1.65 million from 53 investors, a number of whom are retired or near retirement, and defrauded the investors of Brawta by misappropriating at least $569,950 of investor principal, and using the diverted proceeds to pay for Brown's personal expenses and Jamerica's business expenses.
The Commission's complaint alleged that the defendants' conduct violated the antifraud and record keeping provisions of the federal securities laws. In addition to an injunction and asset freeze, the Commission's complaint also seeks the disgorgement of any investor funds defendants may have misappropriated as well the imposition of financial penalties.
Contact: Peter K.M. Chan, Assistant Regional Director 312-353-7410