SEC Halts Fraudulent Mortgage Investment Scheme
May 23, 2017
The SEC has filed an emergency action to stop a fraudulent mortgage investment scheme. The SEC’s complaint, filed under seal in federal court in Sherman, Texas on May 15, 2017 and unsealed on May 19, 2017, alleges that Frisco, Texas resident Thurman P. Bryant, III and his company, Bryant United Capital Funding, Inc. (BUCF), have raised approximately $22.7 million from approximately 100 investors across the country. Bryant falsely promised these investors a risk-free, guaranteed minimum 30% annual returns on investments Bryant claimed he would make in the mortgage industry. However, as the complaint alleges, Bryant commingled investor funds in a single deposit account and intentionally misappropriated $4.8 million to cover personal expenses, including rent and luxury car payments, a housekeeper, meals and groceries, private school tuition, horse riding expenses, and for an apartment; funneled approximately $16.1 million to Houston, Texas-based relief defendants Arthur F. Wammel and Wammel Group for high-risk securities trading and investments in various businesses; sent $1.37 million to supposed concert promoter Carlos D. Goodspeed d/b/a Top Agent Entertainment for no apparent legitimate or lawful reason; sent $140,000 to Thurman P. Bryant, Jr. as purported but unearned investment returns; and made Ponzi payments to investors.
At the Commission’s request, the Court appointed a receiver over the defendants' assets and entered a temporary restraining order, asset freeze, and other equitable relief.
The SEC’s investigation was conducted by Jason Reinsch and Carol Stumbaugh of the SEC's Fort Worth Regional Office. Barbara Gunn supervised the case. Jessica Magee and Mr. Reinsch will lead the litigation.
More information is available here.