SEC Halts Debt Offering by Amerifirst Funding, Alleging Fraud Targeting Elderly Investors

The Securities and Exchange Commission filed an emergency action in a Dallas federal court against Amerifirst Funding, Inc. and Amerifirst Acceptance Corporation alleging fraud.

The SEC contends that the offering of securities, known as Secured Debt Obligations (“SDOs”), are notes purportedly secured by automobile financing receivables created or purchased by the defendants. The district court entered temporary restraining orders suspending the offering, freezing the defendants’ assets and requiring an accounting and repatriation of assets.

法院还任命了一个接收者，以确保投资者的资产，并命令被告保存文件并提交加速发现。SEC表示，该裁决已冻结了该投资公司的资产，该公司自2006年初以来一直指责该骗局针对老年人，主要是德克萨斯州和佛罗里达州的骗局。

The complaint says the firm violated securities laws, including representing the investments were virtually risk-free when the fund instead invested in risky high-yield bonds, stocks and options. The firm’s managing director is also accused of spending $4.7 million of investors’ money for personal use, including land, cars, travel and child support.

Other individuals connected with Amerifirst and subsidiaries of the firm were also named in the civil action. An attorney for individuals named said they would vigorously contest the accusations.

SEC v. Amerifirst Funding, Inc., et al. (U.S.D.C., Northern District of Texas, Dallas Division, Civil Action No. 3:07-CV-1188-D)

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