The SEC has filed a complaint against an unlicensed California savings and loan association that is also registered as a credit union in Sweden for the sale of $9 million in allegedly fake securities.
The SEC said between June 2008 and May 2009, defendants with Sun Investment Savings and Loan solicited hundreds of investors in a multi-level marketing arrangement from several states including California, Texas, Arizona and Nevada. The firm also sold securities from its Web site that allegedly promised returns as high as $35,000 each month based on a $4,995 initial investment.
Sun Investment in Milpitas, Calif. purported to be a S&L, according to the SEC. In October 2008, the California Department of Financial Institutions issued a cease and desist order against the firm to stop doing business because it was unlicensed. Sun Investment is also registered with the Swedish Companies Registration Office as a credit union.
The SEC has sought a freeze on all of the defendants' assets and has appointed a receiver to recover the investors' funds.