WASHINGTON — The SEC charged Gordon B. Grigg and his firm ProTrust Management Inc. for allegedly defrauding clients out of at least $6.5 million and misrepresenting that their money was invested in the federal government's Troubled Asset Relief Program and other securities that do not exist.

The SEC alleged that Grigg obtained control over funds of at least 27 clients since 2007 and falsely claimed to have invested their money in securities described as "private placements." Grigg created fraudulent account statements reflecting his clients' ownership of these non-existent securities, the SEC said. He also began falsely claiming in December that ProTrust had the ability to invest client funds in government-guaranteed commercial paper and bank debt as part of the TARP program. Grigg also falsely claimed to have partnerships and other business relationships with several of the nation's top investment firms.

Katherine Addleman, regional director of the SEC's Atlanta regional office, said "Grigg and ProTrust preyed upon investors' desire for safety by claiming associations with reputable investment firms and the government's TARP program. In this case, not only were such claims false, but there is in fact no program in which investors can buy debt guaranteed by the TARP program."

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.