Lawson Financial and Its CEO, Underwriter’s Counsel Settle Brogdon Bonds Charges with SEC
April 5, 2017 – The investors’ rights attorneys at Peiffer Wolf Carr & Kane are investigating municipal bonds issued by Lawson Financial Corporation (“Lawson”) and managed by Christopher Brogdon. These experienced litigators are currently prosecuting a case on behalf of investors in certain Brogdon bonds.
The Securities and Exchange Commission (“SEC”) announced a settlement today with Robert Lawson, CEO of Lawson Financial, Lawson itself, and John T. Lynch, Jr., who had been underwriter’s counsel to Lawson. All three had been charged with failing to conduct reasonable due diligence on the municipal bond products managed by Christopher Brogdon. Specifically, Lawson failed to ensure that the Brogdon borrowers followed the ongoing disclosure requirements of Rule 15c2-12. The offering documents also falsely represented that Lynch was authorized to practice law at the time of the initial offerings. This abdication of the gatekeeper obligation of an underwriter allowed investors to purchase fraudulent bond offerings and caused those investors great harm when the fraud became public.
Under the settlement, Lawson will pay $200,000 in disgorgement and an additional $200,000 in penalties, with an $80,000 penalty or Lawson himself. Lynch will pay a separate, $45,000 penalty. Brogdon himself has also been charged with fraud by the SEC; a court ordered him to repay $85 million to investors.
If you purchased a municipal bond managed by Brogdon, the investors’ rights attorneys at Peiffer Wolf Carr & Kane want to hear from you. Contact Attorney Jason Kane or James Booker, at 216.589.9280, or via email at firstname.lastname@example.org for an evaluation of your potential recovery options.