This is an update on the action by the United States Securities and Exchange Commission (“SEC”) against Christopher Brogdon, who, according to the SEC, operating through at least 43 entities that he owns or controls, fraudulently raised $190 million from investors in 54 conduit municipal bond and private placement offerings for projects involving purchasing, constructing, renovating, leasing, managing and selling nursing homes, assisted living facilities, and retirement housing.
On November 20, 2015, the SEC asked the U.S. District Court for the District of New Jersey to issue an Order:
1) appointing a receiver over certain Brogdon entities, Brogdon facilities or projects, and the Brogdon Family LLC,
2) temporarily and preliminarily enjoining Brogdon from future violations of the federal securities laws,
3) freezing the assets of Brogdon and his wife,
4) requiring an accounting,
5) prohibiting Brogdon from destroying or altering any documents,
6) permitting the SEC to conduct expedited discovery, and
7) prohibiting the filing of any bankruptcy, foreclosure, or receivership actions by or against any entity subject to the receivership.
On the same day, November 20, the Court issued an Order preliminarily granting most of the SEC’s request pending a full hearing on the matters.
On Friday, December 11, 2015, the Court conducted such a hearing. The Court also considered the SEC’s requested that the Court
1) draw an adverse inference against Brogdon and his wife based on their invocation of their Fifth Amendment privileges against self-incrimination, and
2) preclude Brogdon and his wife from introducing certain testimony and evidence at the December 11, 2015 hearing. At the conclusion of the hearing, the Court directed the parties to submit Findings of Fact and Conclusions of Law by December 18, 2015, and extended the current restraints to remain in place for an additional fourteen days. A ruling from the Court is expected in the near future.
The lawyers at Peiffer Wolf Carr & Kane have been talking to investors who purchased municipal bonds and private placement offerings issued by Brogdon related entities and are prepared to take legal action on behalf of investors. If you invested in municipal bonds or private placement offerings issued by entities related to Brogdon and wish to discuss your rights, please call (585) 310-5140 or contact us by email at firstname.lastname@example.org.