The SEC has obtained an emergency freeze on the assets of Christopher F. Brogdon, who falsely told clients he was seeking investments to purchase and renovate senior living facilities.
He raised $190 million through dozens of municipal bond and private placement offerings in which investors supposedly earned interest from revenues generated by the nursing home, assisted living facility or other retirement community projects supported by their investment.
Instead of investing the money as he said, Brogdon secretly commingled investor funds for the different senior living projects and then diverted the money to other business ventures of his, some of which were struggling financially, and to personal expenses, the SEC says.
According to the SEC’s complaint, Brogdon has been making payments to investors by borrowing money from third parties, using proceeds from other offerings, and drawing down on personal lines of credit.
The SEC is seeking a return of ill-gotten gains and to bar Brogdon from acting as an officer or director of any public company.