The Securities and Exchange Commission has permanently barred a former Minnesota financial advisor from the securities industry.
The U.S. District Court for the District of Minnesota on Aug. 17 in the civil action of SEC v. Renee Marie Brown entered a final judgment by consent against Brown that permanently enjoins her from associating with anyone within the investment community.
The SEC had accused Brown, 47, of Golden Valley, Minn., of defrauding clients into transferring their money into a bogus account called "Investors Income Fund X, LLC," and falsely representing that the fund was a bond fund with between 8% to 9% fixed annual returns.
The SEC claimed that Brown from July 2009 through March 2010 invested more than $1.1 million of clients' money into a bogus fund that Brown used to purchase a condominium and build-out office space for her new business.
The SEC complaint also alleged that Brown distributed some bogus "returns" to investors in order to further the fiction that the fund was a legitimate and successful investment opportunity.
Brown consented to issuance of the order without admitting or denying the SEC's order, except that she admitted the entry of the injunction.