According to the SEC, none of the $5.6 million raised from investors was used to secure the bonds.
After the bonds expired in November 2015, the men allegedly continued to seek new investors.
The SEC also alleges that the men are still engaged in a “fraudulent” scheme to artificially inflate the value of the bonds, so that their brokerage firm will allow them to borrow against the bonds.
White, an Atlanta resident, is president and/or CEO of the Grand Empire Palace and Resort, CEO of White Investment Groups and Equities, manager of M&M Financial and CEO of GEPR Investments.
Zehner, also from Atlanta, is vice president of Grand Empire vice president of White Investment Groups and Equities and president of GEPR Investments.
Merandi, of Miami, serves as director of emerging capital markets for Grand Empire and the sole member, chairman and CEO of M&M Financial.
The SEC has charged the three men and the firms under their control with multiple counts of securities and wire fraud, and seeks permanent injunctions from future actions, an accounting of all Grand Empire bonds, their location and their transfers, civil penalties, disgorgement and a trial by jury.