SEC Sues Real Estate Co. Over $25M House of Cards

Law360, New York (November 23, 2009, 3:57 PM EST) -- The U.S. Securities and Exchange Commission has filed civil fraud charges against Texas real estate company Capital Mountain Holding Corp. and its owner Derek Nelson, alleging they operated a $25 million Ponzi scheme.

In a complaint filed Friday in the U.S. District Court for the Northern District of Texas, the SEC claims CHMC and Nelson falsely promised investors they would use the proceeds of a securities offering to buy residential houses at discounted prices and resell them for a profit.

But instead of investing the funds...
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