SEC Says Real Estate Fund Trafficked Bad Mortgages

Law360, New York (April 11, 2011, 3:19 PM EDT) -- The U.S. Securities and Exchange Commission sued a California wealth management company and two of its executives Thursday for allegedly using more than $10 million in customer funds to issue risky second mortgages while promising a safe investment vehicle.

According to a complaint filed in the U.S. District Court for the Central District of California, MAM Wealth Management LLC; its CEO, owner and Chief Compliance Officer Alex Martinez; and one of the firm's registered representatives, Rafael R. Sanchez, told investors that an investment in the MAM...
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