Argyll Accused Of Running $16M Stock-Backed Loan Scam

Law360, New York (March 15, 2012, 5:40 PM EDT) -- The U.S. Securities and Exchange Commission on Thursday accused a unit of private equity investor The Argyll Group of orchestrating a stock-collateralized loan scheme that allegedly defrauded borrowers out of more than $16 million.

SW Argyll Investments LLC, doing business as Argyll Investments LLC, lured customers into trading stocks at a discount for a loan from Argyll, which then sold off the shares at full price to fund the loan and pocketed the difference, the SEC alleges in a complaint filed in California federal court....
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