CEO On Trial In Biggest South Carolina Fraud Case

Law360, New York (January 18, 2007, 12:00 AM EST) -- The securities fraud trial of a former executive of a South Carolina mortgage lender got underway Wednesday, as prosecutors attempted to show that Ronald Sheppard was responsible for the biggest bankruptcy in state history.

Sheppard, who was chief executive of HomeGold Financial Inc., is charged with three counts of securities fraud in connection with the collapse of the company and its subsidiary, Carolina Investors Inc. Eight-thousand investors lost $275 million when Carolina Investors closed its doors in March 2003, a grand jury investigation revealed.

The bankruptcy...
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