First Alleged Bailout Fraudster Charged

Gordon Burns Grigg, 46, of Nashville, Tennessee and his firm, ProTrust Management Inc., were charged yesterday with defrauding investors out of $6.5 million with fraudulent investments in the Troubled Asset Relief Program. The SEC has obtained a court order freezing the assets of Grigg and ProTrust. According to the SEC complaint, Grigg represented himself as a financial planner and investment adviser, but neither he nor his firm is registered with the agency or a state regulator. He fraudulently represented to clients, whose funds he had control over, that they were invested in the TARP.

Read the story here, here and here.

Read the SEC complaint here.