Thursday, January 29, 2009
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 SEC complaint here.