Gordon Burns Grigg, 46, of Nashville, Tennessee was formally indicted last week on charges he operated a Ponzi scheme with firm, ProTrust Management Inc., defrauding investors out of as much as $6.5 million with fraudulent investments in the Troubled Asset Relief Program (TARP). In January, the SEC 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 and guaranteed returns of as much as 12.5 percent. The Grigg case is the first TARP related fraud case being prosecuted by Neal Barofsky, the special inspector general for TARP - one of some 20 criminal probes he has initiated. Attorneys for Grigg say he will plead guilty to the mail fraud and wire fraud charges.Read FraudTalk's original post on this story here.
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