Thursday, March 25, 2010
New Mexico Real Estate Exec Accused Of Running $80 Million Ponzi Scheme
Douglas F. Vaughan, 62, of Albuquerque, New Mexico, and a prominent local real estate executive, has been accused by the SEC of operating a Ponzi-type investment fraud scheme that bilked investors out of some $80 million. According to the Securities and Exchange Commission, Vaughan, through his companies, The Vaughan Company Realtors and Vaughan Capital LLC, enticed investors with promissory notes with fixed rates of return between 10 and 25 percent for real estate investments involving distressed properties. Some 600 investors were defrauded, according to the SEC, dating back to 1993. Vaughan and his companies have reportedly filed for bankruptcy.
Read the SEC complaint here