The SEC brought an administrative action against Renee Marie Brown, a Minnesota-based investment adviser, finding that she defrauded clients into transferring their money to Investors Income Fund X, LLC.
According to the SEC, she falsely represented that the Fund was a bond fund with fixed annual returns of 8% or 9%. The SEC stated that she distributed bogus returns to investors in order to further the fiction that the Fund was a legitimate and successful investment opportunity. From July 2009 through March 2010, clients invested more than $1.1 million with the Fund, and that Brown, according to the SEC, used most of that money to, among other things, purchase a condominium and build-out office space for her new business.
Click http://www.sec.gov/litigation/litreleases/2010/lr21483.htm to access the administrative order.