Monday, October 12, 2009

Kelly G Rogers sued by the SEC in 2007

On July 18th, 2007, the Securities and Exchange Commission filed the lawsuit; Securities and Exchange Commission vs. Global Finance & Investments, Inc Case No; 4:07cv346. This lawsuit specifically named Kelly G Rogers as a Plaintiff.

The United States Securities and Exchange Commission (“Commission”) files this Complaint against Defendants Global Finance & Investments, Inc.; Charles R. Davis, William F. Dippolito; Lucre Fund, LLC, JTA Enterprises, Inc.; William H. Clark; Level Par Investments, LLC; Kelly G. Rogers; Sterling Meridian, LLC; Ronald J. Linn; and Glenn Maske.

Kelly G Rogers involvement had been discovered by the SEC while they conducted an investigating into the "Travis Correll" Ponzi Scheme. The SEC shut down this operation in December of 2005. During the SEC research,  they came across a deposit into CR Davis's account in the name of Level Par. This caused the SEC to reach out and investigate Level Par. This contact by the SEC resulted in the following letter being sent out to all 35 Level Par Investors in August of 2006. Seems that Kelly Rogers was an active participated in the Travis Correll Ponzi scheme. In Rio Grande Mining vs. Kelly Rogers and Carrie Rogers, Plaintiffs claim that Rogers embezzled company funds and invested in the Correll scheme, having the profits paid to his personal account.

According to the complaint; Rogers’s fraudulent offering;

In January 2006, Clark told Kelly G Rogers that Clark had invested with Global Finance and was receiving profits from Global Finance’s program. In fact, drawing from the representation in Davis’s December 20, 2005 joint venture amendment, Clark represented to Rogers that he had $100 Million invested in the Global Finance investment program.

In February 2006, after Kelly G Rogers expressed an interest in participating in Global Finance’s program, Clark introduced Rogers to Davis. According to Rogers, Davis offered him a “totally secure” high-yield program involving the purchase and sale of bank debentures that paid monthly returns of up to 25 percent. Davis touted the fact that the funds would be safely deposited in an attorney’s trust account and would not be withdrawn until an actual transaction commenced or instrument was purchased.

In February 2006, Rogers was the managing member of Level Par and its sole contact with Global Finance. Rogers, using Level Par as a pooling vehicle, conducted an offering, and invested the proceeds with Global Finance. Based on Davis’s representations, Rogers prepared Level Par’s offering documents, promising investors monthly returns ranging from 3 to 10 percent. Rogers orally represented to Level Par investors that their principle was not at risk because it remained in an attorney’s trust account. In many cases, Lawyer Kelly G Rogers personally guaranteed funds invested by those in his Networking business, many who were sucked into his deals based on the relationship developed via the “Business”. Rogers also told investors that the funds would be used as collateral to trade in various bank debentures or mortgage backed securities. Rogers told one investor that “the World Bank would have to collapse to lose his investment”. Rogers raised $4.7 Million from approximately 35 investors and wire transferred all of it to Global Finance in February or March of 2006.

Rogers knew that Davis’s claims were fraudulent. First, Rogers was an investor in Correll’sheme, a similar high-yield investment program, which had ceased making promised payments. Also, Rogers was on notice that these investments were scams when he learned of the Commission’s allegations in the Correll civil action in which Robbie Gowdey, Kelly G Rogers’s friend and neighbor, was charged with violation of the federal securities law. To illustrate the friendship, Rogers had been assigned as the trustee to Robbie Gowdey’s family Trust account. Robbie Gowdey passed away on January 8, 2009.

On July 13, 2006, Global Finance notified Level Par that it had terminated their agreement and identified $775,000 in previous payments. When Level Par’s other members received Global Finance’s notification, they realized that Rogers had misappropriated $200,000 belonging to their investors and removed Rogers from Level Par.

Claims Against : Kelly Gordon Rogers

1. Violations of Sections 10(b) of the Exchange Act and Rule 10b-5.

2. Violations of Sections 17(a) of the Securities Act.

3. Violations of Sections 5(a) and 5(c) of the Securities Act.

4. Permanently enjoins Kelly Rogers from future violations of 5(a), 5(c) and 17(a) of the securities act.


On April 9, 2007 agrees to a “Consent of Defendant Kelly G. Rogers”.

1. Defendant Kelly G. Rogers waives services of Summons and the Complaint in this action, enters a general appearance, and admits the Court’s jurisdiction over Defendant and over the subject matter of this action.

2. Without admitting or denying the allegations of the complaint(except as to personal and subject matter jurisdiction, which Defendant admits), Defendant hereby consents to the entry of the Agreed Final Judgment as to Kelly G. Rogers in the form attached hereto and incorporated by reference herein, which, among other things;

• Permanently restrains and enjoins Defendant from violations of Section 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated there under;

• Orders Defendant to pay disgorgement in the amount of $100,000, plus prejudgment interest thereon in the amount of $3,360; and

• Orders Defendant to pay a civil penalty in the amount of $50,000 under Sections 20(d) of the Securities Act and Sections 21(d) of the Exchange Act.

You can download the “CONSENT OF DEFENDANT KELLY G. ROGERS” by clicking on the link. The question now becomes; did Rogers knowingly violate the terms and conditions set forth by the SEC on April 9th, 2007 when he sold the deal called Falcon Energy, LLC- -Buck Hamilton Series" or any other of these schemes that took place at or around April of 2007?

These and many more questions will be answered in the weeks and months ahead as the lawsuits begin to play out in courts. As of today, Level Par investors are still waiting for the return of their funds. In 2007, the SEC turned over $7.2 Million recovered from the Global Finance scheme and assigned Hays Financial Consulting to handle the trust. Keep in mind; while these investments were made in 2006, the final distribution has still not been made in October of 2009. Many families have been financially devastated by the schemes that were solicited for by Kelly Rogers.

Stay tuned.

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