After all, what are friends for?
SEC v. Global Finance & Investments, Inc. et al. Case 4:07-cv-00346
18. "Kelly G. Rogers, age 47, is a resident of Frisco, Texas and was the managing member of Level Par until July 2006, when he was forced to resign after the other Level Par members discovered he had diverted Level Par’s funds to his personal bank account. Rogers was a member of the Texas Bar Association until April 2005, when his license was suspended for failure to pay Texas’ occupational tax". (Page 5 & 6)
SHERMAN DIVISION, Case SECURITIES AND EXCHANGE COMMISSION vs. GLOBAL FINANCE & INVESTMENTS, INC.
Page 11: Roger’s fraudulent offering:
43. 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 representations 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.
44. In February 2006, after Rogers expressed an interest in participating in Global Finance’s program, Clark introduced Kelly G 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 Davis touted the fact that the funds would be safely deposited in an attorney’s trust account and would not be withdrawn until an actual transaction commenced or an instrument was purchased.
45. In February 2006, Kelly G Rogers was the managing member of Level Par and its sole contact with Global Finance. Kelly G 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 three to 10 percent. Kelly G Rogers orally represented to Level Par investors that their principal was not at risk because it remained in an attorney’s trust account. Rogers also told investors that the funds would be used as collateral to trade in various bank debentures or mortgage backed securities. Kelly G 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 and March 2006.
46. Rogers knew that Davis’s claims were fraudulent. First, Rogers was an investor in Correll’s scheme, 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, Rogers’s friend and neighbor, was charged with violations of the federal securities laws.
47. Nevertheless, on February 13, 2006, Rogers caused Level Par to enter into a joint venture agreement with Global Finance, and a trust account agreement with Dippolito, containing terms similar to Clark’s and Schliemann’s agreement with Davis.
What do you think? Maybe you should ask those who've invested with Rogers in the past years to get the answer?
In the meantime, let's all look ahead to the February trial for justice to be served.