Offering Fraud Crackdown Continues; Nearly $7 Million Sanction Obtained in Civil Injunctive Action

Defendant Wilson conducted offering frauds through the co-defendants, two companies he owned/controlled. Approximately $6.7 million was raised from approximately 120 investors who bought Diversified Group’s securities from September 2009 through October 2012, with funds used to make unsecured, imprudent loans to Wilson’s real estate business and misappropriated for various personal expenses. And Wilson raised additional funds for his real estate business through stock sales for American Realty Funds, which filed misrepresentations and omissions in reports with the Commission. Wilson was also criminally convicted and administratively barred.