Texas Couple Sues Over Losses in Alleged Ponzi Scheme, According to The Gibson Law Firm

      

The lawsuit filed on behalf of Jonathan David Jackson and Brenda Jackson alleges that they were recruited by twoTexas andCalifornia securities firms to invest in Diversified Lending Group, Inc. (DLG) which has been charged, along with founder Bruce Friedman, with fraud by the SEC.

According to the petition filed inTexas state court, the Jacksons were told in 2007 "...that their funds would be invested in real estate and mortgage loans and provided them with a 'Welcome Packet' that reassured them of the same." Instead, the lawsuit alleges, DLG used investor funds to purchase auction rate securities, support Friedman's "charitable foundation" and finance other non-real estate activities. Friedman also is accused of personally misappropriating millions to support his lavish lifestyle.

On March 4, 2009, the SEC charged Friedman and DLG with securities fraud and obtained an emergency court order to freeze DLG's assets. The SEC issued a statement acknowledging "investors were lured into this alleged scheme based on misrepresentations about the true nature of the securities." Cease and desist orders have been issued against DLG and Friedman in numerous states. To date, only about $400,000 of the $217 million invested in DLG has been recovered, according to the SEC.

Attorney Jason A. Gibson, of The Gibson Law Firm, stated, "The Jacksons, like many retirees and other prudent investors, were misled by the defendants who perpetuated the scheme by issuing quarterly 'updates' claiming that DLG was investing their funds in real estate and that their funds were growing. While the financial news lately focuses on the Madoffs and Stanfords of the world, the alleged fraud in this case is no less appalling. We hope to help the Jacksons recover their investments, and their peace of mind."

The lawsuit alleges violations of the Texas Securities Act, the Texas Deceptive Trade Practices Act (DTPA), fraud, breach of fiduciary duty, and negligence, and seeks treble damages under the DTPA, exemplary damages, and attorney fees.

The defendants are Safe Equity Planning, LLC, ofCarrollton, Texas; PRBA, Inc. ofLos Angeles; PRB Administrators, Inc., ofLos Angeles; Unifi Mutual Holding Co., ofLincoln, Neb.; Warner Corbett & Gutentag, ofLos Angeles; Polycomp Administrative Services, Inc., of Woodlands Hills, Calif.; Union Central Life Insurance Co., ofCincinnati, Ohio; Dennis Lawton, ofLos Angeles; Paul Brown, ofFriendswood, Texas; Mark Gutentag, ofLos Angeles; and Alistair Waddell, ofGlendale, Calif.

The case is "Jonathan David Jackson and Brenda Jackson v. Safe Equity Planning, LLC, et al.," in the District Court ofHarris County, Texas, 164th Judicial District (Cause No. 2009-41385).

SOURCE The Gibson Law Firm