The Securities and Exchange Commission (SEC) issued a press release today announcing that it had
charged a Monticello, N.Y.-based investment adviser with fraudulently offering and selling securities in two upstate New York real estate funds he managed.
According to the SEC, Lloyd v. Barriger allegedly made misleading claims regarding the Gaffken & Barriger Fund (G&B Fund) by claiming that it was a safe and liquid investment and by guaranteeing a minimum annual return of 8 per cent. Moreover, Barriger allegedly raised money from investors in Campus Capital Corp. “to prop up the ailing G&B Fund without disclosing that was how their money was actually being used.” Barringer allegedly used the funds from Campus Capital Corp. to redeem investors of the G&B Fund at the guaranteed return of 8 per cent since the G&B Fund was collapsing.
The SEC seeks to “[enjoin] Barriger from future violations of the foregoing provisions and ordering him to pay civil penalties and disgorgement of ill-gotten gains with prejudgement interest.”