Wayward adviser is MIA; assets frozen

By Mark Schoeff Jr.

Jul 8, 2012 @ 12:01 am (Updated 2:01 pm) EST

A Georgia investment adviser who allegedly bilked clients out of $40 million in a private-placement fraud has disappeared, according to the Securities and Exchange Commission.

The SEC has frozen the assets of the adviser, Aubrey Lee Price, while the Atlanta office of the FBI and the Lowndes County sheriff's office conduct a manhunt.

Mr. Price sold shares in an unregistered investment fund — PFG LLC — and made illiquid investments in South American real estate and a faltering bank in southern Georgia, according to the SEC, which has filed a complaint in the U.S. District Court for the Northern District of Georgia.

A Georgia investment adviser who allegedly bilked clients out of $40 million in a private-placement fraud has disappeared, according to the Securities and Exchange Commission.

The SEC has frozen the assets of the adviser, Aubrey Lee Price, while the Atlanta office of the FBI and the Lowndes County sheriff's office conduct a manhunt.

Mr. Price sold shares in an unregistered investment fund — PFG LLC — and made illiquid investments in South American real estate and a faltering bank in southern Georgia, according to the SEC, which has filed a complaint in the U.S. District Court for the Northern District of Georgia.

FALSE STATEMENTS

In a 22-page letter last month, Mr. Price admitted that he sent false statements to investors and regulators claiming to have earned returns on the investments to cover up between $20 million and $23 million in losses, according to the SEC.

“Price raised nearly $40 million from investors and made woeful financial transactions that he hid from them,” William P. Hicks, associate director of the SEC's Atlanta office, said in a statement. “Now both the money and Price are missing.”

Mr. Price, who moved to Georgia from Florida's Manatee County, commenced the fraud in 2008, according to the SEC.

His fund promised “positive total returns with low volatility” in a range of investments, including equities traded on U.S. markets.

mschoeff@investmentnews.com Twitter: @markschoeff

  @IN Wire

Jul 22 06:17PM
Clips from Today?s Halftime Report http://t.co/lFZuC2HIlS
Jul 22 05:28PM
New ranking puts corporate stalwarts ahead of up-and-comers with the best 401(k)s http://t.co/ly5IZ5h0mQ

Career Center

Explore your opportunities and be informed for your next move.

Company Type
Firm Type
Clearing Firm
Presented by