The Securities and Exchange Commission (SEC) has filed a Complaint against Bobby M. Collins, a Wichita Falls, Texas resident. The SEC Complaint alleges that Mr. Collins raised nearly $4.6 million from at least 36 investors, most of whom were over the age of 65, to invest in what was a classic Ponzi scheme orchestrated through his unincorporated retirement planning business, Collins Insurance Companies a/k/a BMC Retirement Planning.
The SEC alleges that Bobby Collins lured investors across Texas and Oklahoma by offering high-yield, unsecured promissory notes promising returns typically of 25% over a 12, 18, or 24-month term. Mr. Collins also allegedly enlisted the assistance of an Oklahoma stockbroker to find additional investors, providing hundreds of thousands of dollars in additional investor funds in exchange for over $100,000 in referral fees.
According to the SEC Complaint, Mr. Collins used most of the investors’ funds to pay returns to earlier investors. Further, the Complaint alleges that Mr. Collins used the remaining investors’ funds for his personal use, including luxury car payments, cash withdrawals, personal retail expenses and credit card and loan payments.
For allegedly committing fraud by employing a Ponzi scheme to defraud and deceive investors, the SEC is seeking a permanent injunction, disgorgement plus prejudgment interest and civil penalties for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Attorney Pearce began his career at the SEC as an enforcement attorney more than 40 years ago. His SEC defense law practice clients have included public companies and their officers and directors, broker-dealers, investment advisors, and individuals being investigated in connection with their personal securities transactions. He has broad, extensive experience in matters arising from alleged 10b-5 fraud violations including, “insider trading,” Section 16(b) “short swing profit,” and Section 14 “proxy rule” violations as well as Section 9 “market manipulation” cases.
Have you have been contacted by the SEC or believe that you may be subject of an investigation? If so, call Mr. Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce defends various entities and individuals who may be the subject of an SEC investigation or enforcement action regarding their alleged involvement in securities laws violations.
This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to representing investors and financial industry professionals throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.