California Man Caught in $18 Million Bond Scheme

A California resident has agreed to hand over almost $18 million to settle allegations in a Delaware federal court that he bilked approximately 200 investors in a bond scheme between 2007 and 2011, according to the Securities & Exchange Commission (SEC).

Andrew Proctor, acting through his company Atlas JG, is alleged to have raised $22 million by offering investors a return of between 8-9% on their investment. Most of the targeted investors came from Taiwan.

Proctor told investors that their returns would come from purchasing receivables from home-building contractors at a discount, then turning a profit when the builders eventually paid the invoices. Instead, less than 10% of the funds raised were used as promised, with the last legitimate purchase taking place in 2008. According to the SEC, the money was moved through a myriad of shell companies and accounts that made following the trail difficult.

Of the gains Andrew Proctor made, $3 million went to personal use, including mortgage payments, credit cards, and his children’s tuition. Another $7 million was sent to an associate in Hong Kong, and $3.1 million was invested in risky stock and options trades. About $11 million was used to make interest and principal payments to investors.

As part of his settlement, Proctor agreed to pay more than $5 million in fines plus disgorgement of $11 million plus interest.

Call a Los Angeles Securities Fraud Lawyer Today

If you invested with Andrew Proctor or Atlas JG, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles securities fraud lawyer today for a consultation to discuss your rights and options.