Linus Unah – Fourth Estate Contributor
Washington, D.C., United States (4E) – The U.S. Securities and Exchange Commission (SEC) Monday announced fraud charges and an emergency asset freeze obtained against a South Carolina businessman accused of misappropriating funds he raised from investors.
The SEC alleged that Dwayne Edwards improperly merged money from several different municipal bond offerings to purchase and renovate assisted living and memory care facilities in Georgia and Alabama
Edwards, 54, allegedly went ahead to diverted investor money for personal use and to finance other unrelated bond offerings, according to the SEC.
Andrew M. Calamari, director of the SEC’s New York Regional office, said in a statement: “As alleged in our complaint, investors thought they were investing in a single senior housing project while their money was actually being used to fund an ever-expanding web of affiliated facilities and the personal expenses of Edwards and his friends and family,”
The SEC’s complaint, filed in a New Jersey federal court on Friday, also charges Edwards’s former business partner Todd Barker, who agreed to a settlement with monetary sanctions to be determined at a later date.
The court issued an order at the SEC’s request freezing the assets of Edwards and certain relief defendants, according to the news release posted on the SEC’s website.
The court also appointed a temporary receiver over the facilities.
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