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Franklin's Gordon Grigg, CEO of ProTrust Management, was accused Wednesday of bilking some $6.5 million from investors in one of the first known schemes aimed at profiting from the federal bailout. The Securities and Exchange Commission has frozen the assets of Grigg and his company.
The SEC is alleging that Grigg, whose company website
is currently down--but links advertise life coaching and consulting (snicker)-- told investors that their investments would be funneled into the Troubled Asset Relief Program, the Treasury's bailout plan. Here's the problem: Grigg has no connection whatsoever with the SEC or any other regulatory body that could give the scheme even a smidgen of legitimacy. In a shining example of true vultureism, Grigg preyed upon those seeking a secure way to invest their money. And what could be more secure than the government?
At least 27 clients were told their investments were being placed in securities he described as "private placements," according to the Associated Press
, when the statements they received were actually fabricated. A hearing is set for Feb. 6.