Paying Off Gambling Debts
Borrowing Investor’s Money to Pay off Gambling Debts is a Crime
Investors usually invest with an expectation to receive a good financial return in the future. People look for the support of the investors to establish their business. However, have you ever seen anyone who has borrowed investor’s money to pay off the debts? If not, then read this piece of news. According to the news, an unregistered broker from California recently borrowed a huge sum of money from the investors. The man borrowed the money in order to pay off his gambling debts of around $1.9 million. The Securities and Exchange Commission revealed the entire news to the media.
About the California Broker
Gregory Ruehle, the broker who borrowed the money has been charged on the criminal basis by the US Attorney’s office for the Southern California District and civilly by the SEC. In addition to this, it is a fact that the Gregory was caught selling purported stock in a medical device company fraudulently. His crime was to pocket the borrowed money of the investors deceitfully.
Not just 1 or 2 but he borrowed the money to pay off the debts from 100 investors. It is surely a bog number of investors to whom he cheated. Had he borrowed the money for good reasons, he would have not been charged with any offences. However, he used the money for his personal expenses, which majorly included clearing the gambling debts, according to the reports of SEC.
The Complaint of SEC
Gregory started with his entire story or scheme in the year 2012. At this time, he started misrepresenting to the popular investors of Minnesota and California. He made the story that he is going to sell off his La Jolla California based medical device company. He even proved that it was his personally owned security that was run under the name, ICB International Inc. The entire state-of-affairs has been clearly mentioned in the complaint of SEC. In fact, Gregory was only the formal consultant of the company.
The reports and the facts have made it all clear that Gregory sold more than he even owned. Yes, he sold even the securities that did not own to the investors. These securities were far more than what he actually owned. In addition to this, the securities that Gregory did not own were not transferable, according to what SEC points out. Gregory, who just kept on making schemes of frauds, never revealed all these figures.
The Bottom Line
After committing such a crime in all his senses, Gregory is sure to suffer a lot legally. The alleged broker should have at least revealed the facts to the investors. In fact, he should have not gambled beyond his pocket. In order to teach other people that enter into same kinds of frauds a lesson, it is important that a strict case must be filed a severe action to be taken against Gregory. The investors who lend the money are looking for justice and are hoping to receive their money back somehow.