The Securities and Exchange Commission said Tuesday that it had filed fraud charges against an Army veteran in Texas, alleging he lied about his financial experience to lure current and former U.S. military personnel into investing with him.
The SEC alleges that Leroy Brown Jr. promoted himself as an Army veteran to attract members of the military and other investors to his firm LB Stocks and Trades Advice LLC.
The regulators are seeking “financial penalties and disgorgement of ill-gotten gains as well as permanent injunctive relief,” and the court has issued an order temporarily freezing assets of Brown and his firm.
“Brown falsely assured investors, including some stationed at nearby Fort Hood, that he had many years of experience in the securities markets,” the regulator said in a press release. “He specifically claimed to have all the necessary licenses and registrations to conduct securities business.
“In reality,” the SEC continued, “Brown is not a licensed securities professional, and his firm is not registered with the SEC, Financial Industry Regulatory Authority or any state regulator. Brown and his firm have no evident experience with investments.”
In addition, the SEC says Brown falsely guaranteed investors that he would “double or triple their money within 120 days.”