Renee Marie Brown, former president of the Real Estate Investment Securities Association (“REISA”), pleaded guilty to defrauding investors out of $1.1 million. Ms. Brown, a former investment adviser, was also a founder of FactRight, LLC, a consulting firm that conducts due diligence on private placements and real estate deals.
In April 2010, the Securities and Exchange Commission (“SEC”) charged Ms. Brown with fraud in connection with a bogus bond fund, Investors Income Fund X, which she created and pitched to investors by telephone, e-mail and in person. Upon being charged by the SEC, Ms. Brown’s relationship with FactRight was terminated and she resigned from REISA. Both FactRight and REISA issued statements that Ms. Brown’s wrongdoing was not connected with either of the organizations.
Ms. Brown admitted that, beginning in June 2009, she falsely told potential investors that the Investors Income Fund X was a bond fund paying 8-9% and that she had invested $200,000 of her personal funds in it. In reality, it was not a bond fund and she had not invested any money in it. Ms. Brown faces a maximum sentence of 20 years in prison.
Investors nationwide who have been the victim of financial fraud, may contact the Florida securities arbitration attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to email@example.com.