Lawrence "Lee" Loomis Ponzi Scheme Halted by SEC
February 23, 2010 - Lawrence "Lee" Loomis and his father-in-law John Hagener were allegedly running an investment scam through their entities Loomis Wealth Solutions, LLC and Lismar Financial Services, LLC. According to a complaint filed by the Securities and Exchange Commission ("SEC") today in a California federal court, the two men raised approximately $10 million from over 100 investors since 2007.
Loomis and Hagener attracted investors by promising 12 percent annual returns on alleged real estate investments. Apparently, Loomis told prospective clients that their money would be invested in two funds called the "Naras Secured Funds," which would loan money to homebuyers and the loans would be secured by real estate deeds of trust. In reality, the SEC claims that no such trusts existed the victims' money was used to pay other investors, to pay the operating expenses of other Loomis entities, and for Loomis' and Hagener's personal use.
The complaint further states that Loomis held investment seminars in Sacramento, California in 2007 and 2008, where he encouraged people to invest in Loomis Wealth Solutions. Loomis apparently attracted investors to these seminars with newspaper ads and direct mailings.
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