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.
Apparently, Loomis used hundreds of thousands of dollars of investor money to support his other failing businesses and to perpetrate a similar real estate scam. The SEC further alleges that Hagener was compensated over $190,000 for managing the funds even though he knowingly transferred capital to other businesses’ bank accounts and sent out false account statements to investors.
The SEC is seeking injunctive relief, disgorgement of ill-gotten gains, and monetary penalties. Further proceedings are anticipated in the Federal District Court for the Eastern District of California.
If you invested with Loomis Wealth Solutions, LLC, Lismas Financial Services, LLC, Lawrence “Lee” Loomis and/or John Hagener, or are the victim of some other type of investment fraud, the Law Offices of Keith L. Miller, and its affiliates, is prepared to review your situation and potential claim(s) without charge, and will consider representing you on a contingent fee basis, which means that you will not have to pay out of pocket for your legal representation. The firm will take a fee only if we are successful in recovering your assets.
If you would like a free confidential initial consultation, please contact this office by calling (617) 523-5803, or click here to send a confidential email.