January 8, 2010 – The SEC alleges Richard Elkinson operated an investment scam that bilked 130 investors out of at least $28 million dollars, based on a civil complaint filed yesterday. According to the complaint, which was filed in a federal court in Massachusetts, Elkinson ran the scam out of his Framingham, Massachusetts home. Elkinson was arrested earlier this week in Mississippi and a criminal complaint was filed by the U.S. Attorney’s Office for the District of Massachusetts.
Elkinson told investors that his business, Northeast Sales, facilitated deals between the Japanese uniform manufacturer and large purchasers including state and local governments and even the U.S. Olympic Committee. Elkinson sought investors to help finance the 50% down payments required for these supposed contracts. To raise these funds, Northeast Sales issued promissory notes with annual interest rates ranging from 9-13%. The SEC alleges that in reality Northeast Sales did not have a relationship with a Japanese uniform manufacturer and no supply contracts actually existed.
According to the complaint, the interest and principle payments that Elkinson made to investors were from prior investors’ contributions. The SEC alleged that Elkinson used a majority of the money for personal use including supporting his gambling habit.
The U.S. District Court for the District of Massachusetts has entered a temporary restraining order prohibiting Elkinson from further securities violations and has frozen his assets. Further proceedings are anticipated.
If you are a Northeast Sales Investor/Victim or 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.