Securities Arbitration Lawyers BlogSEC Halts Wellington, Florida Investment Scheme
On February 26, 2019, the SEC announced charges and an asset freeze against the people behind a South Florida investment scheme. One of the people behind the scheme has a felony conviction, was in prison for 20 years, and is now out on parole.
Castleberry Financial Services Group LLC, managed by T. Jonathon Turner and CEO Normal Strell, has allegedly taken approximately $3.6 million from investors over the past year. The SEC filed an emergency action against them in district court, stating that Castleberry lied to its investors, claiming that it had hundreds of millions of dollars of capital invested in various businesses. The company also claimed that it had ties with CNA Financial Corp. and Chubb Group. Castleberry claimed that any investments would be protected and insured by those companies, which the SEC alleges is untrue.
Turner and Strell used investor funds to pay personal expenses, and they even transferred funds to other accounts and to their family members. Castleberry also put false information up on its website, claiming that Turner had significant finance industry experience, along with a law degree and an MBA, which is untrue. The website failed to mention Turner’s felony charge and his time in prison.
After the SEC made its statement, Judge Robin L. Rosenberg of the U.S. District Court for the Southern District of Florida granted the request for an asset freeze against Turner and Strell. The request for a temporary restraining order was also granted.
This case is still under investigation. However, many investors have now come forward alleging they are victims of another South Florida investment scheme defrauding the South Florida retirement community.
Silver Law Group is a nationally-recognized securities law firm headquartered in South Florida representing investors worldwide with their claims for losses due to securities and investment fraud. The firm has successfully recovered multi-million dollar awards for its clients through securities arbitration and the courts. To contact Scott L. Silver to discuss your legal matter, call toll-free (800) 975-4345 or e-mail him at SSilver@silverlaw.com.