On November 10, 2015 the Securities and Exchange announced that it charged Texas-based insurance agent Bobby M. Collins with operating a fraud out of his insurance and retirement planning business, Collins Insurance Companies a/k/a BMC Retirement Planning
According to the SEC’s complaint, filed in the Northern District of Texas, Collins targeted elderly investors through BMC Retirement Planning dating back to at least 2010. Collins lured many elderly investors to invest more than $4.6 million in high-yield, unsecured notes. Collins told the investors that he would use their funds to grow his business, and pay significant returns from new business generation and revenue growth.
The SEC’s complaint alleges that Collins made false promises to his investors, and instead of using investor funds to expand BMC Retirement Planning, he spent the funds on mortgages and luxury car payments, and to pay distributions to earlier investors. Collins kept the ponzi scheme going by relying on a stream of new and repeat investors.
The SEC also announced that Collins agreed to settle the SEC’s action against him by consenting to an injunction against violations of Sections 5(a), 5(c), and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5, and by agreeing pay disgorgement and prejudgment interest of $573,234.16, and a $160,000 civil penalty.
The SEC’s litigation release against Collins and BMC Retirement Planning can be found here
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery and our securities attorneys have successfully resolved over 1000 investment loss cases over the past 20 years. Recoveries for clients top $40 million. The types of claims we have successfully handled include those involving unsuitable investments (suitability claims), excessive trading or “churning”, misrepresentations and omissions, unauthorized trading, over-concentration of illiquid or overly risky investments, pump and dump scams involving “penny stocks”, direct participation programs (private placements) involving real estate investment trusts (REITS), oil and gas exploration programs, leasing equipment deals and receivable financing, promissory notes whether sold through a broker dealer or as part of the outside business activities of a registered representative, ponzi scheme losses, failure on the part of the broker dealer to perform due diligence, state securities law (blue sky) violations and failure to supervise.
If you have suffered investment losses please call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation