DALLAS (CN) - Diversified Lending Group CEO Bruce Friedman diverted millions of dollars of investors' money to his lavish lifestyle and pet projects, including a feature film listing him as executive producer, the Securities and Exchange Commission claims in Federal Court.
Friedman raised more than $216 million by selling five-year notes to hundreds of investors, mainly elderly clients, the SEC claims. The Sherman Oaks-based lending group and its subsidiary, Applied Equities, claimed to make money by buying and flipping real estate, but the SEC claims Friedman misappropriated a large chunk of the money to finance personal business ventures and support a life of luxury. He purportedly spent more than $17 million on homes, cars, vacations, jewelry, and designer clothing and accessories. He also gave more than $250,000 to his girlfriend, Tina Placourakis, according to the lawsuit.
The SEC demands an injunction and disgorgement.
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.
Additional Reads
-
EU gains trillions in revenue — and debt April 22, 2024 -
Alaska, Hawaiian Airlines April 17, 2024
-
-
Contributor-Test-Post-2024-04-12 April 12, 2024