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Monday, April 22, 2024 | Back issues
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Leroy Brown Really|Is Bad, SEC Says

WACO, Texas (CN) - He's Leroy Brown and he's bad, the SEC says in a lawsuit accusing a Texan of defrauding military personnel through his so-called "Stocks and Trades Advice" company.

Leroy Brown Jr., 32, of Killeen, served in the Army for 12 years, the SEC says in its federal lawsuit. After he mustered out in July 2013, he targeted his former comrades in arms with a string of "highly dubious" and phony claims for his company, LB Stocks and Trades Advice LLC, according to the April 13 complaint.

Brown promised that for a $1,000 "membership certificate," his victims were guaranteed to double or triple their money "in less than 120 days," the SEC says.

Among his misrepresentations, the SEC says, are that:

he and his companies are registered with the SEC and FINRA;

that he has experience as a broker in the financial services industry;

that he trains stock brokers and LB employs them;

that his "affiliates, corporate investors, and corporate partners" include Walmart, Apple, Sony, Microsoft, Best Buy, HP, USA Today, and McAfee;

and that he has offices in New York City's financial district and in San Francisco.

He claims to make these wonderful returns by "investments in undeveloped real estate," the SEC says.

It seeks an injunction, disgorgement and penalties.

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