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New Day, My Foot, SEC Tells Bosses

ATLANTA (CN) - New Day Atlanta dba NCA Financial and the two men who ran it bilked investors for more than $3.2 million, the SEC says. It sued Andrew L. Avery, Lee E. Marks and their company in Federal Court.

The SEC claims the defendants sold purported high-yield, fixed Real Estate Investment Notes (REINs) to more than 70 investors since 2007.

Through the NDA Web site, a written prospectus and personal communications, Avery and Marks "made material misrepresentations, misleading statements and omissions of fact regarding, among other things, the safety of investor proceeds, the gross value of NDA's assets, and the amounts of NDA's gross revenues," according to the complaint.

The SEC says the men posted on Web site that that REINs "could vary in term from one to five years and annual percentage yields would vary from 5.8 to 10.5 percent depending on the term and face purchase amount of the REIN. ...

"Defendants Avery, Marks and NDA marketed the REINs on the Web site and in Prospectus as 'no load, no fee' instruments by which individuals could invest in the so-called Magnolia Real Estate Fund," the SEC says.

However, it added, "The Magnolia Fund is a fictitious name devised by Avery and Marks to describe NDA's assets and holdings in a collective sense and is not registered with any state or federal agency in any manner."

From at least September 2007 to at least February, the defendants knew that NDA was "not generating income sufficient to provide effective annual returns from between 5.8 and 10.5 percent and that such statements were false," according to the complaint.

The SEC seeks freezing of assets, penalties, accounting and an injunction.

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