NASHVILLE (CN) - JC Reed & Co. and its directors suckered investors for $11 million in unregistered stock and spent the money, driving JC Parent and JC Advisory Group into bankruptcy, the SEC claims in Federal Court. The SEC also sued JC Reed's widow, Lana Reed, and Barron Mathis, president of JC Advisory.
JC Advisory was an investment company and sold its stock to more than 100 people, some of them its own clients, the SEC says.
"JC Parent has raised and spent more than $11 million in investor funds, but has generated only about $386,000 in gross revenues. The company's steady losses have led to recent bankruptcy filings by JC Parent and JC Advisory," the complaint states.
John C. Reed died in June. He founded the company in Franklin, Tenn., 2005.