NEWARK (CN) – The SEC charged two New Jersey men with selling fraudulent, unregistered securities through Craigslist. It claims Paul G. Bultmeyer and Arthur J. Piacentini raised more than $1 million through their firms Sherbourne Capital Management and Sherbourne Financial.
In its federal complaint, the SEC claims the men sold so-called “Prime Certificates of Participation” they advertised in print and on Craigslist and other Internet sites. The agency said in a statement that the men did not invest the money as they promised, but “funneled the investor proceeds to themselves as well as a charter aviation company and a payroll services company that they operate with many New Jersey municipalities and small businesses as clients.”
The SEC named Ameripay, the payroll services company, and Equitaire, the charter aviation company, as relief defendants, to recover assets in their possession.
The SEC says Sherbourne Financial advertised itself on the Web as “Your Retirement Income Specialist.”