Affinity fraud hit’s a new low. Jody Myung Dunn was accused by the Securities and Exchange Commission, or SEC, of selling $3.45 million in fraudulent investments in a phantom offshore company to the deaf community. Dunn is also deaf.
Dunn Solicited Deaf Investors
The deaf investors were allegedly solicited via the Internet to sink their money into Imperia Invest IBC so the company could purchase Traded Endowment Policies, or TEPs, the British term for viatical settlements. These involve the sale of an insurance policy by the policy owner before the policy matures for less than the face value, but for more than the cash-in value at the time.
Dunn is also alleged to have misappropriated a portion of these funds to pay his mortgage, car payments and other person expenses.
The investors sent money orders to Dunn that he cashed and deposited into accounts he set up under the company names Global Wealth Lifepath, a Nevada corporation, and Dunn World Investments, an offshore company created by Dunn. From these accounts, Dunn forwarded funds to Imperia accounts in Costa Rica, Panama and the British Virgin Islands. Later he wired money to bank accounts in Cyprus and New Zealand with no obvious link to Imperia.
Approximately 7,133 deaf investors sent money to Dunn, who represented that he would invest in Imperia on their behalf. Dunn did not disclose to investors that he would misappropriate a portion of their funds to pay his mortgage, make car payments, pay for car insurance and a variety of other personal expenses.
According to the SEC
“No money has been invested, no TEPs were purchased and no investor received any return.” Even after the [SEC] filed an action against Imperia, Dunn continued to reassure investors that Imperia was legitimate and they would be paid.
The SEC is seeking the remedies of civil money penalties pursuant to Section 20(d) of the Securities Act and 21(d)(3) of Exchange Act, as well as disgorgement of any ill-gotten gains. In addition, the SEC seeks to permanently enjoin Dunn from engaging in any type of investment business.
Besides counts for fraud and misrepresentation, the complaint against Dunn also alleged that he ignored the red flags crowding around Imperia and conducted no due diligence regarding the company.
Guiliano Law Group
If you have been the victim of securities fraud you should consult with an attorney. The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
