main menu page title feature menus content footer
My Florida C F O

CFO's Initiatives

Stay Connected

Follow the
Department of
Financial Services

Sign up for the CFO's
weekly newsletter!

Press Release

News   RSS RSS   Press Office   Archive

Injunction Issued against Amerifirst Funding Inc., Capital 1st Advisors, L.L.C., and Others. Judge Also Appoints Receiver over Companies

7/6/2007

FOR IMMEDIATE RELEASE
July 6, 2007
CONTACT: Mark Mathosian - 850-410-9701
 
TALLAHASSEE – The Florida Office of Financial Regulation (OFR) filed a complaint in Circuit Court in Lee County, against Capital 1st Advisors, L.L.C. and others. The complaint alleged that the Florida based defendants were engaging in investment fraud.   After considering the verified complaint, The Honorable Lynn Gerald, Jr., Circuit Court Judge in and for Lee County, Florida, entered an Order enjoining the defendants from selling unregistered securities in Florida and appointing a receiver over the assets of Capital 1st Advisors, L.L.C., Capital 1st Financial, Capital First Trust, Inc. and other related entities and individuals including Eric G. Hall, Fred W. Howard, John P. Priest and Vince J. Bazemore.
 
The OFR alleged that the Florida based defendants advertised high rate FDIC insured CDs in the newspapers to attract investors, usually elderly investors looking for a safe investment.   But when the investors responded to these advertisements they were sold either bonded life viatical settlement investments, or collateral secured debt obligations from the Texas based AmeriFirst companies.   Investors were told that the secured debt obligations were insured and guaranteed by a commercial bank, when in fact they were not.
 
“Unsuspecting Florida seniors were lured in by compelling newspaper advertisements offering high paying FDIC insured CDs. Instead, they were sold high risk, unsecured debt obligations and other unregistered securities,” said Don Saxon, OFR Commissioner.  Saxon commends the Securities and Exchange Commission and the Texas Securities Regulators for their investigative and legal team work in this multi-state investigation. “Together we were able to stop this egregious investment scam,” said Saxon.
 
The Florida Office of Financial Regulation encourages investors to thoroughly investigate investment offerings and to call the offices of OFR to determine if the company, broker and investments are legitimately registered, and if they have a complaint history.
Investors seeking further information should contact the Receiver, Jerry McHale at (239) 337-0808.
 
###
 
Please visit our website at www.flofr.com or call us toll free within Florida at 800-848-3792 or directly at 850-410-9898.