The announcement was made by the Securities and ExchangeCommission. The settlement stems from fraud charges the SEC filedlast October against Ernest Cossey and Gary Williams, both ofDiamond Bar.
The SEC's suit claimed that the pair set up severalentities—among them TLC Investments & Trade Co. and TLC AmericaInc.—to collect millions of dollars from about 1,800 investors,many of them senior citizens. The investments promoted by the twomen promised safety and liquidity with a guaranteed return of 8% to15%, the SEC said.
Instead, the SEC says, Cossey and Williams essentially usedmoney from new investors to pay off previous investors. Some of thecash the pair collected was moved offshore, used to buy racehorsesand make charitable contributions, the lawsuit says.
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