Former Golden Valley Investment Advisor Barred From Securities Industry

The Securities and Exchange Commission has barred a Golden Valley investment adviser from participating in the securities industry.

cannot associate "with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization," according to an SEC  order (see PDF) on Aug. 17.

In May, a U.S. Attorney's Office indictment stated Brown created Investors Income Fund X, LLC, a limited liability company, two years ago and had people invest in Fund X.

The indictment states that Brown told investors that Fund X was a “bond fund” with an eight or nine-percent rate of return, and that she had invested $200,000 of her own money in the fund. According to the indictment, Fund X never was a bond fund, and Brown never invested any of her own money in Fund X.

The indictment goes on to state that Brown allegedly used more than $500,000 of the investors’ funds for her personal use, including buying a condominium and paying credit card bills.

Brown did not admit to the allegations or deny them; she only agreed to allow the order to be issued, according to the U.S. Attorney's Office.
As part of the order, she also is barred "from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock."