Securities & Exchange Commission v. TLC Investments & Trade Co.

ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT

Before the Court is Plaintiff Security and Exchange Commission’s (SEC) motion for summary judgment against Defendants Cloud & Associates (C & A) and Thomas C. Cloud (collectively Cloud). After reviewing the moving, opposing, replying papers, and after oral argument on October 15, 2001, and for the reasons set forth below, the Court GRANTS Plaintiffs motion for summary judgment.

I.

BACKGROUND

This is a securities fraud case. From August 1998 through October 2000, Defendants TLC Investments & Trade Co., TLC America, Inc., TLC Brokerage, Inc., TLC Development, Inc., and TLC Real Properties RLLP-1 (collectively TLC) engaged in a nationwide real estate Ponzi scheme, raising over $150 million from nearly 2000 investors nationwide. TLC investors were typically senior citizens, many of whom invested their retirement or savings accounts into TLC’s fraudulent schemes.

TLC’s scheme was to represent to investors that it would use their money to refurbish and resell distressed real estate, which TLC guaranteed would create a rate of return between 8% and 15%. TLC represented that the investment would be secured by an interest in real…