Nov 5 The Financial Industry Regulatory
Authority (FINRA) has filed a temporary cease-and-desist order
against WR Rice Financial Services and its owner Joel Wilson to
halt alleged fraudulent sales of limited partnership interests
FINRA, Wall Street's industry-funded regulator, said the
Michigan-based brokerage fraudulently sold more than $4.5
million in limited partnership interests to about 100 investors
mainly from low-to-moderate-income households.
The regulator also issued a complaint saying the sale was in
entities affiliated with Diversified Group and American Realty
Funds Corp, companies controlled by Wilson.
FINRA alleges that the company promised investors that the
proceeds would be invested in land contracts in Michigan and
would pay an interest of 9.9 percent.
However, the funds were used to make unsecured loans to the
companies, FINRA said.
Wilson has also been charged with providing fabricated
documents related to the limited partnership offerings and with
failing to provide full testimony during FINRA's investigation.