CURRANíS SECURITIES DIVISION OBTAINS A TEMPORARY RESTRAINING ORDER, ASSET FREEZE AND RECEIVERSHIP
Baltimore - Attorney General J. Joseph Curran, Jr., announced today that his officeís Securities Division has obtained a temporary restraining order against a Prince Georgeís couple and their Bowie-based company, charging them with violating Marylandís securities laws by operating a fraudulent investment scheme involving in excess of $1 million.
According to the order, issued by Circuit Court Judge Dwight D. Jackson, all assets of Samuel W. Butler, Jr., and Nancy J. Ford-Butler (the "Butlers") and their company, S.W. Butler & Associates of 919 Cypress Point Circle, Bowie, MD and 8877 Spiral Cut, Columbia, MD, are temporarily frozen and a temporary receiver has been appointed to take control of the company and its assets.
Curranís Securities Division alleges that the Butlers violated Marylandís securities laws by offering and selling unregistered investments and acting as unregistered securities agents and investment advisers. The pleadings allege that more than 50 investors participated in the Butlersí and S.W. Butler & Associatesí investment program and that the Butlers offered unregistered securities for at least three years. The complaint also alleges that investors thought their monies were being pooled by S.W. Butler & Associates to invest in commercial notes issued by corporate entities, with the Butlers guaranteeing investors returns from as much as 10 percent within 90 days and rising up to 24 percent within 180 days. It appears that most of the money coming into the program was used to pay other investors who wanted to withdraw funds.
"We brought an injunctive action for an asset freeze and receivership in this case to protect investorsí monies and to stop the Butlersí solicitation of additional investors," said Attorney General Curran. "By placing the company and the Butlers into receivership, we can trace the funds in this scheme and preserve the remaining assets for investors."
Curran emphasized that the Securities Divisionís investigation of this matter is continuing and urges anyone who invested funds with S.W. Butler & Associates or Samuel and Nancy Butler, or who has information concerning that investment program, to call the Securities Division of his office at 410-576-7783.
Curran reminded investors to call the Securities Division at 410-576-6360 before they invest to find out whether their investment adviser, broker and securities are registered. Even when an investment program looks reasonable, and friends and family trust the promoter, itís better to take a few minutes to verify the status of the promoters.