Corporate & Securities Law

The Securities and Exchange Commission has convinced a District Court for the Northern District of Illinois to enter an order permanently enjoining John Tencza, of Meridian, Idaho and formerly of Scottsdale, Arizona, as well as American Elder Group, L.L.C., Tencza's business, from violating certain of the antifraud and registration provisions of the federal securities laws. 

The SEC's complaint in this matter charges that Michael Kelly and 25 other defendants, including Tencza and American Elder Group, participated in a massive fraud on U.S. investors that involved the offer and sale of securities in the form of Universal Leases.  Universal Lease investments were structured as timeshares in several hotels in Cancun, Mexico, coupled with a pre-arranged rental agreement that promised investors a high, fixed rate of return. 

The SEC's complaint alleges that from 1999 until 2005, Kelly and others, including Tencza and American Elder Group, raised at least $428 million through the Universal Lease scheme from investors throughout the United States, with more than $136 million of the funds invested coming from IRA accounts.

The SEC further alleges that a nationwide network of unregistered salespeople who sold the Universal Leases, including Tencza and American Elder Group, collected undisclosed commissions totaling more than $72 million.  These commissions sometimes amounted to as much as 27%.

SNSFE is investigating this massive fraud and welcomes information and comments from investors.

Source:  SEC Digest