Fort Worth Man Settles Fraud Charges
WASHINGTON (AP) _ A Texas man has settled with federal regulators over an alleged securities fraud scheme that cost 1,300 investors more than $12 million.
The Securities and Exchange Commission said George Charles Schneider of Fort Worth agreed to a permanent injunction that orders him not to violate anti-fraud and registration rules in federal securities laws.
The civil order by U.S. District Judge John McBride in Fort Worth also ordered Schneider to pay about $436,000, representing improper profits and interest, said SEC trial counsel Stephen Webster in Fort Worth.
The payment was waived because Schneider demonstrated he was unable to pay and had filed for Chapter 7 bankruptcy protection.
The case involves Campbell and Associates, with operations in Fort Worth and Atlanta, which sold investment contracts that were supposed to be used to finance short-term loans for government construction contractors. About $27 million was raised, the SEC said.
The SEC said Campbell and Associates actually was running a ``Ponzi scheme,″ a type of fraud in which the initial investors are paid off by new investors they recruit.
Schneider agreed to the injunction without admitting or denying the SEC’s allegations. Webster said Schneider was one of the salesmen involved in the scheme but the SEC didn’t specify how much the defendant’s conduct contributed to the $12 million loss.
A call placed to Schneider’s attorney in Fort Worth wasn’t immediately returned.