John Morgan, the Texas securities commissioner, is ordering SoBell Corp. and its owner Andrew Gamber to stop selling its Pension Income Stream Program in the state of Texas. SoBell, which is based in Mississippi, executes agreements with pension benefits recipients to sell their income stream to investors for $35K to over $1K, while offering 7-8% in yearly returns.
Morgan says that the company and Gamber committed fraud by selling unregistered securities and making statements to investors that were “misleading and deceiving.” SoBell also is accused of executing agreements with pension benefit recipients that gave the company authority to sell pension-sourced income to investors.
As for Gamber, he allegedly did not disclose that he had been subject to sanctions in Pennsylvania, Arkansas, New Mexico, and California. The four states had issued cease and desist orders against Voyager Financial Group, LLC, Gamber, and people who sold the unregistered securities. They also are accused of misleading investors about the risks involved in certain investment products, including default rates involving pension income stream sales made by companies that Gamber controlled, and they purportedly did not disclose that making pension payment assignments is against federal law.
Disabled persons, veterans, military members, and federal government employees are among those that typically get involved in pension-sourced income. The Texas Securities Board says that often these investors are solicited while they are under “financial distress.”
The state board names stream-of-income investments as one of the leading threats to investors. They typically involve a company serving as a middleman for sellers and buyers. A company will connect investors to persons seeking to sell pension or government disability-based payments.
Our Texas securities fraud law firm represents investors seeking to recover their investment losses. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.
Firm Ordered to Stop Sale of Pension-Linked Investments, Texas State Securities Board, February 1, 2016