WASHINGTON -- The Securities and Exchange Commission yesterday announced that it filed fraud charges this month against a mid-western broker for allegedly making a half million dollars in bogus bond sales, including state of Illinois general obligation bonds.
The SEC said that from May 1991 through November 1991, James Gordon Rogers obtained at least $553,000 from at least 11 investors to buy bonds. Instead of investing in bonds, Mr. Rogers invested the funds in "an extremely risky real estate development project," according to a complaint issued by the commission.
Among the investments Mr. Rogers alleged by pledged to make were Norfolk and Southern Railroad bonds. Norfolk and Western Railroad bonds, General Electric bonds and state of Illinois GOs with maturities of Nov. 1, 1991, Dec. 1, 1991, and April 1, 1992.
The complaint says Mr. Rogers told investors that the bonds were triple-A rated and that he gave investors confirmations on broker-dealer stationary outlining the terms of the bonds.