Did You Invest in Diversified Lending Group and/or Applied Equities?

Did your broker/financial advisor sell you an investment in Diversified Lending Group, Inc., and Applied Equities, Inc? The SEC alleges that DLG and AEI raised at least $216 million from hundreds of investors nationwide, many of whom are senior citizens, by promising guaranteed high returns through real estate-related investments. The complaint alleges that the directors diverted substantial investor money to ventures unrelated to real estate.

"Investors were lured into this alleged scheme based on misrepresentations about the true nature of the securities and the defendants' business," said Rosalind Tyson, Regional Director of the SEC's Los Angeles Regional Office. "Our emergency action today demonstrates that the SEC will act aggressively in fraud situations like this to preserve assets for investors."

The SEC's complaint charges these companies with selling securities in the form of one- or five-year "Secured Investment Notes," representing that DLG pools investor money and invests it 70 to 80 percent in real estate property and 20 to 30 percent in mortgage lending. The SEC alleges that once investors invested in the Notes, defendants continued to represent to them that their money was being used as represented, that DLG's investments were profitable, that their money was safe, and that returns of either 9 percent or 12 percent were guaranteed. These investments sold may have been in violation of State and Federal securities Laws.

However, the SEC's complaint alleges that these companies did not invest DLG investor proceeds as represented. Instead, they diverted a substantial amount of investor money to undisclosed business ventures unrelated to real property or mortgage lending.

Neither DLG nor AEI have ever registered with the SEC. The Commission's complaint alleges that DLG, and AEI violated the antifraud provisions of the federal securities laws, and in addition to the emergency and interim relief that has been obtained, the SEC seeks a final judgment permanently enjoining the defendants from violating the antifraud provisions and ordering them to pay disgorgement of ill-gotten gains and financial penalties.

If your broker or financial advisor sold you this investment contact Soreide Law Group today to learn more about your rights. If you were a victim of their fraudulent investments contact us today toll free at 888-760-6552. We represent investors nationwide.