The Florida Office of Financial Regulation is investigating allegations that several companies and individuals sold CDs to investors, primarily elderly, by falsely claiming the CDs were insured by the Federal Deposit Insurance Corp.(FDIC).
A Brevard County Circuit Court issued an injunction on Nov. 27th. against First Merchant Capital LLC, Capstar Industries LLC, Southeast Mutual Insurance and Investment Inc., Donald Ray Babb, Ralph V. Ruth and Catherine Ruth.
Accused of luring at least 30 customers to invest nearly $3 million in the CD program since August 2011, the defendants allegedly sold the CDs to customers searching for ultra-conservative investments with FDIC-insurance backing.
Their sales pitch, which also included ads in the Tampa Bay Times and Jacksonville's Florida Times-Union, promised the CDs were paying the "highest rates in the nation," regulators said. They are also investigating whether the investors' proceeds have been misused.
These companies are now under receivership as the inquiry continues.
If you or an elderly family member have experienced losses through your broker/financial advisor, call a Securities Arbitration Lawyer at the Florida-based Soreide Law Group for a free consultation on how to potentially recover your losses: 888-760-6552.
Steven Graham (CRD 1977736) denies the allegations in a pending customer claim filed on August 11, 2026. The disclosure names Western International Securities as the firm, and the claim involves corporate bonds. No arbitrator has ruled on it. His BrokerCheck report also lists a settled bond dispute and a federal court matter from earlier years.
A claim filed on September 11, 2024 names Thomas Hamlin (CRD 2208505) over a 10% Senior Unsecured Note in iCap Fund III. Every disclosure on his BrokerCheck report involves an iCap private placement and names Somerset Securities as the firm. Each one settled, and a settlement is not an admission of wrongdoing.
Peter Po's most recent settlement came on June 28, 2026, when a corporate bond claim settled for $40,000. Po (CRD 3106974) appears in several settled customer disputes over corporate and high-yield bonds. The disclosures name NI Advisors or California Securities as the firm, and each matter ended in a settlement, not a finding.
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