SEC sues for fraud

The feds are accusing Bruce Friedman of operating an "ongoing fraudulent investment scheme" involving at least $17 million that was misappropriated for his personal use. That included an expensive home, cars, vacations, jewelry and designer clothing. At least $275,000 was given to his girlfriend, Tina Placourakis. A federal judge today froze the assets of Friedman's Sherman Oaks investment company. From the LAT:

Friedman told investors that he would place their money in real estate and mortgage lending, but instead diverted much of it to his charitable foundation, his personal stock portfolio, friend's business ventures and the production of a rock documentary. According to Internet Movie Database, Friedman is an executive producer of "Rock Prophecies," a documentary featuring Carlos Santana and ZZ Top scheduled for direct release on DVD in October. The SEC action comes 28 years after Friedman was convicted and sentenced to prison for stealing $300,000 from his employer, according to Los Angeles County Superior Court records.

Many of the investors were older people who had been promised guaranteed high returns through real estate investments. Instead, the money was diverted to Friedman’s personal interests, including the production of a rock documentary. The Jewish Journal also has the story.