2011-10-11 sec-litreleases litigation_release 66 KB 2,808 chars

SEC v. Jerry L. Aubrey; Timothy J. Aubrey; Brian S. Cherry; and Aaron M. Glasser, No. LR-22124, Central District of California (Oct. 11, 2011) — Press Release

raw: Jerry L. Aubrey, Timothy J. Aubrey, Brian S. Cherry, and Aaron M. Glasser

Jerry L. Aubrey, Timothy J. Aubrey, Brian S. Cherry, and Aaron M. Glasser, No. LR-22124 (Oct. 11, 2011)

Caption
SEC v. Jerry L. Aubrey, et al.
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summary

Jerry L. Aubrey, his brother Timothy J. Aubrey, and two salesmen, Brian S. Cherry and Aaron M. Glasser, were charged with running an $11 million Ponzi scheme through Progressive Energy Partners, LLC, promising investors annual returns of over 50% for oil and gas well investments.

paragraph

The SEC charged the defendants with operating a Ponzi scheme that diverted $3.2 million for personal use and paid $2.2 million in commissions to salespeople. The scheme allegedly promised investors annual returns of over 50% for oil and gas well investments in West Virginia, but in reality, Progressive Energy Partners, LLC had no legitimate operations. The defendants concealed that up to 35% of investor funds went to sales commissions, with Cherry and Glasser receiving over $300,000 and $750,000 respectively.

narrative

The SEC charged Jerry L. Aubrey, his brother Timothy J. Aubrey, and two salesmen, Brian S. Cherry and Aaron M. Glasser, with running an $11 million Ponzi scheme through Progressive Energy Partners, LLC. The scheme allegedly promised investors annual returns of over 50% for oil and gas well investments in West Virginia, but in reality, the company had no legitimate operations. Instead, Jerry Aubrey used new investor money to pay earlier investors and diverted over $3.2 million for personal luxuries, including a lavish home, Lakers tickets, and vacations. The defendants also concealed that up to 35% of investor funds went to sales commissions, with Cherry and Glasser receiving over $300,000 and $750,000 respectively, while Jerry paid more than $2.2 million in total commissions. The SEC alleged violations of Sections 5(a), 5(c), 17(a) of the Securities Act and Sections 10(b), 15(a) and Rule 10b-5 of the Exchange Act, seeking injunctions, disgorgement, interest, and civil penalties. Jerry Aubrey is currently serving a five-year sentence in Florida state prison for a prior securities fraud.

Enriched metadata

Scheme
ponzi (100%)
Court
Central District of California
Victim loss
$3,200,000
Entity
Jerry L. Aubrey
Classified ponzi(confidence 100%). EDGAR detection: forms Form D· recall 35% / precision 15%. detection rule →
Statutes
Sections 5(a), 5(c), and 17(a) of the Securities ActSections 5(a), 5(c), and 17(a) of the Securities ActSections 5(a), 5(c), and 17(a) of the Securities ActSections 10(b) and 15(a) of the Securities Exchange ActSections 10(b) and 15(a) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionJerry L. AubreyTimothy J. AubreyBrian S. CherryAaron M. Glasser
Keywords
jerry aubreyaubreyjerrytimothy aubreybrian cherrycherry aaronaaron glassertimothycherryglassersecuritiescommissionpepaubrey timothyaubrey brian

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 5
  • $11.00M $11 MILLION $10M–$100M
  • $3.20M $3.2 million $1M–$10M
  • $2.20M $2.2 million $1M–$10M
  • $750K $750,000 $100K–$1M
  • $300K $300,000 $100K–$1M
Entities 8
  • person Jerry L. Aubrey ×2
  • person Aaron M. Glasser
  • person Brian S. Cherry
  • organization Florida State Prison
  • organization Progressive Energy Partners, LLC
  • agency Securities and Exchange Commission
  • person Timothy J. Aubrey
  • organization U.S. District Court In Orange County, California
Triples 3
  • Jerry L. Aubrey used his now-defunct company Progressive Energy Partners, LLC to contact investors through cold
  • SEC charged Jerry L. Aubrey, Timothy J. Aubrey, Brian S. Cherry, and Aaron M. Glasser with masterminding a $11 million Ponzi scheme
  • SEC filed a complaint against Jerry L. Aubrey, Timothy J. Aubrey, Brian S. Cherry, and Aaron M. Glasser
PDF (from attached: complaint)
Progressive Energy Partners, LLC ("PEP"), Jerry L. Aubrey, · Source
Text layers
Extracted body text (2,808c) 
SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 22124 / OCTOBER 12, 2011 SEC v. Jerry L. Aubrey, Timothy J. Aubrey, Brian S. Cherry, and Aaron M. Glasser, Civil Action No. SACV 11-1564 JVS (RNBx) (C.D. Cal.) SEC CHARGES MASTERMIND OF $11 MILLION PONZI SCHEME On October 11, 2011, the Securities and Exchange Commission ("Commission") filed a complaint alleging that Jerry L. Aubrey used his now-defunct company Progressive Energy Partners, LLC ("PEP") to contact investors through cold calls and high-pressure sales tactics. PEP salespeople falsely claimed that investors' money would be used to develop and support oil and gas wells in West Virginia. Investors were misled to believe they could expect annual returns of greater than 50 percent. The Commission also charged Jerry Aubrey's brother and two PEP salesmen in its complaint filed in U.S. District Court in Orange County, California. The Commission's complaint alleges that PEP never engaged in any profitable business operations. Instead, from approximately 2005 to April 2010, Jerry Aubrey paid existing investors with money raised from new investors. The Commission's complaint also alleges that Jerry Aubrey and his brother Timothy J. Aubrey diverted more than $3.2 million of investor funds for their personal use, including: Rent for the Aubrey family's lavish house equipped with giant fish aquariums with miniature sharks, a hot tub, pool, and tennis court. Box seats at Los Angeles Lakers basketball games and limousine rides to and from the games. Vacations to Hawaii, Las Vegas, and Palm Springs. According to the Commission's complaint, Jerry and Timothy Aubrey and PEP salesmen Brian S. Cherry and Aaron M. Glasser failed to inform investors that up to 35 percent of their money would be used to pay sales commissions. Jerry Aubrey paid more than $2.2 million in commissions to PEP salespeople. Glasser received nearly $750,000 and Cherry received more than $300,000. Jerry Aubrey is currently serving a five-year sentence in Florida state prison for a securities fraud he perpetrated in Florida. The Commission's complaint charges all defendants with violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and also charges Jerry Aubrey with aiding and abetting his company's Section 10(b) and Rule 10b-5 violations. The Commission also seeks permanent injunctions against all defendants and a conduct based injunction against Jerry Aubrey prohibiting him or any entity he owns or controls from offering unregistered securities in the future. In addition, the Commission seeks disgorgement plus prejudgment interest and civil penalties against Timothy Aubrey, Cherry, and Glasser. SEC Complaint in this matter
OCR text (2,808c · html-text · 99% conf) 
SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 22124 / OCTOBER 12, 2011 SEC v. Jerry L. Aubrey, Timothy J. Aubrey, Brian S. Cherry, and Aaron M. Glasser, Civil Action No. SACV 11-1564 JVS (RNBx) (C.D. Cal.) SEC CHARGES MASTERMIND OF $11 MILLION PONZI SCHEME On October 11, 2011, the Securities and Exchange Commission ("Commission") filed a complaint alleging that Jerry L. Aubrey used his now-defunct company Progressive Energy Partners, LLC ("PEP") to contact investors through cold calls and high-pressure sales tactics. PEP salespeople falsely claimed that investors' money would be used to develop and support oil and gas wells in West Virginia. Investors were misled to believe they could expect annual returns of greater than 50 percent. The Commission also charged Jerry Aubrey's brother and two PEP salesmen in its complaint filed in U.S. District Court in Orange County, California. The Commission's complaint alleges that PEP never engaged in any profitable business operations. Instead, from approximately 2005 to April 2010, Jerry Aubrey paid existing investors with money raised from new investors. The Commission's complaint also alleges that Jerry Aubrey and his brother Timothy J. Aubrey diverted more than $3.2 million of investor funds for their personal use, including: Rent for the Aubrey family's lavish house equipped with giant fish aquariums with miniature sharks, a hot tub, pool, and tennis court. Box seats at Los Angeles Lakers basketball games and limousine rides to and from the games. Vacations to Hawaii, Las Vegas, and Palm Springs. According to the Commission's complaint, Jerry and Timothy Aubrey and PEP salesmen Brian S. Cherry and Aaron M. Glasser failed to inform investors that up to 35 percent of their money would be used to pay sales commissions. Jerry Aubrey paid more than $2.2 million in commissions to PEP salespeople. Glasser received nearly $750,000 and Cherry received more than $300,000. Jerry Aubrey is currently serving a five-year sentence in Florida state prison for a securities fraud he perpetrated in Florida. The Commission's complaint charges all defendants with violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and also charges Jerry Aubrey with aiding and abetting his company's Section 10(b) and Rule 10b-5 violations. The Commission also seeks permanent injunctions against all defendants and a conduct based injunction against Jerry Aubrey prohibiting him or any entity he owns or controls from offering unregistered securities in the future. In addition, the Commission seeks disgorgement plus prejudgment interest and civil penalties against Timothy Aubrey, Cherry, and Glasser. SEC Complaint in this matter

Related documents (1)