Judgement Entered Against Edwards
On June 9, 2017, the Honorable Esther Salas of the U.S. District Court for the District of New Jersey entered judgments against Dwayne Edwards, several entities Edwards used to orchestrate his alleged fraud, and relief defendant Sharon Nunamaker.
The judgment against Edwards and the entity defendants and relief defendants imposes permanent injunctions against future violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and aiding and abetting violations of 17(a), 10(b), and Rule 10b-5, a permanent injunction from future participation in municipal securities offerings by Edwards, and orders payment of disgorgement, prejudgment interest thereon, and civil money penalties in amounts to be determined at a later date. The entity defendants are Senior Solutions of Social Circle, LLC, Oxton Place of Douglas, LLC, d/b/a Oxton Real Estate of Douglas, LLC, Rome ALF, LLC, Savannah ALF, LLC, Gainesville ALF, LLC, Waterford Place ALF, LLC, Montgomery ALF, LLC, Columbus ALF, LLC, and Opelika ALF, LLC, and the relief defendants are Oxton Senior Living, LLC, and Manor House Senior Living, LLC. The final judgment against Nunamaker orders her to pay disgorgement and prejudgment interest thereon of $7,742.16. Edwards consented to the entry of the judgment, which continues the receivership over the facilities, on behalf of both himself and his entities. Nunamaker also consented to the entry of the final judgment.The SEC’s complaint alleged that Edwards improperly commingled money from several different municipal bond offerings and the revenues of the facilities underlying the offerings. The offerings allegedly were each supposed to finance a particular assisted living or memory care facility in Georgia or Alabama. From the funds he commingled, Edwards allegedly diverted investor money for personal use as well as to finance other unrelated bond offerings. The SEC also alleged that Nunamaker received a portion of these commingled funds from Edwards. Eight of the nine offerings at issue in the SEC’s complaint involved the purchase of a facility from Christopher Brogdon, whom the SEC previously sued and obtained a judgment against in connection with a series of similar bond offerings.
On January 20, 2017, the day the SEC filed this action, the court issued an order freezing the assets of Edwards and Nunamaker. The court also appointed a temporary receiver over the facilities underlying the bond offerings and entered judgment as to defendant Todd Barker, Edwards’ business partner.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, or [email protected]. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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