F
rench Duo Faces $40M SEC Lawsuit Over Real Estate Scheme
A Florida federal judge has denied the request of two French half-brothers to dismiss a Securities and Exchange Commission lawsuit alleging they misappropriated $40 million from investors in a real estate investment scam. The brothers had argued that the investment contracts at issue were not securities, but the judge ruled otherwise.
The SEC claims the brothers used their company to solicit investments for various real estate projects, promising unusually high returns. However, instead of using investor funds as promised, they allegedly diverted millions into their own pockets and other unauthorized uses. The case is now set to proceed.
