Archive for December 23rd, 2009

SEC Charges Texas Insurance Agent in Million Dollar Scam

Wednesday, December 23rd, 2009
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By Matt Ackermann

December 23, 2009

The Securities and Exchange Commission filed securities fraud charges against an Austin, Texas investment advisor and two of his businesses alleging he conducted a “multi-million dollar scam” that used former professional football players to promote its offerings.  

The SEC alleged in a filing Tuesday that Kurt B. Barton and Triton Financial LLC, raised more than $8.4 million from approximately 90 investors by selling “investor units” in an affiliate, Triton Insurance, and telling investors that their money would be used to purchase an insurance company.  

The SEC alleged that Barton, who is chief executive officer of Triton, instead used the funds to pay day-to-day expenses at Triton Financial and its affiliate. Triton co-sponsors the Heisman Trophy Trust, an organization that annually honors the best player in college football.

According to the complaint, which was filed in federal court in Austin, Triton used former football players as well as stockbrokers and other salesmen to promote securities and recruit potential investors.  The investment advisory firm, which according to its Web site invests in real estate and manages the securities portfolios of athletes and other clients, has raised more than $50 million for at least 40 ventures since 2004, according to the complaint.

Toby Galloway, a regional trial counsel in the SEC’s Fort Worth regional office, said that the former players aren’t facing any charges right now, but the SEC continues to “look at everyone involved.”

“There is no doubt that having these gridiron greats out there selling these investments certainly played a role in Barton stiff arming money from investors,” he said.

Former Heisman Trophy winners Ty Detmer and Chris Weinke work for Triton along with Jeff Blake, a former NFL quarterback Blake who directs Triton’s “athlete services” department, which is a marketing arm for Triton that recruits players as clients.

“By associating with former football stars, they were able to build a facade of legitimacy and gain investor trust,” said Rose Romero, the director of the SEC’s Fort Worth regional office.

Barton and Triton, which has been registered with the Texas State Securities Board as an investment advisory firm since June 2006, have consented to court orders freezing their assets.  

According to an emailed statement from Barton’s attorney, Joe Turner, Barton “has voluntarily consented to the appointment of a receiver. He intends to work closely with the receiver in an effort to ensure that the investors, many of whom are friends and relatives, do not lose their money.”

In March, Sports Illustrated published an article that described how Triton used former football players to promote its business. Following the article, the Texas State Securities Board conducted an examination of the company. According to the SEC’s complaint, Barton and Triton provided the Texas State Securities Board “with altered and fabricated documents during the examination that followed the article’s publication.

The SEC charged Barton and Triton with securities fraud and seeks permanent injunctions, disgorgement of illegal gains and financial penalties.  The regulator also wants an asset freeze and a receiver over defendants’ assets and operations.

Hussein Blasts Insurance Companies – Insurance Companies Blamed for Crisis in Health Care

Wednesday, December 23rd, 2009

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Commander in Chief B. Hussein Obama continues to exhort his base with weekly emails. Below is an exerpt of his most recent email to the masses:

“As with any legislation, compromise is part of the process. But I’m pleased that recently added provisions have made this landmark bill even stronger. Between the time when the bill passes and the time when the insurance exchanges get up and running, insurance companies that try to jack up their rates do so at their own peril. Those who hike their prices may be barred from selling plans on the exchanges.”

“And while insurance companies will be prevented from denying coverage on the basis of pre-existing conditions once the exchanges are open, in the meantime there will be a high-risk pool where people with pre-existing conditions can purchase affordable coverage.”

“A recent amendment has made these protections even stronger. Insurance companies will now be prohibited from denying coverage to children immediately after this bill passes. There’s also explicit language in this bill that will protect a patient’s choice of doctor. And small businesses will get additional assistance as well.”

“These protections are in addition to the ones we’ve been talking about for some time. No longer will insurance companies be able to drop your coverage if you become sick and no longer will you have to pay unlimited amounts out of your own pocket for treatments that you need.”

Editor’s Note: Hussein knows that with the passing of the Health Care Reform Bill, insurance rates will necessarily rise. And rise sharply. A Wellpoint study confirms this, with group health rates going up as high as 100% to cover new mandates such as pre-existing conditions prohibition, tier rating basis, community rating, etc. He is preparing his base for the next battle – eviserate health insurance companies so that all will exit the market and a national single payer plan will be required. With only four major health insurance companies left in the national marketplace, it is not unreasonable to believe that they will change their business model from health care to property & casualty cover.

If health insurance companies are so bad, making obscene profits at the expense of the sick, why are there only 4 major players left in the market? And, is a 3-5% profit margin obscene? There are several thousand insurance companies in the United States, and 99% of them dont mess with health insurance. There must be a reason why.

ObamaCare Bill Addresses Gun Control

Wednesday, December 23rd, 2009

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The 2,000 page plus monstronsity of a Bill has probably not be read by too many people, especially those idiots in Congress who voted for it. Under “Wellness and Prevention Programs” section, gun control is addressed. The Secretary of Health “may not” (as opposed to “is prohibited”) from collecting data on who owns a gun, etc. So, what other “data” is big government to be empowered to collect about us, common citizens?  This is Orwellian – HealthCare Bill – Firearms

If you think this is “fishy”, it is your responsibility to report this to the White House at flag@whitehouse.gov . Also, if you overhear any of your neighbors speak critically of the Democrat Party, please call Harry Reid or Nancy Pelosi immediately. You will be rewarded.  

MIAC25