SEC v. Robert A. Kasirer; Jerold V. Goldstein; Joel T. Boehm; James E. Iverson; and Victor P. Dhooge, No. LR-18774, Northern District of Illinois — Press Release
raw: Robert A. Kasirer, et al.
Robert A. Kasirer, et al., No. LR-18774
The SEC charged Robert A. Kasirer, Jerold V. Goldstein, Joel T. Boehm, James E. Iverson, and Victor P. Dhooge with orchestrating a $131 million Ponzi scheme through eleven fraudulent municipal bond offerings for Heritage Housing Development, diverting proceeds to cover earlier project shortfalls, misleading over 1,800 investors across 36 states, and causing all facilities to default, with the SEC seeking injunctions, disgorgement, and civil penalties.
The SEC filed a complaint against five defendants—Kasirer, Goldstein, Boehm, Iverson, and Dhooge—for orchestrating a $131 million fraud through eleven municipal bond offerings tied to Heritage Housing Development, a company controlled by Kasirer. The defendants falsely claimed bond proceeds would fund specific healthcare facilities but instead commingled and diverted funds from newer offerings to cover cash shortfalls in earlier projects, operating a three-year Ponzi scheme that misled over 1,800 investors in 36 states. All Heritage facilities eventually defaulted, and the SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against all defendants, alleging that Iverson and Dhooge knowingly underwrote the offerings while Boehm issued false legal opinions.
The SEC filed a complaint on June 29 in the U.S. District Court for the Northern District of Illinois against Robert A. Kasirer, Jerold V. Goldstein, Joel T. Boehm, James E. Iverson, and Victor P. Dhooge for orchestrating a $131 million fraud involving eleven municipal bond offerings. The defendants, acting in concert, claimed the bond proceeds would finance specific healthcare facilities developed by Heritage Housing Development, Inc.—a company controlled by Kasirer—but in reality, proceeds were systematically diverted from newer offerings to cover shortfalls in earlier projects, creating a three-year Ponzi scheme. Over 1,800 investors across 36 states were deceived by misleading offering documents, and by February 2000, all ten Heritage facilities in Texas, Florida, Illinois, and California had defaulted on their bond obligations. Kasirer and Goldstein are alleged to have personally directed the commingling and misapplication of funds, including payments to themselves and family members. Iverson and Dhooge, as representatives of the underwriter Miller & Schroeder, are accused of knowingly managing the offerings despite awareness of the fraud, while Boehm, as legal counsel, issued favorable legal opinions despite knowing the proceeds were being wrongfully diverted. The SEC is seeking permanent injunctions, disgorgement of all ill-gotten gains with prejudgment interest, and civil penalties against all five defendants to hold them accountable for the widespread investor harm.
Exhibits & Attached Documents (1)
Extracted insights
- $131.00M $131 million $100M–$1B
- agency the sec's complaint
- The United States Securities and Exchange Commission ("Commission") announced it filed a complaint in the United States District Court for the Northern District of Illinois on June 29 against Robert A. Kasirer, Jerold V. Goldstein, Joel T. Boehm, James E. Iverson and Victor P. Dhooge
- The United States Securities and Exchange Commission ("Commission") filed a complaint in the United States District Court for the Northern District of Illinois on June 29 against Robert A. Kasirer, Jerold V. Goldstein, Joel T. Boehm, James E. Iverson and Victor P. Dhooge
- The Complaint alleges the Defendants, acting in concert, fraudulently offered and sold over $131 million of municipal revenue bonds to members of the public
- The SEC's Complaint alleges the Defendants offered and sold the bonds in question through a series of eleven offerings underwritten
The United States Securities and Exchange Commission ("Commission") announced that it filed a complaint in the United States District Court for the Northern District of Illinois on June 29 against Robert A. Kasirer, Jerold V. Goldstein, Joel T. Boehm, James E. Iverson and Victor P. Dhooge. The Complaint alleges that the Defendants, acting in concert, fraudulently offered and sold over $131 million of municipal revenue bonds to members of the public. The SEC's Complaint alleges that the Defendants offered and sold the bonds in question through a series of eleven offerings underwritten by the now-defunct, Minnesota firm of Miller & Schroeder Financial, Inc. ("Miller & Schroeder"). The Complaint alleges that the Defendants sold the bonds to more than 1,800 investors residing in thirty-six states. The Complaint alleges that the purported purpose of each bond offering was to finance the development of a specified healthcare facility by Heritage Housing Development, Inc., a company effectively controlled by Defendant Kasirer ("Heritage"). The Complaint alleges that all together, there were ten Heritage facilities located in the states of Texas, Florida, Illinois and California. The Complaint alleges that the Defendants represented in offering documents that the proceeds from each bond offering would be used to finance one specific healthcare facility. The Complaint alleges that in fact, however, the costs of developing the Heritage facilities, including payments to Defendant Kasirer and some of his family members, outstripped the proceeds from the facilities' respective bond offering. The Complaint alleges that the Defendants covered the resulting cash shortfalls by operating a type of Ponzi scheme, commingling bond proceeds and diverting bond proceeds from more recent offerings to pay the expenses of earlier projects. The Complaint alleges that this diversion of bond proceeds from one project to another went on for three years. The Complaint alleges that beginning in February 2000, the Heritage facilities ran out of money and defaulted on their obligations to bondholders. Presently, all the Heritage facilities are in default on their bonds. The Complaint alleges that Defendants Kasirer and Goldstein controlled Heritage and personally directed the commingling and misapplication of bond proceeds and that Defendants Iverson and Dhooge, representatives of Miller & Schroeder, managed the underwriting of the various bond offerings, despite their knowledge that bond proceeds were being wrongfully commingled and diverted. The Complaint alleges that Defendant Boehm, an attorney who acted as counsel for Miller & Schroeder in the bond offerings, issued favorable legal opinions despite his knowledge that bond proceeds were being wrongfully commingled and diverted. The Commission seeks the entry of permanent injunctions, disgorgement of any ill-gotten gains plus prejudgment interest and civil penalties against Kasirer, Goldstein, Boehm, Iverson and Dhooge. SEC Complaint in this matterThe United States Securities and Exchange Commission ("Commission") announced that it filed a complaint in the United States District Court for the Northern District of Illinois on June 29 against Robert A. Kasirer, Jerold V. Goldstein, Joel T. Boehm, James E. Iverson and Victor P. Dhooge. The Complaint alleges that the Defendants, acting in concert, fraudulently offered and sold over $131 million of municipal revenue bonds to members of the public. The SEC's Complaint alleges that the Defendants offered and sold the bonds in question through a series of eleven offerings underwritten by the now-defunct, Minnesota firm of Miller & Schroeder Financial, Inc. ("Miller & Schroeder"). The Complaint alleges that the Defendants sold the bonds to more than 1,800 investors residing in thirty-six states. The Complaint alleges that the purported purpose of each bond offering was to finance the development of a specified healthcare facility by Heritage Housing Development, Inc., a company effectively controlled by Defendant Kasirer ("Heritage"). The Complaint alleges that all together, there were ten Heritage facilities located in the states of Texas, Florida, Illinois and California. The Complaint alleges that the Defendants represented in offering documents that the proceeds from each bond offering would be used to finance one specific healthcare facility. The Complaint alleges that in fact, however, the costs of developing the Heritage facilities, including payments to Defendant Kasirer and some of his family members, outstripped the proceeds from the facilities' respective bond offering. The Complaint alleges that the Defendants covered the resulting cash shortfalls by operating a type of Ponzi scheme, commingling bond proceeds and diverting bond proceeds from more recent offerings to pay the expenses of earlier projects. The Complaint alleges that this diversion of bond proceeds from one project to another went on for three years. The Complaint alleges that beginning in February 2000, the Heritage facilities ran out of money and defaulted on their obligations to bondholders. Presently, all the Heritage facilities are in default on their bonds. The Complaint alleges that Defendants Kasirer and Goldstein controlled Heritage and personally directed the commingling and misapplication of bond proceeds and that Defendants Iverson and Dhooge, representatives of Miller & Schroeder, managed the underwriting of the various bond offerings, despite their knowledge that bond proceeds were being wrongfully commingled and diverted. The Complaint alleges that Defendant Boehm, an attorney who acted as counsel for Miller & Schroeder in the bond offerings, issued favorable legal opinions despite his knowledge that bond proceeds were being wrongfully commingled and diverted. The Commission seeks the entry of permanent injunctions, disgorgement of any ill-gotten gains plus prejudgment interest and civil penalties against Kasirer, Goldstein, Boehm, Iverson and Dhooge. SEC Complaint in this matter