sec-litreleases litigation_release 65 KB 3,385 chars

SEC v. Richard J. Briden; Empowerment Funding Group, LLC; and Infopro Group, Ltd., No. LR-16134, District of Massachusetts — Press Release

raw: Richard J. Briden

Richard J. Briden, No. LR-16134

Caption: SEC v. Richard J. Briden, et al.

summary

Richard J. Briden, along with his companies Empowerment Funding Group and Infopro Group, defrauded investors by selling non-existent prime bank securities, promising risk-free returns of up to 100% weekly or 640% over 40 weeks, collecting $295,000 from seven investors and proof of $1 million from three others, then wiring funds to Guernsey and fabricating excuses for non-payment, leading to SEC charges and ongoing investigation.

paragraph

Richard J. Briden and his companies, Empowerment Funding Group, LLC and Infopro Group, Ltd., violated federal securities laws by promoting fraudulent prime bank trading programs that do not exist. Briden solicited $295,000 from seven investors through the 'Acorn' program, promising 640% returns over 40 weeks, and secured proof of $1 million from three others for higher-tier programs, but never invested any funds—instead wiring all money to Mutual Assets Limited in Guernsey. The SEC charged them with violations of Sections 5(c) and 17(a) of the Securities Act and Sections 10(b), 15(a), and Rule 10b-5 of the Exchange Act, seeking permanent injunctions and civil penalties as the investigation continues.

narrative

Richard J. Briden, along with his companies Empowerment Funding Group, LLC and Infopro Group, Ltd., orchestrated a fraudulent scheme by promoting non-existent prime bank securities through internet websites, bulletin boards, and emails. He falsely promised investors risk-free returns of up to 100% per week for $1 million minimum programs and 640% over 40 weeks for the lower-tier 'Acorn' program, which accepted investments under $1 million. Briden convinced three individuals to provide proof of $1 million each and signed powers of attorney, while securing $295,000 from seven investors—none of which was ever invested. In October 1998, he wired all funds to a bank account under Mutual Assets Limited in Guernsey, where they remain inaccessible. To explain the lack of returns, Briden fabricated excuses such as bank holidays, trader illnesses, and bank mix-ups. The SEC alleges he earned up to 30% commissions on promised returns and violated Sections 5(c) and 17(a) of the Securities Act and Sections 10(b), 15(a), and Rule 10b-5 of the Exchange Act. The Commission seeks permanent injunctions and civil monetary penalties, and the investigation remains ongoing as the funds are deemed irretrievable and the entire scheme exposed as fictitious.

Enriched metadata

Scheme: unregistered-securities (100%)
Court: District of Massachusetts
Entity: Richard J. Briden

Classified unregistered-securities(confidence 100%). EDGAR detection: forms Form D/S-1· recall 41% / precision 30%. detection rule →

Extracted insights

Dollar amounts 2

$1.00M $1 million $1M–$10M
$295K $295,000 $100K–$1M

Entities 4

company empowerment funding group, llc
company infopro group, ltd
person richard j. briden
agency Securities and Exchange Commission

Triples 19

Richard J. Briden conducted fraudulent offering of prime bank securities over the Internet
Richard J. Briden sold interests in prime bank trading program to seven investors
Richard J. Briden violated registration and antifraud provisions of federal securities laws
Richard J. Briden offered prime bank trading programs requiring $1 million minimum investment since early 1998
Richard J. Briden promised investors as much as 100% return per week in risk-free trading programs
Richard J. Briden earned commission of up to 30% of investor's return
Richard J. Briden convinced at least three individuals to provide proof of $1 million to invest
Richard J. Briden convinced seven investors to invest $295,000 in Acorn prime bank trading program
Richard J. Briden promised investors 640% return per 40 week period in Acorn program
Richard J. Briden wired $295,000 to bank account in name of Mutual Assets Limited in Guernsey in October 1998
Richard J. Briden violated Sections 5(c) and 17(a) of Securities Act of 1933
Richard J. Briden violated Sections 10(b) and 15(a) of Securities Exchange Act of 1934 and Rule 10b-5
Empowerment Funding Group, LLC violated Sections 5(c) and 17(a) of Securities Act of 1933
Empowerment Funding Group, LLC violated Sections 10(b) and 15(a) of Securities Exchange Act of 1934 and Rule 10b-5
Infopro Group, Ltd violated Sections 5(c) and 17(a) of Securities Act of 1933
Infopro Group, Ltd violated Sections 10(b) and 15(a) of Securities Exchange Act of 1934 and Rule 10b-5
SEC filed Complaint against Richard J. Briden, Empowerment Funding Group, LLC and Infopro Group, Ltd
SEC seeks permanent injunctions prohibiting defendants from violating securities provisions
SEC seeks civil monetary penalties pursuant to Section 20(d) of Securities Act and Section 21(d)(3) of Exchange Act

View original SEC litigation releasesec.gov

Extracted body text (3,385c)

SECURITIES AND EXCHANGE COMMISSION v. RICHARD J. BRIDEN, EMPOWERMENT FUNDING GROUP, LLC AND INFOPRO GROUP, LTD (United States District Court for the District of Massachusetts, 99CV11009RCL) The Commission announced the filing today of a Complaint in the United States District Court for the District of Massachusetts against Richard J. Briden ("Briden"), an Ashland, Massachusetts business consultant and two corporations Briden founded, Empowerment Funding Group, LLC ("Empowerment") and Infopro Group, Ltd. ("Infopro"). The Commission's Complaint alleges that Briden conducted a fraudulent offering of prime bank securities over the Internet. He also sold interests in another prime bank trading program to seven investors. As the Commission and several courts have stated, prime bank instruments do not exist. By this conduct, Briden violated the registration and antifraud provisions of the federal securities laws. The Commission's Complaint alleges that, since at least early 1998, Briden, through his two companies, offered over the Internet prime bank trading programs which required a $1 million minimum investment. Briden used Internet websites, electronic bulletin board postings and Internet e-mails to offer the programs. Briden falsely promised investors as much as a 100% return per week in risk-free trading programs. Briden claimed that no funds would leave the investor's bank account. The Complaint alleges that Briden stood to earn a commission of up to 30% of the investor's return. Briden convinced at least three individuals to provide him with proof of $1 million to invest and signed powers of attorney giving him the authority to "commit" the funds to invest in a prime bank trading program. Briden never successfully invested any funds in these "Million Dollar Programs." The Complaint also alleges that Briden convinced seven investors, three of whom were from Massachusetts, to invest $295,000 in another "risk-free" prime bank trading program. This program was known as "Acorn," symbolic of the fact that it was willing to accept investments of less than $1 million. The Complaint alleges that Briden promised the investors a return of 640% per 40 week period. Briden was to earn 30% of any returns. In October 1998, Briden wired the seven investors' money to a bank account in the name of Mutual Assets Limited ("Mutual") in Guernsey in the Channel Islands. The investors have not received any of their promised return. The Commission alleges that Briden has explained the failure to pay returns with excuses such as, bank holidays, the sickness of some of the traders, bank mix-ups and various other reasons. According to the Commission's Complaint, however, the funds are now beyond Briden's control and never will be invested in any legitimate manner. The Commission's Complaint alleges that in connection with this scheme, Briden, Empowerment and Infopro violated Sections 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act"), Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder. The Commission seeks permanent injunctions prohibiting the defendants from violating these provisions. In addition, the Commission seeks the imposition of civil monetary penalties pursuant to Section 20(d) of the Securities Act and Section 21(d)(3) of the Exchange Act . The investigation is continuing.

OCR text (3,385c · plain-text · 99% conf)