The president and CEO of Global Healthcare REIT, Atlanta, has been charged with duping investors for $190 million in placement offerings and other investments, according to the Securities and Exchange Commission (SEC).
Christopher F. Brogdon, the focus of the charges, is accused of accepting funds from investors on the promise that the money would be used to buy, build or renovate long-term care facilities and would earn the investors interest on their investments.
Instead, the SEC says, Brogdon used the investors’ money to support his other business and personal ventures, while paying investors through borrowed lines of credit and other means. Several long-term care properties are embroiled in the muddy financial mix among the 43 business entities Brogdon owns or controls, the SEC claim states.
At least some fo those properties are struggling, and would be further damaged by Brogdon’s comingling of funds, the SEC claims.
The SEC is pursuing “the return of ill-gotten gains with interest and penalties,” and “also seeks permanent injunctions against further violations of the securities laws, and a bar prohibiting Brogdon from serving as an officer or director of a public company,” according to an SEC press release.
Brogdon, who until recently also served as a board member of AdCare, resigned that position on Oct. 13.