AL Man Indicted For Alleged Securities Fraud

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AL Man Indicted For Alleged Securities Fraud

Jason Todd Caudle of Sylacauga, Alabama has been indicted for alleged securities fraud, following a March 11, 2016 arrest. The grand jury issued a five-count indictment. On the same day, Caudle posted a bond of $250,000 and was released. Caudle then failed to appear for his arraignment on April 5, 2016 and was arrested again and returned to the Talladega County Jail on April 19, 2016.

The grand jury’s indictment charged Caudle with one count of Sale of Unregistered Securities and one count of Sale of Securities by an Unregistered Agent; which are Class C felonies, carrying a range of punishment from one year and one day to 10 years’ imprisonment and not more than a $15,000 fine per charge, upon conviction. Additionally, the indictment charges Caudle with three counts of Fraud in Connection with the Sale of Securities for making misrepresentations or omissions of material fact to an investor; for engaging in an act, practice or course of business which operates as a fraud or deceit upon an investor; and for employing a device, scheme or artifice to defraud an investor. The fraud charges are Class B felonies, carrying a range of punishment from two to 20 years’ imprisonment and not more than a $30,000 fine per charge, upon conviction.

According to the indictment, Caudle told two Alabama investors that he operated a business called Hard Rock Properties, LLC, through which Caudle owned, managed, and rented residential real estate in Alexander City, Alabama. Caudle solicited investments by offering investment contracts and/or ownership shares in Hard Rock Properties to the investors. Caudle obtained funds from the investors beginning in April 2011. After the initial investment, Caudle later secured further funds from the investors, by misrepresenting that funds were needed for underwriting fees and inspections, but no such expenses existed. The indictment alleges that Caudle did not in fact own the rental properties, and that Hard Rock Properties did not manage the properties. It further alleges that Caudle produced falsified and/or misleading documents to the investors to further the scheme, and that the investors’ funds were used for personal expenses. Caudle was not registered with the Alabama Securities Commission as a dealer or agent of securities in Alabama, nor were the investment contracts or shares he offered registered with the Commission as securities to be sold in Alabama, as required by the Alabama Securities Act.

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.

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