Emvest Mortgage Fund, LLC, Emvest, Inc., and Milon Lyle Brock

On December 3, 2004, the SEC obtained a preliminary injunction, asset freeze, and other relief against Emvest Mortgage Fund, LLC and others in connection with an alleged Ponzi scheme. The SEC claimed the defendants fraudulently told investors that their investments would be used to make and purchase loans secured by real property. The SEC alleged the defendants actually used substantial amounts of capital from new investors to pay returns to existing investors and to cover the Fund’s operating losses. In addition, the SEC alleged that despite an express prohibition in the Fund’s prospectus, the defendants used investor capital to pay finder’s fees or commissions to companies affiliated with the Fund. For more information about the SEC’s action, you can read Litigation Release No. 18978 (Nov. 18, 2004).

The Court also appointed Dennis M. Murphy as Receiver. For the latest information, you can visit the Receiver’s website.

http://www.sec.gov/divisions/enforce/claims/emvest.htm