On October 25, 2012, the SEC amended its complaint filed on April 15, 2011 against AIC, Inc. (“AIC”), a financial services holding company for three broker-dealers, Community Bankers Securities, LLC (“CB Securities”), John B. Guyette (“Guyette”) and John R. Graves (“Graves”), who was also an investment adviser, and its President and CEO, Nicholas D. Skaltsounis (“Skaltsounis”) (collectively, the “Defendants”). The amended complaint also named AIC’s subsidiaries as relief defendants, Allied Beacon Partners, Inc. (f/k/a Waterford Investor Services, Inc.) (“ABP”), Advent Securities, Inc. (“Advent”), and Allied Beacon Wealth Management, LLC (f/k/a CBS Advisors, LLC) (“ABWM”) (collectively, the “Relief Defendants”). The amended complaint alleged that, from at least January 2006 through November 2009, Skaltsounis devised and orchestrated an offering fraud and Ponzi scheme, directly and through registered representatives, including Guyette and Graves, by offering and selling more than $7.7 million in AIC promissory notes and stock to at least 74 investors in at least 14 states, many of whom were elderly, unsophisticated brokerage customers of CB Securities. Skaltsounis, Guyette, and Graves misrepresented and omitted material information to investors relating to, among other things, the safety and risk associated with the investments, the rates of return on the investments, and how AIC would use the proceeds of the investments. See Amended Complaint.

The Court entered final judgments against each of the Defendants and Relief Defendants ordering for the payment of disgorgement, prejudgment interest, and civil money penalties. The SEC was ordered to hold all funds paid, together with interest and income earned thereon (collectively, the “Fund”), pending further order of the Court. See AIC’s Amended Final Judgment, CB Securities’ Final Judgment, Guyette’s Final Judgment, Graves’ Final Judgment, Skaltsounis’ Final Judgment, ABP’s Final Judgment, Advent’s Final Judgment, and ABWM’s (n/k/a CL Wealth Management, LLC) Final Judgment.

As of December 26, 2016, a total of $72,940.08 has been paid into the Fund for distribution to injured investors. Any additional outstanding monies received from the Defendants and/or Relief Defendants will be added to the Fund for distribution.

On June 10, 2016, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Fund.

For more information, please contact the SEC:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov