U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23317 / August 13, 2015
Securities and Exchange Commission v. Colonial Tidewater Realty Income Partners, LLC, et al., Civil Action No. 1:15-cv-2401 (D. Md.)
Three Maryland Men Settle Charges They Defrauded Investors in Real Estate Investment Company
The Securities and Exchange Commission today announced that three Maryland men have agreed to settle charges that they defrauded investors in a company that owns and operates residential and commercial real estate. Boston-based Signator Investors Inc. and one of its supervisors agreed to settle separate charges that they failed to supervise two of the men who worked in Signator’s Maryland office.
The SEC alleges that James R. Glover orchestrated the fraud by enticing family, friends, and fellow church members to become his clients at Signator and invest in Colonial Tidewater Realty Income Partners, which he co-managed. Most of Glover’s clients were financially unsophisticated and relied on him for investment guidance. Some even described him as “another dad” or “part of the family.”
According to an SEC order instituting a settled administrative proceeding against Signator and Gregory J. Mitchell, who was a supervisor in Signator’s Maryland office:
Colonial Tidewater, Glover, and Hill agreed to settle the SEC’s charges without admitting or denying the allegations and consented to the appointment of a receiver to take control of Colonial Tidewater. Under settlements that are subject to court approval, Colonial Tidewater would be required to pay $527,844 in disgorgement, $66,542 in prejudgment interest, and a $725,000 penalty. Glover agreed to be barred from the securities industry and pay $839,128 in disgorgement, $64,977 in prejudgment interest, and a $450,000 penalty. Hill agreed to pay a $75,000 penalty.
In a separate SEC order, Williams agreed to settle charges that he violated provisions of the Investment Advisers Act. Without admitting or denying the allegations, he agreed to be barred from the securities industry and pay $94,191 in disgorgement, $9,854 in prejudgment interest, and a $94,191 penalty.
Without admitting or denying the SEC’s findings, Signator and Mitchell agreed to penalties of $450,000 and $15,000 respectively. Signator agreed to be censured and Mitchell agreed to be suspended from acting in a supervisory capacity for one year.
Funds collected from all the parties will go into a Fair Fund for injured investors.
The SEC’s investigation was conducted by Suzanne C. Abt, Assunta Vivolo, Scott A. Thompson, and Kelly L. Gibson in the Philadelphia Regional Office and supervised by G. Jeffrey Boujoukos. The litigation will be handled by Christopher R. Kelly and David L. Axelrod. The investigation followed an examination conducted by James O’Leary and Aidan Busch of the Philadelphia office under the supervision of Frank A. Thomas. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.
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