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SEC suit says man misused funds of 17
By WILLIAM R. LEVESQUE
© St. Petersburg Times, TAMPA -- The owner of a Tampa financial services company misappropriated about $1.7-million from 17 investors, most of them elderly, federal regulators said in a lawsuit filed in U.S. District Court on Tuesday. The lawsuit by the Securities and Exchange Commission accuses Charles F. Morgan, 56, owner and president of Morgan Financial Services, of misusing investments provided to him or his firm from 1991 to 2000. The SEC said Morgan used money without investor knowledge to give loans to the Consource Plastic Recycling Corp., a Tampa company that is now bankrupt and no longer in operation. Morgan was a former officer of Consource and its largest shareholder. He could not be reached for comment. The SEC also accused Morgan of using money from the 17 to pay interest due other investors, and using investors' funds to buy stock in Consource.The lawsuit said Morgan issued promissory notes to investors promising returns of 10 to 12 percent. The suit alleges Morgan told investors their money was not at risk. Morgan issued monthly financial statements to investors, "thereby lulling investors into believing that their investments were safe," the lawsuit said. The suit seeks to keep Morgan from continuing to do business. SEC attorney Teresa Verges said Morgan has agreed to allow the court to enter a judgment against him. Once that is done, the SEC is expected to enter another order essentially barring him from the investment business, she said. Morgan's company is no longer operating, and Morgan is unemployed, the SEC said. As part of his agreement with the SEC, the government waived any fines and restitution. "He has no assets," Verges said. "What this does is get him out of the business completely. He's cooperated with us completely." Morgan has not admitted any wrongdoing, has no criminal record and has not been charged criminally.
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From the Times Ernest Hooper |
