The Securities and Exchange Commission (SEC) has charged three men in an
alleged investment scheme involving approximately 450 investors. The announcement
came September 21, 2010, when the SEC filed its complaint in federal court
in Minneapolis, Minnesota.
According to the SEC, the three men, Todd Duckson of Prior Lake, Minn.,
Timothy Redpath of Mill Valley and Michael Bozora of Belvedere are accused
of raising $21 million from unsuspecting investors. The money was allegedly
placed in the Capital Solutions Monthly Income Fund only after the fund’s
sole business partner defaulted on its obligations to the fund in May 2008.
Mr. Redpath and Mr. Bozora originally launched the fund in 2004. The SEC
claims that the fund was making real estate loans to a single borrower
and that after the fund foreclosed on the borrower’s real estate
projects, the three men continued to raise money from new investors. They
eventually raised a total of $74 million from approximately 450 investors
in the apparent investment scam.
The suspects have also been accused of using the new investors’ funds
to pay existing investors in the alleged
True North Finance Corp., a Minneapolis real estate lending company and
True North’s CFO Owen Mark William have also been charged with accounting
fraud for their involvement with the investment fraud case.