The SEC filed a complaint recently in the now infamous investment scam
that allegedly involved Houston AAU coach David Salinas.
David Salinas, now deceased, was a Houston money-manager and alleged con
man who recently made headlines due to a reputed scam that cost 21 coaches,
a Texas church, a New Mexico athletic director, and other investors a
total of more than $50 million. The SEC was investigating Salinas prior
to his death, but had not filed any complaints or made any comments about
the case until now.
Monday's complaint was filed against Houston investment adviser Select
Asset Management LLC ("Select Asset"), its principal Brian A.
Bjork, Select Asset Fund I, LLC, Select Asset Prime Index Fund, LLC, the
estate of recently deceased J. David Salinas, and two Salinas business firms.
The complaint alleges that Bjork and Salinas solicited investments in two
fraudulent securities schemes. Bjork and Salinas allegedly "promised
fixed income from highly rated corporate and other bonds" in the first scheme,
but never actually purchased the bonds. In the second scheme, Bjork and
Select Capital allegedly solicited investments in two private funds managed
by Bjork, Select Asset, and Select Capital. The complaint accuses the
defendants of commingling investor assets, making undisclosed transfers,
and failing to conduct due diligence.
An estimated 152 investors were defrauded in the two schemes, which together
raised a total of approximately $52 million. The SEC is seeking emergency
relief, disgorgement plus prejudgment interest, penalties, and the imposition
of permanent injunctions.
For more information about the case, click
here. To read the SEC litigation release, click