Complaint Filed Against Investment Adviser, Principal, and Affiliates in Salinas Case
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 investors safe, 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.