According to an Investment News report, three officers and founders of Provident Royalties Inc. received prison time for participating in a fraudulent Ponzi scheme involving the offer and sale of private placement securities. Brendan Coughlin and Henry Harrison received sentences of twenty-one months and Joseph Blimline was sentenced to twelve years in federal prison. The CFO, W. Mark Miller, received a sentence of six months in prison and six months under home confinement. The four men were also ordered to pay $2.3 million in restitution.
The sentences were handed down a week before the SEC lifted a ban against advertising the sale of private placement securities. Some regulators believe that lifting the ban is reckless and will result in more fraudulent activity.
If you believe you have been victimized by securities fraud, financial malpractice, or theft by a FINRA registered broker, please call the securities attorneys of the Costello Law Group at (877) 418-0003 for a free consultation.
To read more about this please visit: http://www.investmentnews.com/article/20130710/FREE/130719993