WASHINGTON – Federal regulators have filed civil fraud charges against a man who they say raised about $3.4 million in a scam targeting deaf investors.
The Securities and Exchange Commission announced the charges Friday against Jody Dunn of Corinth, Texas. The SEC says in a lawsuit that Dunn, who is deaf, bilked more than 7,000 people by offering investments in life-insurance policies that never delivered on promised big returns.
Dunn allegedly used $353,000 of the money he raised to cover his mortgage and other expenses, and put the rest into a firm's offshore accounts.
The firm claimed to sell investments in insurance policies bought at a discount from the terminally ill or elderly. The SEC said none of the deaf investors' money was used for that purpose.
Dunn couldn't be reached.
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