Dennis Woods Bowden, one of the top executives at the now-defunct AmeriFirst Funding Corp. in Dallas, was indicted May 26 in U.S. District Court in Dallas on nine counts of securities fraud and six counts of mail fraud.
Bowden, on his own and through sales agents, allegedly sold millions of dollars of Secured Debt Obligations and Collateral Secured Debt Obligations.
The indictments allege that Bowden lied to investors about the safety and bank backing of these securities. Bowden also allegedly spent some of the investors' money on an airplane, a sports car, a condominium, and real estate for used car lots.
Jeffrey Bruteyn, the founder of AmeriFirst, was convicted in U.S. District Court in Dallas on April 14 on federal fraud charges for his role in the scam.