A U.S. District Court jury in Dallas convicted Jeffrey C. Bruteyn of securities fraud charges resulting from his scheme to defraud investors in Texas and Florida. Bruteyn was convicted on April 14, 2010, on all nine counts of an indictment returned by a grand jury in May 2009.
Bruteyn raised more than $50 million from at least 500 investors, many of whom were retired and looking for safe and secure investment, according to evidence in the case. Bruteyn falsely claimed that the investments he offered and sold to investors were guaranteed by a commercial bank and backed by two large reinsurers and protected up to $100,000 per account.
Judge Barbara Lynn is scheduled to sentence Bruteyn on July 23, 2010. He faces a maximum sentence of 20 years in prison and $5 million fine on each count.
The Texas State Securities Board helped investigate and prosecute Bruteyn, and Stephanie Tourk, a Texas State Securities Board attorney, is serving as a Special Assistant U.S. Attorney in a related case against Bruteyn and other principals of the defunct AmeriFirst Funding Corp. and AmeriFirst Acceptance Corp.