Patrick Henderson 2 p.m., May 30
Radio investment adviser charged with fraud
La Jolla's George Charles Cody Price touted expertise on "The Wealth Weekend Hour"
The Securities and Exchange Commission (SEC) has charged La Jolla investment adviser George Charles Cody Price, and his company, ABS Manager LLC, with fraudulent misrepresentation and other violations of securities laws. Price, who until early 2011 co-hosted a KFMB San Diego radio show called "The Wealth Weekend Hour," raised $18.8 million from about 35 investors, promising returns of 18%. Without telling investors, according to the SEC, Price put the victims in "Interest Only" or "Inverse Interest Only" derivatives, which are among the riskiest of these kinds of derivatives. They only receive interest from underlying mortgages and have no principal component. As mortgages are prepaid, paid down, re-financed or defaulted, the interest-only stream ceases, explains the SEC. On the radio and in documents, Price falsely represented his professional experience and grossly inflated funds under management, says the government. Price told investors the fund was safe and fit for retirement accounts, charges the securities agency. He concealed the true nature of the investments in the radio programs, newsletters and emails. He told investors the funds under management were growing healthily, when in fact they were declining, says the SEC.
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