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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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Comments

MURPHYJUNK Feb. 26, 2013 @ 8:11 a.m.

I always wonder that if these "advisors" know so much why don't they keep quiet and invest their own money?

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Don Bauder Feb. 26, 2013 @ 8:19 a.m.

Murphyjunk: Price was touting his own fund on the KFMB show. The reason these radio touts pump their own garbage on the air is to draw in more suckers. If you have been had in this one, I would let KFMB know what you feel about it. Generally, these touts buy their way on to radio shows with advertising dollars. I assume that was true with Price. It is a smelly arrangement. Best, Don Bauder

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daventn April 2, 2013 @ 8:03 p.m.

I can tell you heard his presentation in person in La Jolla. I am one of the investors. I cannot speak to what other people were told, but he was clear to me about the nature of the investment being based on the inverse Libor and interest only. There was absolutely no deception. Furthermore, I took additional action and wrote the company, G&S who was administrating his fund and clarified with them that the investments were indeed yielding the interest rate he told me. All was clarified.

If I had not personally experienced the bullying by major wall street firms, and experienced first hand the corruption and cover up at a major institutional level, I would not believe it was possible for a major institution, nor a trigger happy government institution (SEC) to make such erroneous, false facts accusation. But, it happened here.

Cody Price, who I did not know until a year ago, has acted and conducted himself in a transparency and honesty that is rare.

Wait and see... this case is not over... and heads will be rolling at name brand institutions, while the SEC is given a proverbial slap on the wrist for their Barney Five tactics of due diligence.

Dave

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