Vancouver man charged in Ponzi scheme

first_imgA former investment adviser from Vancouver was among several people charged with perpetrating a long-running Ponzi scheme in the region.The Securities and Exchange Commission charged Lyman Bruhn with running a scheme that induced investments through false claims he was investing in blue-chip stocks, or public stocks of well-established companies.The fraud charges were filed Thursday in U.S. District Court in Portland against hedge fund manager Yusaf Jawed; Jawed’s attorney, Robert Custis; and Bruhn, an associate of Jawed’s.Bruhn agreed to settle the complaint, without admitting or denying guilt, which allows a judge to make a final judgment in his case. The judgment means Bruhn will forfeit his right to be an investment adviser, commission officials said.Reached by telephone, Bruhn’s Portland attorney, Chris Schatz, said his client was compliant with the commission’s ongoing investigation, but declined further comment.“Mr. Bruhn has cooperated fully with the SEC in reaching a settlement and will continue to cooperate as needed,” Schatz said.The commission said Bruhn’s cohort, Jawed, raised more than $37 million from more than 100 investors in the Pacific Northwest and throughout the country, including 20 investors in Washington. He allegedly used false marketing materials that boasted double-digit returns to lure people to invest in his hedge funds, according to a press release from the commission. He then used the money to pay off earlier investors and pay for his personal expenses and travel.last_img read more